1.1 Innovation and Market Growth

Question 1

What is Innovation?

Answer 1

Means bringing in a new idea and using it to improve a product or finding new better/ cheaper ways to make a product.

Question 2

How can the level of competition effect the market?

Answer 2

Improve the quality of products or customer service
Reduce prices or improve value for money
Innovate/ develop new products
More Marketing
Develop USP
Offer Extras

Question 3

How can demographics effect a market for example the car market?

Answer 3

Age - Smaller cheaper cars for young people.
Income - More expensive cars

Question 4

How can the economy effect the car market?

Answer 4

High interest decreases the amount of financed cars.
High inflation increases fuel prices

Question 5

How can social factors effect the car market?

Answer 5

Trends influenced by celebrity endorsement
Social Status

Question 6

How can ethics effect the car market?

Answer 6

Production of the cars working conditions
Source of materials
Honest product recall

Question 7

How can the environment effect the car market?

Answer 7

Electric/ Hybrid cars
Reduce energy use
reduce carbon emissions

Question 8

How can competition effect the car market?

Answer 8

Speed
Features
Size
Reliability
Prices

Question 9

How can technology effect the car market?

Answer 9

Apple carplay
Bluetooth
Heated Seats
Cameras
Glass roof
Self driving