IGCSE Business: Marketing and the market and Market research (Cambridge 0264) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover sections 3.1 (Marketing and the market) and 3.2 (Market research) of the Cambridge IGCSE Business 0264 syllabus for examination in 2027, 2028 and 2029. All businesses and figures are invented. Learn the content first from the study guide. Course pages: the Cambridge IGCSE Business hub and the printable checklist. The free diagnostics show which topics need most work.

Questions

1. State two roles of marketing in a business. [2]

2. Dovedale Footwear had sales revenue of Rs 9,600,000 last year. Total sales revenue for the whole footwear market was Rs 120,000,000. Calculate Dovedale’s market share. Show your working. [2]

3. Pertwee Toys has a market share of 12.5%. Its sales revenue is Rs 3,000,000.

(a) Calculate the total sales revenue of the whole market. [2] (b) The next year, the market grows to Rs 30,000,000 and Pertwee’s sales revenue rises to Rs 3,300,000. Calculate Pertwee’s new market share. [2] (c) Explain whether Pertwee’s position in the market has improved. [3]

4. (a) Explain two reasons why consumer spending patterns may change. [4] (b) Explain one way a business could respond when its market becomes more competitive. [2]

5. Brackenwith Saddlery makes custom-fitted saddles for working horses. It sells to a small number of customers who value expert fitting.

(a) Define the term niche market. [2] (b) Explain one advantage and one disadvantage to Brackenwith of selling in a niche market. [4]

6. Ulverley Outdoor sells clothing. It has designed the following.

• A low-price waterproof jacket for customers with lower incomes.
• A heavy winter coat sold only in its northern shops.
• A range of lightweight clothing for people who run and cycle to work.

(a) Identify the basis of market segmentation used for each of the three designs. [3] (b) Explain one advantage and one disadvantage of market segmentation to Ulverley Outdoor. [4]

7. Yoxall Tea has 6,000 customers. It sends a questionnaire to a sample of 150 of them. Of these, 60 say they prefer loose-leaf tea to tea bags.

(a) Calculate the percentage of the sample who prefer loose-leaf tea. [2] (b) Estimate how many of all Yoxall’s customers might prefer loose-leaf tea. [2] (c) Explain why Yoxall uses a sample rather than asking every customer. [2] (d) Explain one reason why the estimate in (b) may not be accurate. [2]

8. (a) Identify one example of primary market research and one example of secondary market research. [2] (b) Explain one benefit and one drawback of focus groups to a business. [4]

9. Merrowby Books sells new books in a regional market. The table shows sales revenue (Rs million).

	Year 1	Year 2
Merrowby Books	2.4	2.52
Largest competitor	9.0	9.36
Whole market	30	36

(a) Calculate Merrowby’s market share in each year. [4] (b) Explain why Merrowby’s market share fell although its sales revenue rose. [2] (c) Merrowby is considering concentrating on a niche market for illustrated children’s books instead of continuing to sell to the mass market. Justify a recommendation for Merrowby. [6]

10. Zephyra Spice sells spice blends. It has 2,000 customers on its mailing list. It surveys a sample of 200 and asks whether they would buy a new ready-to-cook spice kit.

Age group	Number in sample	Would buy
18 to 29	80	56
30 to 49	90	27
50 and over	30	3

(a) Calculate the percentage of the whole sample who would buy the kit. [2] (b) State which age group is most interested in the kit and give its percentage. [2] (c) Explain one reason why the sample may not represent all of Zephyra’s potential customers. [2] (d) Zephyra can afford to market the kit to only one age group at first. Recommend which group and justify your choice. [6]

Answers

1. Any two of: identifying customer needs; satisfying customer needs; maintaining customer loyalty; building customer relationships; anticipating changes in customer needs. [1] [1] Examiner insight: a “state” question wants two clear points in a few words each, and two different roles are needed for two marks.

2. Market share = sales revenue of the business / total sales revenue for the whole market × 100 = 9,600,000 / 120,000,000 × 100 [1] = 8% [1] Examiner insight: write the formula or the substitution line so a slip in the final figure can still be seen, and give the answer as a percentage because the syllabus formula is expressed as one.

3. (a) Total market = 3,000,000 / 12.5 × 100 [1] = Rs 24,000,000 [1] (b) 3,300,000 / 30,000,000 × 100 [1] = 11% [1] (c) Sales revenue rose by 10% from Rs 3,000,000 to Rs 3,300,000 [1] but the market grew by 25% from Rs 24,000,000 to Rs 30,000,000 [1] so Pertwee’s market share fell from 12.5% to 11%, which means its position has weakened relative to the market [1] Examiner insight: an “explain whether” answer should reach a clear conclusion and support it with figures from your earlier parts.

4. (a) Any two reasons, each with an explained effect, for example: incomes rise [1] so customers can afford to buy more or trade up to higher-quality goods [1]; fashion or tastes change [1] so demand shifts away from older styles towards newer ones [1] (b) One response named, for example: improve the product or add a new feature [1] to give customers a reason to choose the business over its rivals [1] Examiner insight: “explain two reasons” needs two separate reasons, and each is stronger if followed by what it does to spending.

5. (a) A niche market is a small, specialised part of a larger market [1] with its own particular needs that a business can target [1] (b) Advantage, for example: few competitors sell custom-fitted saddles [1] so Brackenwith can charge higher prices and keep loyal customers [1] Disadvantage, for example: only a small number of customers exist [1] so sales revenue and growth are limited, and a bigger firm entering the niche could take customers [1] Examiner insight: use the business in the stem. A general “less competition” point earns more when it is tied to custom-fitted saddles and to a result such as higher prices or loyalty.

6. (a) Low-price jacket for lower incomes: income [1] Winter coat sold in northern shops: location [1] Lightweight clothing for people who run and cycle to work: lifestyle [1] (b) Advantage, for example: products and advertising match each group so customers feel their needs are met [1] which can raise sales revenue [1] Disadvantage, for example: researching and producing different ranges costs more [1] so costs per item rise and some segments may be too small to be worth serving [1] Examiner insight: for an “identify” part, name the basis in the syllabus list (age, income, location, gender or lifestyle).

7. (a) 60 / 150 × 100 [1] = 40% [1] (b) 40% of 6,000 [1] = 2,400 customers [1] (c) Asking all 6,000 customers needs far too much time and money [1] whereas a sample can still give a useful guide to what all customers think [1] (d) For example: the 150 may not be a representative sample of all customers [1] so those who replied may prefer loose-leaf tea more or less than the other customers do, making the estimate biased [1] Examiner insight: in the estimate, apply the sample percentage to the full customer number and call it an estimate. In “why may it not be accurate”, say what is wrong with the sample and what effect it has on the result.

8. (a) Primary, for example: questionnaires or surveys, interviews, focus groups or observation [1] Secondary, for example: competitor websites, government sources, market reports or trade magazines [1] (b) Advantage: a focus group lets the business hear detailed opinions and reasons, and can show why customers think as they do [1] which helps it improve the product or message [1] Disadvantage: the group is small [1] so it may not represent the whole market, and a strong speaker can influence the others [1] Examiner insight: the two examples must come from the right category, and putting a primary method in the secondary slot loses that mark. For advantages and disadvantages, write the feature, then the effect on the research.

9. (a) Year 1: 2.4 / 30 × 100 [1] = 8% [1] Year 2: 2.52 / 36 × 100 [1] = 7% [1] (b) Merrowby’s sales revenue grew by 5% (2.4 to 2.52) [1] but the whole market grew by 20% (30 to 36), so the market grew faster than Merrowby, and its share of the total fell [1] (c) Points for the niche market, for example: Merrowby holds only 7% of a market where the largest competitor holds 26%, so competing as a small seller in the mass market is hard [1] a niche such as illustrated children’s books has fewer competitors, so Merrowby could build a specialist reputation and charge higher prices [1] Points against, for example: the niche has fewer customers, so sales revenue growth is limited [1] and a larger firm could enter it [1] Judgement, for example: Merrowby should move into the niche, because its share is falling in the mass market and it lacks the size to win a price fight [1] provided that it first uses market research, such as a survey of local parents, to check there are enough buyers [1] Examiner insight: a “justify” answer should support the recommendation with evidence from the data and still weigh the other side. A list with no decision does not show the judgement asked for.

10. (a) Total who would buy = 56 + 27 + 3 = 86 [1] 86 / 200 × 100 = 43% [1] (b) The 18 to 29 age group [1] with 56 / 80 × 100 = 70% [1] (c) For example: all the people in the sample are on the mailing list, so they may already like Zephyra’s products more than people who are not on it [1] which could make interest in the kit look higher than it is in the wider market [1] (d) Recommended group: 18 to 29 [1] because 70% of this group would buy, far higher than 30% of those aged 30 to 49 and 10% of those aged 50 and over [1] and they supply 56 of the 86 who would buy, about 65% of all interested respondents [1] so advertising aimed at them is likely to give the best return for the limited budget [1] Counter-point: the 30 to 49 group still provides 27 buyers [1] Judgement: start with the 18 to 29 group, then use early sales results to decide whether to target the 30 to 49 group next [1] Examiner insight: in analysis questions, quote figures from the table and compare groups. A recommendation that says “target the young” without percentages or numbers of buyers is unsupported.

Where marks are usually lost

• Using profit or units instead of sales revenue in the market share formula.
• Leaving out the percent sign or giving a bare number for market share.
• Stating that rising sales revenue means a rising market share without checking the market total.
• Giving an advantage or disadvantage of a niche market that is not applied to the business in the question.
• Describing a research method without saying whether it is primary or secondary.
• Giving a “justify” answer that supports one side only and does not reach a decision.

Next steps

• Condense the content with the revision notes.
• Go to the Cambridge IGCSE Business hub and tick topics off the printable checklist.
• Take the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

Does rising sales revenue mean market share has risen? No. Market share compares a business’s sales revenue with the whole market, so if the market grows faster than the business, its share falls even though its sales revenue rises.

What are common mistakes on market share and market research questions in IGCSE Business 0264? Students often use profit or units instead of sales revenue in the market share formula, leave out the percent sign, describe a research method without saying whether it is primary or secondary, and give niche market advantages that are not applied to the business. A “justify” answer that supports one side only also loses marks.

Which syllabus sections cover marketing and market research? Section 3.1 (Marketing and the market) and section 3.2 (Market research) of the Cambridge IGCSE Business 0264 syllabus cover these topics.

Can a sample result be treated as certain for all customers? No. A sample represents the whole population, but its accuracy depends on its size, how it was chosen, question design and the honesty of answers, so results are estimates rather than certain facts.

Official syllabus

Cambridge IGCSE Business 0264 syllabus for examination in 2027, 2028 and 2029, published by Cambridge University Press & Assessment (Cambridge International Education): sections 3.1 and 3.2.