Customers Flashcards
What is market led?
-the business develops products based on customers needs and wants
-thorough market research is done to find out customers wants
-often in highly competitive markets
What is product led?
-business focuses on the production process and seeks to make products which are viewed as high quality
-no market research
-assume product will be best on market
What is a routine/habitual consumer?
-repeatedly purchase the same products
-low involvement in a purchase —> dont believe there is a significant difference between brands In given product category
What is an impulsive consumer?
-purchase on impulse, not planned purchases
-product placement is important, manufacturers who target impulse buyers need their goods to be featured prominently in shop
What is an informal consumer?
-will do research on a product prior to purchasing
-look at products details / reviews
-consider different products on offer and specifics of the product they want
What is field research?
First hand information
Primary information
New information
What are benefits of field research?
-reliable as it is first hand and can be verified
-more likely to meet the needs of the business
-info is not available to competitors
-info is up to date
What are disadvantages of field research?
-more expensive as data needs too be collected and then processed
-time consuming
What is desk research?
-looking at already collected info
Secondary info
What are benefits of desk research?
-inexpensive as the data already exists
-easy to obtain
What are disadvantages of desk research?
-info may be out of date
-available to competitors
-may contain bias
-was gathered for another purpose and so may not be specific
What are the different methods of desk research?
Sampling, random sampling and Quota sampling
What is random sampling?
Random sampling doesn’t target any specific market segment
What are benefits of random sampling?
-less chance of bias as respondents are chosen at random
-simple and quick to collect as time doesn’t need to be taken to carefully select people
What are disadvantages of random sampling?
-may not reflect the target market as it is chosen at random
-expensive as a large sample of people is needed
