Market/product led and consumer behaviour Flashcards
What are market led products?
When products are developed based on the wants of customers
Marker led product examples:
Diatary requirements, asda chosen by you range
What are product led products?
When products are produced that they believe customers will want to buy (USP)
Product led examples:
Apple, dyson, pharmaceuticals
Comparing market led and product led:
Market led:
- Lots of market research carries out
- Highly competitive
- Response to external factors
Product led:
- High level of product development and research required
- New technology means low competition
- Unresponsive to external factors
What is consumer behavior?
The actions and throughts that consumers make when purchasing products
Why do consumers buy products?
Needs, wants, social trends, gift. The business needs to have different motivations and offer products accordingly
What types of purhcases do consumers make?
- Routine
- Impulse
- Informed
What are rouitine purchases?
These are everyday inexpensive items (e.g. food, drinks). Marketing or promotions must be done to raise awairness and keep customers loyal
What are impulse purchases?
Spur of the moment purchases. The business must give customers information about the product e.g. brochures, reviews
What are informed purchases?
These tend to be expensive purchases e.g. holodays or cars. You must get customers interested using bright colours or promotion
How do consumers purchase products?
- Cash/debit card
- Credit card
- Store credit
The business needs to be able to respond to changes in how consumers are paying
Where do consumers purchase products?
- Retail
- E-commerce
Businesses need to adapt and change to sell products in a different way in response to change
