topic 9

Question 1

Cashback

Answer 1

A service offered by some retailers when customers pay by card. The retailer gives the customer cash and debits the amount of cash handed over from the customer’s payment card

Question 2

closed question

Answer 2

A question format that limits respondents’ answers, for example to ‘yes’ or ‘no

Question 3

Cold calling

Answer 3

Telephone calls that were not requested by the person being called, commonly used for market research and sales

Question 4

External secondary data

Answer 4

Data published by organisations such as commercial research companies (eg Mintel International Group Ltd and Savanta), which providers use for their own research

Question 5

Focus group

Answer 5

A small group of customers or potential customers brought together by the market research company or by the provider itself to discuss how they feel about a particular product, market or service

Question 6

Internal secondary data

Answer 6

Data produced by the provider that was once primary data, eg surveys carried out or financial statements prepared

Question 7

Interviews

Answer 7

A two-way process for collecting information from customers,usually face to face or over the telephone

Question 8

Market research

Answer 8

the action or activity of gathering information about consumers’ needs and preferences

Question 9

Market segmentation

Answer 9

Splitting up the whole market into smaller segments within which customers share particular features, eg income, age, lifestyle.

Question 10

marketing mix

Answer 10

The combination of factors that attracts and retains customers, eg supplying the right product at the right price and promoting it effectively. Sometimes summarised as the 4Ps or 7Ps

Question 11

Mystery shopping

Answer 11

using researchers to pose as customers, either in person or via telephone or electronic media, to check the quality of service that a business provides

Question 12

Open-ended questions

Answer 12

Questions that cannot be answered with just ‘yes’ or ‘no’, designed to get the respondent to open up about their thoughts and feelings

Question 13

Packaged account

Answer 13

A current account that offers extra benefits, such as travel
insurance, for which the account holder pays a monthly fee

Question 14

Primary research

Answer 14

Original research carried out by the provider itself and tailored to its own specifications

Question 15

Qualitative research

Answer 15

Research based on gathering and analysing people’s feelings and opinions

Question 16

Quantitative research

Answer 16

Research based on gathering and analysing statistics

Question 17

Sampling

Answer 17

Choosing a certain number of people (the sample) to represent the total population. Samples are often carefully selected to make sure the mix of ages, gender, ethnicity, lifestyle, etc, is proportional to the wider customer base

Question 18

Secondary research

Answer 18

Research that is based on data that already exists (see external and internal secondary data

Question 19

Telematics technology

Answer 19

technology that allows personalized insurance policies to be created based on when and how you drive. Also known as black box insurance

Question 20

Unique selling point (USP)

Answer 20

An aspect of a brand that makes it different from and better than the brands of other providers

Question 21

inadequate financial capability is an example of:

Answer 21

inherent risk

Question 22

In relation to interest-free credit card adverts, most headline product descriptions make no mention of:

Answer 22

a fee for transferring a balance from another card

Question 23

Cashback credit cards particularly encourage consumers to:

Answer 23

spend more to obtain a better discount

Question 24

Financial products specifically aimed at retaining customers are:

Answer 24

reward credit cards

Question 25

Cards that offer cashbacks and rewards:

Answer 25

have the cost of additional benefits built into the charging structure

Question 26

An example of external secondary data is:

Answer 26

a financial statement from a competitor

Question 27

Complexity and opacity in a product:

Answer 27

increase the risk of mis-selling

Question 28

The institution that interprets EU law is known as the

Answer 28

European Court of Justice

Question 29

Many savings account providers offer introductory bonus rates to try to attract new customers. This is a response to:

Answer 29

economic change

Question 30

Multi-car insurance is an example of the insurance companies responding to changing:

Answer 30

social trends

Question 31

Providers need to keep up to date with general public opinion about the financial services sector and banks in particular.

Answer 31

true

Question 32

Mystery shopping is an example of secondary market research

Answer 32

false

Question 33

Mintel International Group Ltd and Savanta are examples of commercial market research companies.

Answer 33

True