Consumer Research - Benefits

Question 1

List the benefits of consumer research for the retailer.

5

Answer 1

Provides information about consumers

Reduces the financial risk

Overproduction is avoided

Helps determine a recommended retail price (RRP)

Consumer profiles are established

Question 2

Give an example of information about the consumer that may be useful to the retailer.

Answer 2

Expectations about a product or service

Question 3

How can consumer expectations discovered through consumer research be useful for the retailer?

Answer 3

They are used in the development of a product or service to ensure that it sells

Question 4

What does consumer research reduce the financial risk of for the retailer?

Answer 4

It reduces the financial risk of launching a new product or service

Question 5

How does consumer research reduce the financial risk of the retailer?
(2)

Answer 5

As retailers can identify if their product/service is needed on market

This avoids investing in a product or service that will not sell

Question 6

How does consumer research avoid overproduction of a product by a retailer?

Answer 6

As retailers can determine the market size for their products

Question 7

What does consumer research help determine?

Answer 7

A recommended retail price (RRP) for products and services that is acceptable to consumers

Question 8

What does consumer research help establish for retailers?

Answer 8

It establishes consumer profiles for products and services in terms of age, gender and lifestyle, so retailers know who their target market should be

Question 9

What is the benefit of consumer research for retailers

Answer 9

It lets them know who their target market should be

Question 10

List the benefits of consumer research for the consumer.

2

Answer 10

Retailers can make specific products/services to meet consumers requirements

It may bring about a drop in prices or one company will better their product due to competition

Question 11

What brings about a drop in prices or a better product as a result of consumer research?

Answer 11

Competition revealed tin consumer research

Question 12

What allows retailers to make specific products/services to meet consumers requirements?

Answer 12

Needs and wants are identified through consumer research which allows for this

Question 13

How can competition be beneficial for the consumer?

Answer 13

This is beneficial as quality is improved and they get better value for money due to competition resulting in better quality products for lower prices