customers

Question 1

market led

Answer 1

• The business develops products based on customers wants
• High levels of market research carried out to determine customer wants
• Market-led businesses often exist in highly competitive markets
• The marketing mix will be responsive to changes in external factors and consumer behaviour

Question 2

product led

Answer 2

• The business produces products that it believed customers will want and tries to convince them to buy them
• Market is not seen as important however, high levels of product research and development
• New technologies, with little to no competition are often product led
• Often the product is unresponsive to changing external factors

Question 3

differences between market and product led

Answer 3

• Market led business develops products based on customers wants however product led produces products that it believed customers will want and tries to convince them to buy them
• Market led high levels of market research carried out to determine customer wants whereas product led the market is not seen as important however, high levels of product research and development
• Market led businesses often exist in highly competitive markets whereas New technologies, with little to no competition are often product led
• Market led marketing mix will be responsive to changes in external factors and consumer behaviour however product led often the product is unresponsive to changing external factors

Question 4

consumer behaviour

routine/habitual

Answer 4

• Routine purchases require little involvement by the customer. Routine purchases are made automatically for items such as:
• cereal
• washing powder
• toiletries

Sales promotions such as money off vouchers or buy-one-get-one-free (BOGOF) can be used to influence routine purchasing.

Question 5

consumer behaviour

informed

Answer 5

• Informed consumer behaviour is when the buyer takes time to investigate the product. They will consider different products that are on offer and the specifics of the product they are interested in.
• This behaviour is usually used when a customer is buying expensive long-term goods such as:
  1. a car
  2. an expensive item of technology

Question 6

consumer behaviour

impulsive

Answer 6

• Impulse purchases happen without any prior planning or thought. Impulse purchasing often happens because a product has caught a customer’s eye, such as a bar of chocolate placed at the checkout.
• Effective point of sale displays can influence impulse purchasing.