Topic 1.1

Question 1

Supplier

Answer 1

A business who sells(or supplies) products to another business.

Question 2

Customer

Answer 2

The person who buys or is supplied with a product

Question 3

Consumer

Answer 3

The person who ultimately uses a product.

Question 4

Markets

Answer 4

Where buyers and sellers meet to exchange goods or services

Question 5

Customer needs

Answer 5

The wants and desire of buyers or a product or the customers of a business.

Question 6

Market research

Answer 6

The process of gaining information about customers, competitors and market trends through collecting primary and secondary data.

Question 7

Primary research

Answer 7

The gathering of new information, which has not been collected before.

Question 8

Survey

Answer 8

Research involving asking questions of people of organisation.

Question 9

Focus group

Answer 9

A group of people brought together to answer questions and discuss a product, brand or issue.

Question 10

Qualitative Data

Answer 10

Information about opinions, judgement and attitudes.

Question 11

Quantitative Data

Answer 11

Data that can be expressed as numbers and can be statistically analysed.

Question 12

Market Segments

Answer 12

Part of markets that contains a group of buyers with similar buying habits, such as age or income.

Question 13

Brand

Answer 13

A named product which customers see as being different from other products and which they can associate or identify with.

Question 14

Franchising

Answer 14

The right given one business to another to sell goods or services using it’s name.

Question 15

Franchise

Answer 15

A business that agrees to manufacture, distribute or provide a branded product, under license by a franchisor.

Question 16

Franchisor

Answer 16

The business that gives franchisees the right to sell its product in return for a fixed sum of money or a royalty payment.

Question 17

What is secondary research?

Answer 17

The process of collecting data which has been collected before

Question 18

Price sensitivity

Answer 18

When the price determines whether the product is brought or not

Question 19

Why does price need to be reasonable

Answer 19

So customers feel as if they are paying the right price

Question 20

Why does location need to be convenient

Answer 20

So customers find it easy to get to the shop

A busy location will attract more customers

Question 21

Why is a good range important

Answer 21

A good range will interest the customer and make them want to return - it allows them to buy what they want

Question 22

Why is friendly staff important

Answer 22

It gives a good impression and allows customers to ask questions and makes them more likely to return

Question 23

Why is the quality of products important

Answer 23

A good quality product will reassure the customers that the business is the right place to be. People do not pay for items which do not meet standard

Question 24

What is EPOS

Answer 24

This is monitoring tills to check the buying habits of customers

Question 25

What is interview

Answer 25

Asking a group or one to one of the target market what they think of a product

Question 26

What is survey

Answer 26

This could be face to face or via post - questions about a product that respondents fill in for you

Question 27

What is a focus group / consumer panel

Answer 27

Asking the target market questions about the product - what they think

Question 28

What is an example of observation

Answer 28

Looking at cctv to see the buying habits of customers

Question 29

What is experimentation

Answer 29

Launching a product in a certain location of the country before releasing it to everywhere else, to see if it will be successful