customers

Question 1

market led

Answer 1

Market-led businesses carry out market research. They then create new products to satisfy those consumer preferences. The business will adopt a marketing strategy designed to reach and engage those customers.

Question 2

product led

Answer 2

Product-based businesses focus on making all customers aware of their products, rather than targeting any particular customer or segment of the market. Such businesses concentrate on researching and developing.

Question 3

market led advantages

Answer 3

• very responsive to the needs of its target audience
• responsive to changing trends in the market

Question 4

market led disadvantage

Answer 4

• relies on market research which can be costly and time consuming

Question 5

product led advantages

Answer 5

• business is always looking to improve so products are better and safer
• the quality of the product is better

Question 6

product led disadvantages

Answer 6

• little market research is carried out.
• not responsive to changes in market trends.

Question 7

why is it important to study consumer behaviour?

Answer 7

• how consumers behave
• why consumer behaviour patterns change
• when consumers are most likely to purchase
• how a customer feels before and after purchasing

Question 8

routine purchase

Answer 8

Routine purchases require little involvement by the customer and are often made automatically.

Question 9

informed purchases

Answer 9

In the case of products that the consumer will have for a longer period, the consumer usually takes time to investigate the product.

Question 10

impulsive purchases

Answer 10

Impulse purchases occur when the consumer buys on the spur of the moment without prior planning or thought.

Question 11

ways a consumer can obtain information about products

Answer 11

• personal sources
• commercial sources
• public sources
• experiential sources

Question 12

market segmentation

Answer 12

A business may may segment the market for its product using demographics such as income, age, gender and occupation.