Commerce AT4

Question 1

Describe the factors that differentiate products in the market.

Answer 1

Factors that differentiate products include service quality, after sales advice, ongoing maintenance, convenience, value for money, pricing strategies, and product features.

Question 2

How does service quality impact product differentiation?

Answer 2

Service quality impacts product differentiation by ensuring reliability, ease of use, durability, and well-designed features that enhance customer satisfaction.

Question 3

Define corporate social responsibility (CSR) in the context of business.

Answer 3

Corporate social responsibility (CSR) involves businesses taking steps to ensure that their operations consider the broader social welfare, including the well-being of employees, customers, suppliers, and the environment.

Question 4

What role does ethical consumerism play in product promotion?

Answer 4

Ethical consumerism influences product promotion by encouraging practices such as fairtrade certification, fair labor practices, and the avoidance of animal testing, appealing to consumers’ values.

Question 5

How can businesses ensure their products provide the best value for money?

Answer 5

Businesses can ensure their products provide the best value for money by focusing on quality, features, performance, and affordability, while also considering pricing strategies.

Question 6

Describe the importance of the promotion mix in marketing.

Answer 6

The promotion mix is important in marketing as it encompasses various strategies, including product design, place of sale, distribution methods, and pricing, to effectively reach and attract the target market.

Question 7

How can convenience influence consumer purchasing decisions?

Answer 7

Convenience influences consumer purchasing decisions by offering hassle-free shopping experiences, such as online shopping, access to apps, and suitable shopping hours.

Question 8

Define the role of packaging in product differentiation.

Answer 8

Packaging plays a crucial role in product differentiation by enhancing branding, attracting consumer attention, and providing information about the product’s features and benefits.

Question 9

What are some green policies businesses can adopt to minimize environmental impact?

Answer 9

Businesses can adopt green policies such as using sustainably sourced raw materials, minimizing waste, implementing recycling programs, and reducing packaging.

Question 10

How does pricing strategy affect product differentiation?

Answer 10

Pricing strategy affects product differentiation by allowing businesses to position their products as good value, longer-lasting, higher quality, or with more features compared to competitors.

Question 11

Describe the significance of after sales advice in customer satisfaction.

Answer 11

After sales advice is significant in customer satisfaction as it helps customers understand how to use the product effectively, resolve issues, and maintain the product over time.

Question 12

What is the impact of travel time and store accessibility on consumer behavior?

Answer 12

Travel time and store accessibility impact consumer behavior by influencing the convenience of shopping, which can determine whether consumers choose to purchase in-store or online.

Question 13

How can businesses effectively distribute their products?

Answer 13

Businesses can effectively distribute their products by choosing the right distribution channels, such as selling directly to consumers online, through retailers, or via wholesalers.

Question 14

Define the characteristics of a high-quality product.

Answer 14

A high-quality product is characterized by a high degree of excellence, reliability, ease of use, durability, and thoughtful design.

Question 15

What is the relationship between product features and consumer value perception?

Answer 15

The relationship between product features and consumer value perception is that enhanced features can lead to a higher perceived value, making consumers more willing to pay a premium price.

Question 16

Describe the purpose of setting prices in marketing.

Answer 16

Prices can be set to undercut competitors, reflect the quality of the product, and attract attention through specials.

Question 17

Define the promotional mix.

Answer 17

The promotional mix is a combination of marketing methods including advertising, sales, public relations, and direct marketing to achieve a marketing goal.

Question 18

How does personal selling benefit businesses?

Answer 18

Personal selling creates strong connections, has more influence, and offers flexibility, but it is time-consuming, expensive, and has limited reach.

Question 19

What are the advantages of advertising?

Answer 19

Advertising can lead to market expansion, provide a competitive advantage, and increase sales/revenue.

Question 20

Identify the disadvantages of advertising.

Answer 20

The impact of sales from advertising is uncertain, there are risks of negative publicity, and it can involve misleading information.

Question 21

Explain the concept of direct marketing.

Answer 21

Direct marketing is a form of advertising that communicates a message directly to the consumer, allowing for selective reach and frequency.

Question 22

What are the limitations of direct marketing?

Answer 22

Direct marketing can have limited accuracy, image factors, and can be costly.

Question 23

Describe sales promotion and its purpose.

Answer 23

Sales promotion uses temporary campaigns or offers to increase interest, differentiate from competition, and provide opportunities for communication.

Question 24

What are the potential downsides of sales promotion?

Answer 24

Sales promotion can tarnish brand image, is often a short-term strategy, and cannot compensate for long-term marketing efforts.

Question 25

Define a target market.

Answer 25

A target market is a group of present and potential customers to whom a business intends to sell its products, sharing similar characteristics such as age, income, lifestyle, and location.

Question 26

Differentiate between primary and secondary target markets.

Answer 26

Primary target markets are where most marketing resources are directed, while secondary target markets are smaller and less important segments.

Question 27

What are the legal issues associated with promotion?

Answer 27

Legal issues include the prohibition of false promotion of a product using deceptive contacts or claims.

Question 28

Explain the ethical issues in promotion.

Answer 28

Ethical issues in promotion require that the promotion of a product must be honest and not misleading.

Question 29

How does packaging contribute to marketing effectiveness?

Answer 29

Packaging helps identify a product, evaluate its quality, reduce perceived risk, and provides a psychological reward symbolizing quality and status.

Question 30

What role does branding play in marketing?

Answer 30

Branding creates a memorable impression on customers and allows them to expect good quality from the product.

Question 31

Describe the role of technology in modern marketing.

Answer 31

Technology enables marketers to gather large amounts of data, target consumers effectively, and monitor successful strategies.

Question 32

How does digital advertising differ from traditional advertising?

Answer 32

Digital advertising allows ads on social media, online streaming, and mobile apps, providing tracking and analysis of consumer behavior.

Question 33

Define social media advertising.

Answer 33

Social media advertising is a form of online advertising that uses platforms like Facebook, YouTube, and Twitter to deliver targeted commercial messages.

Question 34

What are the four types of e-commerce transactions?

Answer 34

The four types of e-commerce transactions are Business to Consumer (B2C), Business to Business (B2B), Consumer to Consumer (C2C), and Government to Consumer (G2C).

Question 35

List some advantages of using the internet for commercial transactions.

Answer 35

Advantages include speed, reliability, a vast amount of available information, increased choice leading to lower prices, and access to a larger market.

Question 36

Identify some disadvantages of online shopping.

Answer 36

Disadvantages include potential tech failures, scams, and breaches of privacy and data collection.

Question 37

Explain the concept of location-based marketing.

Answer 37

Location-based marketing allows businesses to send tailored marketing messages to consumers based on their geographical location.

Question 38

How does mobile phone marketing compare to email marketing?

Answer 38

Mobile phone marketing delivers messages automatically and can alert customers about special deals, offering distinct advantages over email.

Question 39

Describe the significance of e-commerce in Australia.

Answer 39

Australia ranks 10th in the world for information and communication technology (ICT) use, indicating a high level of internet usage for commercial purposes.

Question 40

What is online shopping?

Answer 40

Online shopping is a form of electronic commerce where consumers buy goods and services over the internet.

Question 41

How do push notifications work in mobile marketing?

Answer 41

Push notifications can be sent to customers even if an app is not opened, allowing businesses to engage users directly.

Question 42

Define e-commerce.

Answer 42

E-commerce is the use of electronic transactions by businesses and consumers for commercial purposes.

Question 43

What factors influence selling techniques in marketing?

Answer 43

Factors include technology, consumer behavior, market trends, and the effectiveness of different advertising methods.

Question 44

Explain the importance of webpages for businesses.

Answer 44

Webpages connect consumers to businesses, as customers expect companies to have an online presence.

Question 45

Describe the process of online shopping in a cybermall.

Answer 45

Consumers use a search engine to access a cybermall, where they can browse various e-retailers, add items to their virtual shopping trolley, and complete purchases through a virtual checkout.

Question 46

How do online shoppers typically make payments?

Answer 46

Online shoppers commonly use credit cards, PayPal accounts, Cash on Delivery (C.O.D), billing to mobile phones and landlines, Bitcoin and other cryptocurrencies, BPay, cheques, debit cards, direct debit, and gift cards.

Question 47

Define a payment gateway.

Answer 47

A payment gateway is technology used by merchants to accept payments from customers.

Question 48

What is BPay?

Answer 48

BPay is an automated bill paying system that allows consumers to pay bills electronically.

Question 49

Explain the role of Electronic Funds Transfer at Point Of Sale (EFTPOS).

Answer 49

EFTPOS is a system that enables electronic payment for goods and services at the point of sale using debit or credit cards.

Question 50

How do smartphone contactless payments work?

Answer 50

Smartphone contactless payments, such as Apple Pay, allow consumers to make payments by tapping their smartphones on a compatible payment terminal.

Question 51

What are some e-consumer protection issues?

Answer 51

E-consumer protection issues include domestic and international laws, security and authentication, and compliance with acts such as the Electronic Transactions Act 1999, the Privacy Amendment (Private Sector) Act 2000, and the Cybercrime Act 2001.

Question 52

Describe the significance of blockchain technology in e-commerce.

Answer 52

Blockchain technology provides a secure and transparent way to conduct transactions, which can enhance trust and reduce fraud in e-commerce.

Question 53

What laws relate to young people and e-commerce?

Answer 53

Laws relating to young people and e-commerce are designed to protect minors in online transactions and ensure their safety while engaging in digital commerce.