1.2 Business

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

Quality

Answer 2

To a customer quality means getting
what they want, or perhaps better than
expected; some companies use the term
‘customer delight’.

Question 3

Qualitative data:

Answer 3

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 4

Convenience

Answer 4

making life easier for customers,
perhaps by a great location (next to the bus stop)
or a product that saves time in preparation or
consumption.

Question 5

Focus group:

Answer 5

a group discussion among people
selected from the target market; it draws on
psychology to provide qualitative insights into
consumer attitudes.

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 5

Identifying customers

Answer 5

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

Question 5

Primary research:

Answer 5

research conducted
first-hand; it is tailored to a company’s specific
needs, for example a quantitative sales
estimate for a brand new chocolate bar.

Question 6

Quantitative data:

Answer 6

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 7

Secondary research:

Answer 7

when a company uses
research that has already been carried out for
general purposes.

Question 8

Demographics:

Answer 8

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

Question 9

Location:

Answer 9

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

Question 9

Lifestyle:

Answer 9

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 10

Market segments:

Answer 10

the subsets within a market
that have been identified as a result of market
segmentation.

Question 11

(The) competition:

Answer 11

companies operating in your
market or market sector.

Question 12

Gap in the market:

Answer 12

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 13

Market map:

Answer 13

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

Question 14

Competitive environment:

Answer 14

the strength of
competition between companies in the same
market.

Question 15

Innovative:

Answer 15

a new, perhaps original, product or
process.

Question 16

Unethical:

Answer 16

an action or decision that is wrong
from a moral standpoint.