Business Topic 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 (next to the bus stop) or a product that saves time in preparation or consumption.

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

Focus group

Answer 6

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

Question 7

Primary research

Answer 7

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 8

Qualitative data

Answer 8

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 9

Qualitative data

Answer 9

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 10

Quantitative data

Answer 10

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 11

Secondary research

Answer 11

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

Question 12

Demographics

Answer 12

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

Question 13

Lifestyle

Answer 13

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 14

Location

Answer 14

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

Question 15

Market segments

Answer 15

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

Question 16

(The) competition

Answer 16

companies operating in your market or market sector.

Question 17

Gap in the market

Answer 17

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

Question 18

Market map

Answer 18

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

Question 19

Competitive environment

Answer 19

the strength of competition between companies in the same market.

Question 20

Innovative

Answer 20

a new, perhaps original, product or process.

Question 21

Unethical

Answer 21

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