1.2

Question 1

Choice

Answer 1

giving customers options and increasing the chance that the product will be perfect for
the tastes/habits of one type of customer.

Question 2

Convenience

Answer 2

making life easier for customers, perhaps by a great location or a product that saves time.

Question 3

Identifying customers

Answer 3

finding out who they are: their age, gender, incomes, where they live and what they want

Question 4

Quality

Answer 4

to a customer quality means getting what they want, or perhaps better than expected: (some companies use the term ‘customer delight’)

Question 5

Understanding customers

Answer 5

learning why customers do what they do, making it easier to see how to make a product that better suits them

Question 6

primary research

Answer 6

research done by the buisness

Question 7

secondary research

Answer 7

research that has alreaddy been gather by another person/buisness

Question 8

is primary or secondary research more accurate

Answer 8

secondary

Question 9

is primary or secondary research more expensive

Answer 9

primary

Question 10

are observations primary or secondary research

Answer 10

primary

Question 11

are govermental agency reports primary or secondary research

Answer 11

secondary

Question 12

Qualitative data

Answer 12

in-depth research into the
opinions and views of a small group of potential
or actual customers; it can provide insight into
why consumers buy what they buy.

Question 13

Quantitative data

Answer 13

factual research among
a large enough sample of people to provide
statistically reliable results, for example a
survey of 500 people aged 15–24 years.

Question 14

Demographics

Answer 14

the study of the statistical
differences that exist within a population, both
now and in the future.

Question 15

Lifestyle

Answer 15

grouping people by common
characteristics in how they live, from their
participation in sports and leisure to their views
on the environment, taste in music and even
nerdier things such as a passion for trains.

Question 16

Location

Answer 16

the extent to which consumers identify
with the place where they were born or grew up.

Question 17

Market segments

Answer 17

the subsets within a market
that have been identifi ed as a result of market segmentation

Question 18

(The) competition

Answer 18

companies operating in your
market or market sector.

Question 19

Gap in the market

Answer 19

an area on a market map
where few or no existing brands operate,
implying a business opportunity to fi ll an unmet consumer need

Question 20

Market map

Answer 20

measuring where existing brands
sit on a two-factor grid, for example young/old
compared with high price/low price.

Question 21

Competitive environment

Answer 21

the strength of
competition between companies in the same market

Question 22

Innovative

Answer 22

a new, perhaps original, product or process