M Customers Flashcards Preview

Higher Business Management > M Customers > Flashcards

Flashcards in M Customers Deck (10)
Loading flashcards...
1
Q

Describe market led

A

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

2
Q

Benefits of market led

A
  • 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
3
Q

Costs of market led

A

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

4
Q

Describe product led

A

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.

5
Q

Benefits of product led

A
  • Products are often very innovative and high quality

- Products will face little competition

6
Q

Costs of product led

A
  • 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.
7
Q

What are the different consumer behaviours?

A
  • Habitual/routine
  • Impulsive
  • Informed
8
Q

Describe habitual/routine purchases

A

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

9
Q

Describe impulsive purchases

A

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.

10
Q

Describe informed purchases

A

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.