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GCSE Business (Edexcel) > 1.2 Spotting a business opportunity > Flashcards

1.2 Spotting a business opportunity Flashcards

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1
Q

Give four customer needs

A
  1. Price, quality, choice, convenience
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2
Q
  1. What are the advantages of meeting customer needs?
A
  1. Higher satisfaction, more customer loyalty, More repeat purchase, positive reputation.
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3
Q
  1. What are the disadvantages of not meeting customer needs
A
  1. Lower satisfaction, less customer loyalty, less repeat purchase, poor reputation
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4
Q
  1. What is meant by price?
A
  1. The amount charged to customers for a good or service
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5
Q
  1. What is meant by convenience?
A
  1. How easy to access a good or service is.
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6
Q
  1. What is meant by choice?
A
  1. The variety a business offers in terms of its products or services.
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7
Q
  1. What is meant by quality?
A
  1. How fit for purpose a product or service is; how well a product or service meets a customer’s needs.
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8
Q
  1. Why might a business conduct market research?
A
  1. To identify and understand customer needs, to identify gaps in the market, to reduce risk, to inform business decisions.
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9
Q
  1. Give two types of market research
A
  1. Primary and secondary
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10
Q
  1. Give two types of data that can be collected from conducting market research.
A
  1. Quantitative and qualitative
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11
Q
  1. What is meant by primary market research?
A
  1. Research that is collected first hand, it is research that does not already exist.
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12
Q
  1. Give four examples of primary market research.
A
  1. Survey, questionnaire, focus group, observation
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13
Q
  1. Give two benefits of conducting primary research.
A
  1. Up to date, specific to the business needs
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14
Q
  1. What is meant by a survey?
A
  1. investigate the opinions or experience of (a group of people) by asking them questions
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15
Q
  1. What is meant by a interview?
A
  1. An interview is a structured conversation where one participant asks questions, and the other provides answers.
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16
Q
  1. What is meant by a focus group?
A
  1. A group of people assembled to participate in a discussion about a product before it is launched, or to provide feedback
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17
Q
  1. What is meant by an observation?
A
  1. When customers are watched by the business to see their behaviours.
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18
Q
  1. What is meant by secondary market research?
A
  1. Research that already exists, it is second hand information.
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19
Q
  1. Give three examples of secondary market research
A
  1. Market reports, government reports, internet
20
Q
  1. Give two benefits of conducting secondary market research
A
  1. Its quick to gather, its cheap
21
Q
  1. Give two limitations of conducting secondary market
A
  1. May be out of date, not specific to the business
22
Q
  1. What is meant by a market report?
A
  1. A report written by a market specialist, detailing the key trends within a market e.g. Mintel.
23
Q
  1. What is meant by a government report?
A
  1. A report written by the government on a particular issue or piece of research e.g. government report on the gender pay gap.
24
Q
  1. What is meant by the internet?
A
  1. A global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardised communication protocols.
25
Q
  1. What is meant by qualitative data?
A
  1. Data that includes judgements and opinions.
26
Q
  1. Give an example of how a business would gather qualitative data
A
  1. Asking open ended questions; conducting a focus group
27
Q
  1. Give a benefit of gathering qualitative data
A
  1. It is more detailed so offers more insight into the reasoning behind a decision.
28
Q
  1. Give a disadvantage of gathering qualitative data
A
  1. It can be time consuming to analyse.
29
Q
  1. What is meant by quantitative data?
A
  1. Data that includes numbers and statistics.
30
Q
  1. Give an example of how a business would gather quantitative data
A
  1. Asking closed questions; conducting a poll on social media.
31
Q
  1. Give a benefit of gathering quantitative data
A
  1. Its quick and easy to analyse
32
Q
  1. Give a disadvantage of gathering quantitative data
A
  1. It doesn’t provide reasoning behind the choices made.
33
Q
  1. How can social media be used to gather market research?
A
  1. Through reviews, a poll, checking number likes, follows.
34
Q
  1. What is the benefit of using social media to gather market research?
A
  1. Wide audience, quick and easy to use.
35
Q
  1. What is meant by reliability?
A
  1. The quality of being trustworthy or of performing consistently well
36
Q
  1. Why is reliability important when gathering market research?
A
  1. If the data is reliable the business will make better quality decisions- meaning higher chance of business success.
37
Q
  1. What is meant by market segmentation?
A
  1. When the market is split into groups of customers who have similar characteristics.
38
Q
  1. Give four ways a business could segment the market
A
  1. Age, gender, income, lifestyle
39
Q
  1. What is the benefit to a business of segmenting the market?
A
  1. Able to adapt products to more closely meet the customer needs, can target advertising more appropriately, can sell more effectively in suitable locations.
40
Q
  1. What is the disadvantage to a business of segmenting the market?
A
  1. Not all customers may fit into the category, may increase costs trying to meet the needs of different groups.
41
Q
  1. What is a market map?
A
  1. A diagram which uses two axes (usually price and quality) to allow products or businesses to positioned based on how they meet the different criteria.
42
Q
  1. What is the benefit to a business of producing a market map?
A
  1. Helps identify a gap in the market, can see how saturated a market is (how many competitors are positioned in a certain area)
43
Q
  1. What is meant by direct competition?
A
  1. When two businesses sell the same/similar products to the same groups of customers. E.g. Coca Cola & Pepsi
44
Q
  1. What is meant by indirect competition?
A
  1. When two businesses selling different product compete for the same consumer income. E.g. Vue Cinema and Hollywood Bowl.
45
Q
  1. How can businesses compete with each other? (Five main ways)
A
  1. Price, quality, location, customer service, product range
46
Q
  1. What impact does lots of competition have on a business?
A
  1. May encourage innovation, may encourage wider product portfolio, may cause the business to advertise more, the business may lower their prices.
47
Q
  1. If a business is in a market where they don’t have lots of competition, why might this be a disadvantage to customers?
A
  1. The business may innovate less- leading to lower quality products, firm may charge the customers higher prices.

GCSE Business (Edexcel) (6 decks)

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