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Edexcel GCSE Business > Spotting A Business Opportunity > Flashcards

Spotting A Business Opportunity Flashcards

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1
Q

Main customer needs a business must consider

A

Price
Quality
Choice
Convenience

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2
Q

Convenience

A

A product or service’s ability to fit in well with a customer’s lifestyle or routine, the ease with which it can be use and/or its easy-to-reach

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3
Q

Price - customer needs

A

Businesses find that lowering their prices will increase their sales
Value can change depending on circumstance for example weather

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4
Q

Quality - customer need

A

A customer assesses a products quality based not only on the amount that they spend but also their expectations of the product and whether the product meets its customers’ expectations
Customer service

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5
Q

Choice - customer need

A

Customers like to have a choice because different customers have different tastes and needs

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6
Q

Price - Example of meeting customer need

A

Offering products at a competitive price

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7
Q

Quality - Example of meeting customer need

A

Training and encouraging staff to provide a very friendly an helpful service

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8
Q

Choice - Example of meeting customer need

A

Keeping a wide variety of products in stock for customers to choose between

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9
Q

Convenience - Example of meeting customer need

A

Offering same-day or next-day delivery

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10
Q

What needs and behaviours do customers make buying decisions based on ?

A

Family needs
Financial needs
Emotional needs
Brand loyalty

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11
Q

Viable

A

Able to work properly or successfully

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12
Q

Primary research

A

New research that is carried out to answer specific issues and questions

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13
Q

What does primary research usually involve?

A

Questionnaires
Focus groups
Interviews
Observations

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14
Q

Ways a survey could be conducted

A

Online, using online questionnaires and online focus groups
In person or face-to-face, using interviews and focus groups
Over the telephone or through the post

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15
Q

Questionnaire

A

A set of questions with a choice of answers

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16
Q

Focus group

A

A group of people who discuss their views on a product, service, advertisement or idea, either face-to-face or online

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17
Q

Target market

A

A particular group of consumers at which a business aims its products and services

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18
Q

Sample

A

A portion of the population asked for their opinions in order to draw conclusions about the behaviour of the whole population

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19
Q

Interviews

A

Can be conducted by telephone, face - to face or online.

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20
Q

Observations

A

Means watching how customers behave naturally, when they do not think they are being watched.

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21
Q

Examples of situations in which observation could be used include

A

Understanding people’s reactions to different packaging designs
Measuring how long it take someone to make a purchase decision in a shop
Understanding how people actually use a product and whether they encounter and whether they encounter ay problems

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22
Q

An advantage of using observation

A

The customers behaves relatively naturally, according to their own feelings or thoughts, because they are unaware that they are being observed

23
Q

Biased

A

Unbalanced or inclined to agree with a particular judgement or idea rather than presenting the evidence fairly

24
Q

Secondary research

A

Research using existing sources of information that has previously been researched, often by other people or for other purposes, including published research reports, scientific reports

25
Q

Disadvantage of using observation in market research

A

It is time-consuming ad observations can be inconclusive , meaning they do not give a definite answer, and do not give the researcher clues abt the persons wider attitudes or opinions

26
Q

Internally-soured information

A

The data, statistics and research that a business has accumulated in the past, such as past sales.

27
Q

Externally-sourced information

A

Information published by people or organisations that are not related to the business, including government agencies, industry, ad trade associations, trade unions, Chambers of Commerce and media sources such as newspapers

28
Q

Office of National Statistics

A

Government agency that gathers and analyses data about people in the UK. This includes - social trends
- regional trends

29
Q

Source

A

A place, person or thing, such as a book, or report, that can be used in research

30
Q

Chamber of commerce

A

A local association that promotes the interests of businesses in a county or region

31
Q

Trade association

A

Organisation founded and funded by businesses that operate in a specific industry

32
Q

Analysis

A

The process of looking at data to identify patterns or trends

33
Q

Qualitative data

A

Descriptive data that cannot be measured in numbers

34
Q

Quantitive data

A

Numerical data

35
Q

Uses of qualitative data

A

To find our customers’ views on - products and services
- design and packaging
- advertising and marketing message
- price changes

36
Q

Advantages of qualitative data

A

Provides depth and detail, giving a detail, giving a detailed picture of why customers behave in a particular way
Helps a business to listen to what their customers want, rather than jumping to conclusions

37
Q

Disadvantages of qualitative data

A

Small sample of people is surveyed, so results may be biased
Responses are very subjective
Results can depend on skills of the interviewer

38
Q

Incentive

A

Something such as a payment or gift that encourages someone to do something

39
Q

Advantages of quantitive data

A

Data is easy to analyse
Numerical data provides insights into relevant trends
Make lack reliability if sample size and method is not valid

40
Q

Disadvantages of quantitative data

A

Focuses on data rather than explaining why things happen
Doesn’t explain the reasons behind numerical trends

41
Q

Advantages of using social media in collecting market research data

A

Deepen their understanding
Identify popular trends
Improve their products ad marketing
Save time conducting market research

42
Q

Validity

A

A measure of how good the design and methods of research are and suggests whether the findings of the research can be trusted.

43
Q

Reliability

A

Indication of whether the research results from a sample are representative of a wider group or the population as a whole

44
Q

Market segmentation

A

The process of dividing a target market into smaller categories by grouping together consumers with a particular need or interpret

45
Q

Examples of market segments

A

Location
Demographics
Behaviour
Lifestyle
Income
Age

46
Q

Segmentation

A

The process of breaking something up into smaller parts

47
Q

Market mapping

A

The process of creating a diagram that identifies all products in a market and maps them against two of their features

48
Q

What does a market map allow a business to do ?

A

See al the products or services in the market
Identify its competitors
Spot any gaps in the market

49
Q

Direct competitors

A

Business that sell the same type of product or service

50
Q

Example of direct competitors

A

McDonalds and Burger King are direct competitors

51
Q

Indirect competitors

A

Business that do not sell the same product or service it still find themselves in competition with one another

52
Q

Example of indirect competitiors

A

Ferry, coach, plane

53
Q

SWOT analysis

A

A study undertaken by a business to identify the strengths and weaknesses, opportunities and threats

Edexcel GCSE Business (9 decks)

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