Business Studies - Common Test 2

Front 1

primary research

Back 1

the collection of first hand (original) data that is directly related to the needs of the business.

Front 2

secondary research

Back 2

the collection of data from second-hand sources. The
original research was not done for the specific benefit of the business.

Front 3

desk research

Back 3

collection of information, already available in print or on the internet.

Front 4

field research

Back 4

collection of information outside of a laboratory or workplace setting.

Front 5

dynamic pricing

Back 5

pricing which reflects the supply and demand for a
product, e.g. an airline may increase prices as the number of seats on a flight gets close to full capacity

Front 6

calculating elasticity of demand

Back 6

%change in quantity / % change in price

Front 7

inelastic demand

Back 7

where a change in price causes a less than proportionate change in quantity demanded, e.g. price increases by 10%, quantity sold falls by 5%

Front 8

elastic demand

Back 8

where a change in price causes a more than proportionate change in quantity demanded e.g. price increases by 10%, quantity sold falls by 20%

Front 9

market

Back 9

where buyers and sellers get together to trade goods and services. Can be a physical place e.g. a retail shop, or a virtual place e.g. sharemarket.

Front 10

equilibrium price

Back 10

the price where the supply of a good or service matches its demand

Front 11

factors influencing supply

Back 11

costs of production, level of technology, number of businesses in market, productivity of workers

Front 12

factors influencing demand

Back 12

incomes, price of substitutes, price of complements, tastes and fashions, population

Front 13

market share

Back 13

(sales of business/total industry sales) * 100

Front 14

niche market

Back 14

a small segment of a larger market. To target a niche market means to identify and develop products that will suit this niche

Front 15

mass marketing

Back 15

selling the same products to the whole market with no attempt to target groups within it.

Front 16

market segmentation

Back 16

identifying different groups (segments) within a market and targeting different products / services to them. EG

Front 17

product (or service) differentiation

Back 17

making your product distinctive so that it stands out from competitors products in consumers perceptions. EG

Front 18

product portfolio

Back 18

the mix of products that a business has. Ideally, they will have products at different stages of the product life cycle.

Front 19

market research

Back 19

the process of collecting, recording, and analyzing data about the customers, competitors, and the market.

Front 20

sample

Back 20

the group of people taking part in market research who have been selected to be representative of the overall target market

Front 21

random sampling

Back 21

where each member of the target population has an equal chance of being included in the sample

Front 22

stratified sampling

Back 22

dividing the target population into subgroups, e.g. by age and gender. If female 15 - 19 year olds are 20% of the market, 20% of the sample should be //randomly selected// female 15 - 19 year olds

Front 23

quota sampling

Back 23

dividing the target population into subgroups, e.g. by age and gender. If female 15 - 19 year olds are 20% of the market, 20% of the sample should be female 15 - 19 year olds but the interviewer //can then select anyone// who meets that criteria.

Front 24

limitations of sampling

Back 24

cost vs accuracy, interviewer bias, leading questions

Front 25

4P's

Back 25

product, price, promotion, place

Front 26

4C's

Back 26

customer solution, cost to customer, communication
with customer, convenience to customer

Front 27

new product pricing strategies

Back 27

penetration pricing, price skimming,

Front 28

other pricing methods

Back 28

cost-plus pricing, competitive pricing, dynamic pricing,
loss leaders

Front 29

factors influencing elasticity

Back 29

number of substitutes, whether it is a necessity, proportion of consumers income

Front 30

above the line promotion

Back 30

promotion that is paid for (to a third party) e.g. advertising on TV, radio

Front 31

below the line promotion

Back 31

promotion that is based on short-term incentives to purchase and does not involve payment to a media business, e.g. discount coupons, loyalty programs

Front 32

channel of distribution

Back 32

the way in which a product passes from producer to final
consumer. Could be direct or include a wholesaler and
retailer.

Front 33

product positioning

Back 33

how a consumer perceives the product or service as
compared to its competitors. Could relate to price and quality

Front 34

market map

Back 34

a representation of all brands in a market in terms of two variables, e.g. price and quality,

Front 35

price elasticity of demand

Back 35

the responsiveness of demand to changes in price

Front 36

categories of elasticity

Back 36

0-1 = inelastic
1 = unitary
> 1= elastic