customers Flashcards
market led
Market-led businesses carry out market research. They then create new products to satisfy those consumer preferences. The business will adopt a marketing strategy designed to reach and engage those customers.
product led
Product-based businesses focus on making all customers aware of their products, rather than targeting any particular customer or segment of the market. Such businesses concentrate on researching and developing.
market led advantages
- very responsive to the needs of its target audience
- responsive to changing trends in the market
market led disadvantage
- relies on market research which can be costly and time consuming
product led advantages
- business is always looking to improve so products are better and safer
- the quality of the product is better
product led disadvantages
- little market research is carried out.
- not responsive to changes in market trends.
why is it important to study consumer behaviour?
- how consumers behave
- why consumer behaviour patterns change
- when consumers are most likely to purchase
- how a customer feels before and after purchasing
routine purchase
Routine purchases require little involvement by the customer and are often made automatically.
informed purchases
In the case of products that the consumer will have for a longer period, the consumer usually takes time to investigate the product.
impulsive purchases
Impulse purchases occur when the consumer buys on the spur of the moment without prior planning or thought.
ways a consumer can obtain information about products
- personal sources
- commercial sources
- public sources
- experiential sources
market segmentation
A business may may segment the market for its product using demographics such as income, age, gender and occupation.
