1.2 Spotting A Business Opportunity Flashcards
Name four different factors that will influence a customer’s decision when choosing a product.
Price
Quality
Choice
Convenience
Give the 4 purposes of market research.
Identify and understand customer needs.
Identify gaps in the market.
Reduce risk.
Inform business decisions.
Which market research methods will result in new information?
Primary market research.
Which market research methods involve gathering data that already exists?
Secondary market research.
Is a survey a primary or secondary market research method?
Primary market research.
Is a questionnaire a primary or secondary market research method?
Primary
Is a focus group a primary or secondary market research method?
Primary
Are observations a primary or secondary market research method?
Primary
Is Internet research a primary or secondary market research method?
Secondary
Is a market report a primary or secondary market research method?
Secondary
Is a government report a primary or secondary market research method?
Secondary
Which type of data is based on peoples’ feelings, judgements and opinions?
Qualitative data.
Which type of data is numerical?
Quantitative.
Which type of data is easier to analyse to provide statistics. eg. 67% prefer pepperoni.
Quantitative.
Which technology has had a positive impact on market research by making it quicker and cheaper than traditional methods.
Social media.
What involves grouping customers together based on shared characteristics, wants and needs?
Market segmentation.
Name the 6 ways of segmenting the market.
Age
Gender
Location
Income
Lifestyle
Demographics
What are 3 disadvantages of segmenting the market?
Narrowing the market.
Increasing costs.
Need for continual review / re-evaluation.
What is the name of the diagram that helps a business to position their product against their competitors on the scales of price and quality.
Market map
When operating in a competitive environment, a business should look at which 5 features to assess the strengths and weaknesses of the competition.
Quality
Customer service
Price
Location
Product range
