M Customers Flashcards
Describe market led
When a business uses market research to find out what customers want and create a product based on this information. Market led products are very customer focused
Benefits of market led
- These products are more responsive to changes in the market
- They are in a stronger position to deal with challenges of competitors entering the market as they are fully aware of how their market operates
- There is less risk when launching the product as they business knows there is demand for that product
Costs of market led
-Market research can be very time consuming and expensive to conduct
Describe product led
When a business develops a product, focusing on the research and development of the product and not the market. They then try to sell the product with extensive promotion after it has been created.
Benefits of product led
- Products are often very innovative and high quality
- Products will face little competition
Costs of product led
- Higher risk as the needs of the market are ignored, there might be no demand for the product
- Once competition enter the market, it will be less unique.
What are the different consumer behaviours?
- Habitual/routine
- Impulsive
- Informed
Describe habitual/routine purchases
A purchase that is made often without much interference from the business. These are normally essential items such as food, toiletries, etc.
Describe impulsive purchases
A purchase that was not planned and is often caused by a promotion or because of where the product was placed. For example a chocolate bar at a till or an effective point of sale display.
Describe informed purchases
A purchase that has been extensively researched and thought over. The customer will compare different products and research the specifics. Normally an expensive long term item such as a house.
