1.1 - Meeting Customer Needs

Question 1

Distinguish between risk and uncertainty

Answer 1

● Uncertainty – the unpredictable and uncontrollable events
● Risk – The possibility that events will not occur as planned. Risk is measurable, predictable and quantifiable.

Question 2

Give the 4 types of market segmentation

Answer 2

• Demographic
• geographic
• behavioural (e.g. purchasing & product usage habbits)
• psychographic (i.e. beliefs, lifestyle, interests)

Question 3

Describe the use of ICT to support market research

Refering to specifications points

Answer 3

Websites
* Allows for online surveys, leave reviews, analyse competitor webites to identify info like store locations & prices, price comparison websites

Social networking
* Software can quickly identify customer opinions, identify emerging trends (1stMA)

Databases
* Data mining - quickly analyse data to gain insights, purchase databases from market research companies