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Chapter 3 (Chapter 3.1 (Change in spending patterns (Economy (People spend…

- - - - Sell the product for more than it costs to make profit.
        
        Creates a willingness for customers to purchase the product
    - - Something the product has which is superior to other products that are the same.
        
        Helps customers to identify the USP easily which also adds value
    - - Be the first to enter the market or create a new product.
        
        Using market orientation to anticipate future trends
  - - - People spend money on cheaper products during recessions and they spend more on expensive stuff during times of economic growth
    - - As technology improves, older products become cheaper while newer items are more expensive
    - - The spendings depend on the fashion trends that take place during the time the people spend. People would spend money on more fashionable items to keep up
    - - The age of person could also determine what he/she would buy. If they are older they might spend money on more items that relate to survival rather than wants.
    - - People at different life stages spend their money differently (E.g Family, Single, Married)
    - - The amount of income a person receives may also determine what he/she buys.
  - - - Cheaper prices for customers
      - More choices
      - More inovation
      - More promotion
      - Higher quality
    - - Technology can allow more businesses to enter the market
      - Technology allows customers to compare products
      - Decrease in the number of customers in the market
  - - - High Sales volume
      - Low prices
      - Undifferentiated products
      - Extensive promotion
    - - Premium prices
      - Small sales volume
  - - - Administrators/Upper Managers
    - - Middle Management/Teachers/Nurses
    - - Clerical Workers/Junior Managers
    - - Electricians/Plumbers/Mechanics
    - - Agricultural Workers/Factory Workers
    - - Elderly/Part-Time workers/Unemployed
- - - - The number of customers in the market
      - The potential size of the market could reach
    - - Who current and potential customers are
      - The needs/lifestyles of different customers
    - - Expectations the customer has for the product
      - Price customers will oay
    - - Who the main competitors are
      - The market share of their competitors
  - - - Something that is measured using numbers
    - - Something that is measured by its quality
  - - - To spot potential problems in their system
        Examine how they could solve their problems by observing
    - - Obtain multiple points of view on certain product
        Get the public’s view on the product before it is produced.
    - - To see what people prefer and what they might want.
        Allows customers to give feedback on how to improve the product.
    - - Get more depth and specifics on the customer’s answers.
        You could ask forward questions after they’ve answered your primary question.
  - - - The size of the sample used will determine how accurate the research represents the overall market. A small sample size is easier and cheaper, but with fewer people surveyed, the results may not be statistically accurate as with a larger sample.
    - - The type of questions and skill of the interviewer will determine the quality of answers. People might give the answers which they think the interviewer wants to hear or not understand the questions.
    - - Using the wrong research method can result in weak data. For example, postal survey used to research teenage online gaming habits is likely to have a low response rate.
    - - Secondary data is often out of date or not focused on what a specific business wants to know. Primary data avoids this but can be expensive to collect and analyse.
    - - Careful market research is behind almost all product launches and yet 90% of all new products end in failure. While market research findings can prove of great benefit in guiding business decisions, human behaviour is unpredictable and no amount of research can allow for this.
  - - - Used to collect data in very simple form
    - - Used to compare 2 or more sets of data. Visually simple and easy to understand
    - - Shows relationships between two variables. Can be drawn as straight lines or curves
    - - Pie Charts show the proportion