Question detail
FreshFork serves local families while changing supplier; the case evidence includes gross profit margin of ?10,145, sales of 325 units, and a 22% change in costs or demand. Which option best applies Explain benefits and risks of developing new products?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The elements of the marketing mix: price, product, promotion and place
Question
- A. Use product to judge gross profit margin, local community impact, and the business objective in Product.
- B. Give only a definition of The elements of the marketing mix: price, product, promotion and place without using the case evidence.
- C. Treat margin and markup as identical and ignore the effect on local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use product to judge gross profit margin, local community impact, and the business objective in Product.
Explanation
The answer is commercially strongest because Use product to judge gross profit margin, local community impact, and the business objective in Product. The case evidence gives ?11,645, 325 units, and 22%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the local community, or ignore the business objective.
Common mistake
Product common mistake 1
Giving a vague answer instead of directly addressing: Explain benefits and risks of developing new products..
Answer by clearly explaining how to explain benefits and risks of developing new products..
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