M Customers

Question 1

Describe market led

Answer 1

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

Question 2

Benefits of market led

Answer 2

• 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

Question 3

Costs of market led

Answer 3

-Market research can be very time consuming and expensive to conduct

Question 4

Describe product led

Answer 4

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.

Question 5

Benefits of product led

Answer 5

• Products are often very innovative and high quality

- Products will face little competition

Question 6

Costs of product led

Answer 6

• 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.

Question 7

What are the different consumer behaviours?

Answer 7

• Habitual/routine
• Impulsive
• Informed

Question 8

Describe habitual/routine purchases

Answer 8

A purchase that is made often without much interference from the business. These are normally essential items such as food, toiletries, etc.

Question 9

Describe impulsive purchases

Answer 9

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.

Question 10

Describe informed purchases

Answer 10

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.