Topic nein - Market segmentation and product development

Question 1

What do geographic segmentation include

Answer 1

Grouping people according to where they live

Question 1

What do Demographic segmentation include

Answer 1

Grouping according to age, gender, occupation and income group

Question 2

What do behavioural segmentation include

Answer 2

Grouping according to service, usage, loyalty ans whether people buy on impulse

Question 3

What characteristics do banks make current accounts based on

Answer 3

Income and wealth

Age

Loyalty

Money management needs

Question 4

What are the benefits for a packaged account

Answer 4

Travel insurance

commision free travel-money

Home emergency cover

Cash back

Breakdown cover

Phone insurance

Identity theft protection

Exclusive interest rates

Question 5

What does HSBC’s Premier bank account include

Answer 5

Relationship management, worldwide travel insurance, worldwide cash withdrawals and better mortgage, loan and saving rates

Question 6

What does RBS’s Silver Account include

Answer 6

European travel insurance, phone insurance, good rates for travel money, and discounts on meals and cinema tickets

Question 7

What was a criticism of packaged accounts in 2014

Answer 7

People where paying for benefits they didn’t know they had and didn’t want

Question 8

OTher criticisms of packaged accounts

Answer 8

Too expensive

Make become over insured

Question 9

Examples of packaged accounts not paying out

Answer 9

Phone cover often doesn’t cover the newest phones, like an iphone

Travel insurance can have terms about age, pensioners can’t claim through it

Question 10

What must providers do with packaged accounts

Answer 10

Check the consumer can actually claim the policy’s it offers

Send each customer a pamphlet every 12 months showing the benefits they get

Ensures that the package is right for the consumer

Question 11

What is barclays “Features Store”

Answer 11

Consumers can choose what add ons they want for their account

Question 12

What is the typical fee paid on a balance transfer with an interest-free account

Answer 12

3%

Question 13

what are the common terms and conditions for interest-free credit card balance transfers

Answer 13

The earn the promotion rates people must stay in their limits

They must pay of the amount that they transferred in the agreed period of months

Question 14

How long is the average interest free period on a credit card

Answer 14

15 months

Question 15

What segmentation of people is cashback aimed at

Answer 15

People who spend more money on personal consumption

Question 16

What does a barclays reward card contain

Answer 16

a credit card, 0.25% cashback on certain purchases, discounts on entertainment tickets, access to ticket presales and attention entertainment venues

Question 17

What does sainsburys “Nectar credit card” contain

Answer 17

Allows customers to earn nectar points, these can be exchanged for goods and services

Question 18

What does sainsburys “Nectar credit card” contain

Answer 18

Allows customers to earn nectar points, these can be exchanged for goods and services

Question 19

What is the cost of cashback and rewards

Answer 19

fee for account

Less favourable rates than other accounts

The extra sales make up for it

Question 20

Examples of primary research

Answer 20

Questionnaires

Mystery shopping

Interviews

Focus groups

Question 21

Examples of secondary research

Answer 21

Internal secondary information

External secondary data

Question 22

Questions that should be asked if getting PPI

Answer 22

How much money do you owe

Are you employed or self-employed

How much of your income do you spend on loan repayments

How much could you spend on this policy

Question 23

What questions are asked for feedback on packaged accounts

Answer 23

how satisfied are you with the account

How likely are you to be overdrawn

Do you think overdraft prices are too high or low

Would you prefer a simpler account that charged no fee

Question 24

Example of a legal pestel analyse for banks

Answer 24

A provider must have up to date changes in legislation

Question 25

Example of a political pestel analyse for banks

Answer 25

Must be aware of regulation changes

Question 26

Example of a economic pestel analyse for banks

Answer 26

Monitor the level of unemployment

Question 27

Example of a social pestel analyse for banks

Answer 27

Keep up to date with demographic changes

Question 28

Example of a technological pestel analyse for banks

Answer 28

keep up to date with developments in cyber crime

Question 29

What is primary research also known as

Answer 29

Field research

Question 30

What 2 issues are taken into account when designing a script for an interview

Answer 30

The questions that will be asked The identity of people called

Question 31

What data do focus group receive

Answer 31

Qualitative

Question 32

What is a focus group and what do they do

Answer 32

A group of people will meet up and discuss a product together, they will then send the provider a report of the things they talked about

Question 33

What data do observations receive

Answer 33

Quantitative

Question 34

What is the first and last step that mystery shoppers do

Answer 34

1st - Mystery shopper is given instructions by the firm on how to act last - Mystery shopper prepares detailed feedback report for commissioning firm

Question 35

What is a mystery shopper

Answer 35

A way where a firm will send someone in pretending they are a customer to see how their experience and what the problems are.

Question 36

What type of research did the fca describe as " useful way of bridging the gap between supervisory reports and information we receive from the customer"

Answer 36

Mystery shopper

Question 37

What is secondary research also known as

Answer 37

Desk research

Question 38

How can internal secondary data be used

Answer 38

Sales figure scan be compared to find trends The marketing department can see how effective they have been As financial data is mostly online providers can see how consumer use products, so they can target future promotions An insurance study can use past claims to analyse its risk in the future

Question 39

Example of public sector organisations and government departments

Answer 39

Office for national stats (ONS) HM Treasury Department for Business, Energy and industrial strategy

Question 40

Examples of financial services regulators and complaints bodies

Answer 40

Bank of England FCA FOS FSCS

Question 41

Examples of professional organisations

Answer 41

The trade associations: UK Finance Building Societies Association Association of british credit unions Ltd Association of British Insurers

Question 42

Examples of commercial market research organisations

Answer 42

Mintel international group LTD and savanta

Question 43

Examples of competitors

Answer 43

Other: Banks Building Societies Credit unions Friendly societies insurance companies

Question 44

Examples of the media

Answer 44

Newspapers Journals Magazines

Question 45

Factors of a product under development

Answer 45

An entirely new product that satisfies a new customers needs/wants A product that satisfies an existing want or need An existing product but slightly modified or presented in a new way An existing product but with additional products

Question 46

What is product opacity

Answer 46

When products all look the same

Question 47

Example of a complex and opaque product

Answer 47

the interest rate switch: A small business customer would pay a lower rate of interest on a business loan if the general bank rate was high and if the general rate was low, the business loan rate increases

Question 48

Example of a new product from political and legal changes

Answer 48

Black Boxes

Question 49

What pestel section does multi-car insurance fall under

Answer 49

Social changes