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Libf UNIT 4 > Topic nein - Market segmentation and product development > Flashcards

Topic nein - Market segmentation and product development Flashcards

1
Q

What do geographic segmentation include

A

Grouping people according to where they live

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1
Q

What do Demographic segmentation include

A

Grouping according to age, gender, occupation and income group

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2
Q

What do behavioural segmentation include

A

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

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3
Q

What characteristics do banks make current accounts based on

A

Income and wealth

Age

Loyalty

Money management needs

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4
Q

What are the benefits for a packaged account

A

Travel insurance

commision free travel-money

Home emergency cover

Cash back

Breakdown cover

Phone insurance

Identity theft protection

Exclusive interest rates

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5
Q

What does HSBC’s Premier bank account include

A

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

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6
Q

What does RBS’s Silver Account include

A

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

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7
Q

What was a criticism of packaged accounts in 2014

A

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

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8
Q

OTher criticisms of packaged accounts

A

Too expensive

Make become over insured

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9
Q

Examples of packaged accounts not paying out

A

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

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10
Q

What must providers do with packaged accounts

A

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

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11
Q

What is barclays “Features Store”

A

Consumers can choose what add ons they want for their account

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12
Q

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

A

3%

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13
Q

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

A

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

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14
Q

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

A

15 months

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15
Q

What segmentation of people is cashback aimed at

A

People who spend more money on personal consumption

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16
Q

What does a barclays reward card contain

A

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

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17
Q

What does sainsburys “Nectar credit card” contain

A

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

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18
Q

What does sainsburys “Nectar credit card” contain

A

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

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19
Q

What is the cost of cashback and rewards

A

fee for account

Less favourable rates than other accounts

The extra sales make up for it

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20
Q

Examples of primary research

A

Questionnaires

Mystery shopping

Interviews

Focus groups

21
Q

Examples of secondary research

A

Internal secondary information

External secondary data

22
Q

Questions that should be asked if getting PPI

A

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

23
Q

What questions are asked for feedback on packaged accounts

A

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

24
Q

Example of a legal pestel analyse for banks

A

A provider must have up to date changes in legislation

25
Q

Example of a political pestel analyse for banks

A

Must be aware of regulation changes

26
Q

Example of a economic pestel analyse for banks

A

Monitor the level of unemployment

27
Q

Example of a social pestel analyse for banks

A

Keep up to date with demographic changes

28
Q

Example of a technological pestel analyse for banks

A

keep up to date with developments in cyber crime

29
Q

What is primary research also known as

A

Field research

30
Q

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

A

The questions that will be asked

The identity of people called

31
Q

What data do focus group receive

A

Qualitative

32
Q

What is a focus group and what do they do

A

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

33
Q

What data do observations receive

A

Quantitative

34
Q

What is the first and last step that mystery shoppers do

A

1st - Mystery shopper is given instructions by the firm on how to act

last - Mystery shopper prepares detailed feedback report for commissioning firm

35
Q

What is a mystery shopper

A

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

36
Q

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”

A

Mystery shopper

37
Q

What is secondary research also known as

A

Desk research

38
Q

How can internal secondary data be used

A

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

39
Q

Example of public sector organisations and government departments

A

Office for national stats (ONS)

HM Treasury

Department for Business, Energy and industrial strategy

40
Q

Examples of financial services regulators and complaints bodies

A

Bank of England
FCA
FOS
FSCS

41
Q

Examples of professional organisations

A

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

42
Q

Examples of commercial market research organisations

A

Mintel international group LTD and savanta

43
Q

Examples of competitors

A

Other:
Banks
Building Societies
Credit unions
Friendly societies
insurance companies

44
Q

Examples of the media

A

Newspapers

Journals

Magazines

45
Q

Factors of a product under development

A

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

46
Q

What is product opacity

A

When products all look the same

47
Q

Example of a complex and opaque product

A

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

48
Q

Example of a new product from political and legal changes

A

Black Boxes

49
Q

What pestel section does multi-car insurance fall under

A

Social changes

Libf UNIT 4 (18 decks)

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