1.2

• What is the first customer need mentioned?

  Price
• How does income affect customer needs?

  It determines the price of products needed
• What do customers prefer regarding value for money?

  Good value for money
• What is a significant factor in customer convenience?

  Accessibility of products
• Why is choice important for customers?

  It allows shopping around for better options
• How does competition affect product improvement?

  It forces businesses to enhance their products
• What is the subjective nature of customer needs?

  They vary based on individual preferences
• Why is understanding customer needs important for businesses?

  To identify and attract potential customers
• What is the significance of repeat customers?

  They contribute to customer loyalty and sales
• What can a good customer experience lead to?

  Increased chances of repeat purchases
• What is the first type of market research mentioned?

  Primary research
• What is the purpose of market research?

  To identify customer needs and gaps
• How does primary research differ from secondary research?

  Primary is firsthand, secondary is secondhand
• What is an example of primary research?

  Surveys conducted by the business
• What is a focus group?

  A small group for in-depth discussion
• What is observation in primary research?

  Watching consumers interact with products
• What is secondary research?

  Research already conducted by others
• What is a potential drawback of secondary research?

  It may lack specificity to the business
• What types of data are there in market research?

  Qualitative and quantitative data
• What is qualitative data?

  Words and thoughts from participants
• What is quantitative data?

  Numeric statistical data
• Why is sample size important in research?

  It affects the representativeness of results
• What is research bias?

  Influence of the audience on results
• What is a market segment?

  A smaller section of the population
• What is a niche market?

  A smaller targeted section of the market
• What is a mass market?

  A larger segment targeting the majority
• What are the key customer needs identified in the material?

  • Price
  • Convenience
  • Choice
  • Quality
• What are the purposes of market research?

  1. Identify customer needs
  2. Find gaps in the market
  3. Reduce risk
  4. Assist decision making
• What are the differences between primary and secondary research?

  • Primary: firsthand, specific to business
  • Secondary: secondhand, may lack specificity
• What are the types of data in market research?

  • Qualitative: words and thoughts
  • Quantitative: numeric statistical data
• What factors should be considered in market research?

  • Sample size
  • Research bias
  • Audience selection
• What are the characteristics of niche and mass markets?

  • Niche: smaller, targeted audience
  • Mass: larger, broader audience
• Why might the audience not provide a valid outlook during market research?

  They may have biases or limited perspectives
• What criteria can be used to identify market segments?

  • Location
  • Demographics (age, ethnicity, religion)
  • Lifestyle (tastes and trends)
  • Income levels
• Why is location important in market segmentation?

  It determines where products are sold effectively
• How can demographics influence market targeting?

  They help identify specific customer groups
• What type of products might target specific age groups?

  Mobility scooters for older adults
• How does lifestyle affect market segmentation?

  Lifestyle influences product popularity and sales
• What is an example of a product targeted based on location?

  Newcastle United shirts in Newcastle
• Why is income a factor in market segmentation?

  It affects purchasing power and product affordability