CAIE IGCSE Business Studies 3.1.3 Mass Markets and Niche Markets Questions
Practise mass-and-niche questions by defining the market type, applying benefits or limits and judging which option fits the case.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define mass market as selling the same product to the whole market or most consumers.
- Explain niche-market benefits such as meeting specific needs or facing fewer competitors.
- Apply drawbacks such as limited sales or vulnerability to demand changes to the business.
CAIE IGCSE Business Studies 3.1.3 Mass Markets and Niche Markets Questions question 1
[Maximum number: 4]
Amir and Carla are business partners. They own a luxury hotel which operates in a niche market. The business has a short hierarchical structure. Amir and Carla use Herzberg's theory of motivation to keep their 5 employees well motivated. Amir and Carla are considering opening another hotel in a different city. They will need to identify a suitable source of finance if they decide to expand. Secondary market research can be used to help a business decide whether it should expand.
Outline two advantages to Amir and Carla of operating in a niche market.
Advantage 1:
Advantage 2:
Award 1 mark for each relevant advantage [max 2].
Award 1 mark for each relevant reference to this business [max 2].
Points might include:
- Can charge higher prices [k] for its luxury service [app]
- Fewer competitors [k] for the hotel [app]
- Focus on meeting the needs of customers / can target customers [k] through its 5 employees [app]
- Can survive in markets dominated by larger firms [k] which may increase the chance of expanding [app]
- Builds up specialist skills/knowledge [k]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Hotel or related words such as rooms
- Luxury
- 5 (employees)
- Expand / new hotel / growth
- Different city
- (2) partners/partnership
Other appropriate examples can be credited.
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