Unit Test 2 Review PDF

**Unit Test 2 Review** **5 steps in the buying process - apply to a situation:** 1. 2. 3. 4. 5. Apply to a situation- 1. 2. 3. 4. 5. - - - - - - - - - **What is market research - focus on the 5 types of primary data - explain/examples** **There are five main...

**Unit Test 2 Review** **5 steps in the buying process - apply to a situation:** 1. 2. 3. 4. 5. Apply to a situation- 1. 2. 3. 4. 5. - - - - - - - - - **What is market research - focus on the 5 types of primary data - explain/examples** **There are five main types of primary data: surveys, interviews, focus groups, observations, and experiments.** **Surveys**-consist of asking a defined group of questions to a large number of people. There are various ways to conduct surveys: - Online - Over the phone - Face-to-face **Example**:businesses launching new products often rely on surveys. The purposes of surveys include: - Assessing consumer interest - Understanding preferences - Determining how much people are ready to spend **Interviews:i**nterviews help researchers gain a deeper insight into what consumers think and why they think that way. These discussions, held one-on-one or in small groups, let researchers dive into complicated subjects and ask more questions for better understanding. **Example**, a tech company might interview users after they try out a new app to find out what works well and what doesn't in terms of usability and features. **focus groups**-Focus groups are a way to gather a variety of people to talk about a product or service in a structured environment. This method is great for getting detailed conversations, which helps researchers learn more about how consumers feel and interact with each other. **For example**, a clothing store might set up focus groups to see how people respond to a new clothing collection, using the group discussions to figure out what styles, fits, and prices people like best. **observations-**Observations are about watching people in their everyday settings to learn about their behaviors and likes without actually talking to them. This approach can really show how consumers interact with products or services as they use them. **For example**, a home goods company could watch shoppers as they move through a store, paying attention to which displays catch their eye and what they end up buying. This information can be super helpful for shaping their marketing strategies. **experiments** are carried out to examine ideas in a controlled setting, helping companies understand how different changes could influence what consumers do. This might include A/B testing various marketing messages or packaging styles to find out which one connects better with shoppers. **Example**; , a software company could test two different pricing options to see which one results in more people making a purchase. - **Explain** :Competitive advantage means the qualities or situations that help a company do better tha n its rivals. This can come from different areas, such as **pricing,** p**roduct variety,** **brand image,** and **customer support.** By using these strengths, a business can increase its **sales, profits,** and **market presence,** helping it stay strong in its field. A strong competitive advantage can create a shield that keeps competitors at bay, making it hard for new players to enter the market. **Types:** **Cost leadership** -means being the cheapest producer in a market. This lets a company sell its products for less than its rivals while still making a profit **Example:** Walmart, which keeps its costs low by using large-scale operations and effective supply chain management. **Differentiation** -strategy involves a company providing unique products or services that are seen as better in quality or value. **Example -** Apple, which distinguishes itself with innovative technology and premium design. ***Focus Strategy*-** where a company targets a specific market niche, catering to the specific needs of that segment. **Example :**Ferrari focuses on high-end luxury sports cars, attracting a niche customer base willing to pay a premium for exclusivity and performance. - **Consumer socialization** is the way people, especially kids and teens, learn how to be good consumers in the market. This learning is shaped by different influences like family, friends, media, and cultural groups. **example:**A kid can develop brand preferences by noticing what their family does, like seeing a parent always buy the same kind of cereal. When the child sees this, they might start to feel comfortable and trust that brand, which can lead to them sticking with it in the future. Plus, social media is really important today because influencers and friends can greatly influence how young people view and choose brands. **Brand loyalty-**Consumer loyalty is the habit of buying the same brand repeatedly, even when there are other options available. This loyalty can arise from different reasons, such as good past experiences, emotional ties, or the social status linked to a brand. **for example,** Apple has built a strong following by consistently offering high-quality products, innovative technology, and a brand image that appeals to its customers. Many users become advocates for Apple, enthusiastically recommending its products to others, which strengthens their loyalty. Furthermore, loyalty programs from airlines or retail stores can boost this commitment by offering rewards that encourage customers to buy again. - **perfect competition** - **Perfect Competition** - is a market characterized by a large number of small companies, none of whom have an opportunity for market control. **Example -**Local markets are filled with fresh fruits and vegetables. In these places, various sellers provide similar products, mainly competing on how much they charge and the quality they offer. The clear pricing and the ability for customers to switch between different sellers keep the competition alive. In this environment, new businesses can easily enter the market if they think they can provide better prices or higher quality items, which helps lower prices and benefits consumers. **Monopolistic:** is a market consisting of a large number of companies, each having an opportunity for a degree of market control **Example:** For example, McDonald\'s is famous for its Big Macs and a welcoming vibe for families, while Burger King highlights its flame-grilled burgers and takes a more competitive approach in its ads. **Oligopoly**: is a market with a small number of large companies, each with a substantial amount of market control. **Example**:In the car industry, a handful of big companies like Ford, GM, and Toyota hold a large share of the market. These companies are in constant competition with one another in areas like technology, safety features, and design. At the same time, they try to steer clear of intense price wars that could hurt their profits. **Monopoly:** is a market in which a single company has complete market control. **Example**:Bell, Rogers, and Telus dominate the market.These three large companies control a big portion of the industry, leading to reduced competition and higher costs for consumers. While there are some smaller and newer companies attempting to break in, the influence of these three giants remains strong. They have developed extensive networks and have many loyal customers over time. This dominance can result in less innovation and slower progress in services, as the typical competition that drives improvements in quality and pricing is weaker. - **Crown corporation:** **Define**:Crown corporations are businesses owned by the government that work in different parts of the economy. They are created by either the federal or provincial government to help achieve public goals while also being financially independent. Their main purpose is to provide important services, fix market problems, or help develop certain areas. Since they are government-owned, Crown corporations have a special mission that focuses on the public\'s needs, which makes them operate differently from private companies. **Explain** :they can take on projects that private investors might avoid because they don't promise high profits or come with more risks. For example, many Crown corporations in Canada work in areas like energy, transportation, and telecommunications, where they can offer vital services to places that might not get them otherwise. They are important for building infrastructure, making sure that services like public transport, electricity, and broadcasting are accessible to everyone, even if these projects aren't very profitable **Examples Of Provincial corporations** - - - - - **Examples of federal corporations** - - - - - Command economy, market economy, mixed economy, traditional - define, examples **Economic Systems**: Frameworks that guide how resources are allocated, goods/services are produced, and wealth is distributed in a society. - **Traditional Economy**: - - - **Market Economy**: - - - **Command Economy**: - - - **Mixed Economy**: - - - - - - - - - - - - - - - - Acronym what they stand for purpose what they do ---------- ------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------- -- OSC The Ontario Cannabis Store ensure public health and safety. By overseeing the supply chain and enforcing strict quality standards, OCS aims to reduce risks related to cannabis use, like product contamination or unsafe practices. They also promote responsible marketing, offering educational resources to help consumers make informed choices about cannabis. promoting a safe retail environment, offering a variety of cannabis products, and working with licensed producers to ensure a steady supply. EI Employment Insurance assist Canadians who are unemployed by offering a safety net that covers their living expenses while they search for new jobs. This support plays a crucial role in Canada's social safety system, as it helps maintain economic stability by allowing people to continue spending money during difficult times. to provide temporary financial assistance to individuals who have lost their jobs through no fault of their own. CDIC Canada Deposit Insurance Corporation Protect depositors by providing insurance for their eligible deposits at member financial institutions such as banks, credit unions, and trust companies. This insurance offers Canadians peace of mind, ensuring that if a financial institution goes under, their deposits are safe up to a certain limit. making sure Canada's financial system is stable and secure. **CMHC** Canada Mortgage and Housing Corporation, Supporting affordable and accessible housing for everyone in Canada. One main role is to give mortgage insurance to lenders. This helps them offer loans with smaller down payments, making it easier for Canadians to own homes. **LCBO** Liquor Control Board of Ontario to oversee and manage the sale and distribution of alcoholic drinks in Ontario. This includes handling a large network of stores that offer a variety of wines, spirits, and beers from both local and international sources. Encouraging responsible drinking is important. This involves efforts to teach people about the dangers of drinking too much and creating programs for different groups in the community. The board is not just a seller; it also provides a major income source for the provincial government, bringing in billions each year from taxes and profits. This money is used to support vital public services like healthcare and education, showing how the LCBO helps the community as a whole. ---------- --------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -- **OLG** Lottery and Gaming Corporation The goal is to create a controlled setting for different gambling services, such as lottery games, casino activities, and online gaming. OLG focuses on transparency and integrity to make sure that all gaming is done fairly and responsibly. The provincial government earns revenue from OLG, with a large part of this money going to public services like health care, education, and community projects. Besides its financial support, OLG focuses on responsible gaming by providing resources for those facing gambling problems. Through awareness campaigns and collaborations with local organizations, OLG aims to create a safer gaming atmosphere and promote responsible gambling habits among players. APR Annual Percentage Rate To help borrowers easily compare different loan options, a standardized measure is needed. This ensures clarity in the lending process. The APR includes not only the interest rate but also any extra fees or costs related to the loan, giving a fuller view of the total borrowing cost. To make it easier for people to compare different loans, This will make the lending process clearer. The APR, or Annual Percentage Rate, shows not just the interest rate but also any additional fees or costs that come with the loan. This way, borrowers can see the complete picture of how much they will actually pay. OAC \"Ontario Agricultural College To prepare the future leaders and researchers in agriculture, we need to give them the knowledge and skills they require to solve the problems that the agricultural industry is facing. the OAC offers a range of undergraduate and graduate programs, as well as research opportunities that address key issues such as food security, sustainable farming practices, and agricultural technology. - The Consumer Protection Act makes it illegal for most retail gift cards to have an expiration date. This means you can use a gift card whenever you want, and it will still be worth its full amount. However, 2 exceptions ton expiration dates are \- gift cards for a specific service (like a massage at a spa, which might expire if not used in time) \- gift cards given for charity purposes. - - Harmonized Sales Tax (HST) is added to your purchase based on what you are buying. It consists of a 5% federal tax and an 8% provincial tax, but it is listed on invoices as a straight 13%. - The Harmonized Sales Tax (HST) is added to your purchase based on what you are buying. - No longer has a cost - A cooling-off period is a set time that lets consumers think over their choices after signing certain contracts, like gym memberships. Gyms in Ontario must inform clients about their cooling-off rights when they sign up, helping consumers understand their options before making a long-term financial commitment. - - - - - - - - - - - **T**op of Mind Awareness (TOMA) is a marketing idea that describes the first brand that pops into a person\'s head when they think about a certain type of product or service. This kind of awareness is super important for brands that want to be leaders in their market because it often influences what people prefer and what they decide to buy. The stronger the TOMA, the more likely that brand will make sales, since people usually choose familiar names when they need to make quick choices. This shows how important it is for brands to leave a lasting impression on consumers, which can be done through good branding, catchy ads, and keeping in touch with customers **EXAMPLES:** 1. 2. - **direct competition -**Direct competition happens when two or more companies sell products or services that are very alike and aim for the same group of customers. A great example of this is the competition between Domino\'s Pizza and Papa John\'s. Both of these brands focus on delivering pizza and other similar foods, trying to attract customers who care about convenience, taste, and quality. Their menus are quite similar, which means that customers often decide based on special offers, delivery speed, and which brand they prefer. Because of this competition, both companies have to keep coming up with new ideas to stay important in a market where what customers want can change quickly. Products that are very similar -EXAMPLES: Domino Pizza and Papa Joe's/ McDonald's and Burger King **indirect competition** - all those products that you might buy with your discretionary income - pizza, clothes, games, etc. Indirect competition involves different products and services that compete for the money consumers have to spend on non-essential items, affecting their buying choices beyond just direct rivals in the same market. For instance, when deciding between ordering a pizza from Domino\'s or a burger from Burger King, both are fighting for your limited budget for treats. Likewise, if you decide to eat at McDonald\'s, that could reduce the cash you have left for takeout from Papa Joe\'s. These dining options show that businesses are not only up against similar products but also against a wide range of entertainment and leisure activities that can take up consumers\' spending, like clothes, video games, or movie tickets. **EXAMPLES:** Domino\'s aand Burger King/ McDonald's and Papa Joes - **Quantitative Research** - - EXAMPLES- these questions are designed to collect numerical data for statistical analysis, which helps in understanding consumer behavior, preferences, and market trends- (which focuses on measuring data and identifying trends) 1. 2. - - Qualitative research questions play a crucial role in examining the complexities of human experiences, behaviors, and social issues. Qualitative research aims to explore the \"why\" and \"how\" behind certain actions and beliefs. Creating effective qualitative research questions typically involves crafting open-ended inquiries that allow participants to express their thoughts, feelings, and experiences in their own words. **EXAMPLES:** 1\. In what ways does your use of social media affect your relationships with friends and family?\" **2.** What do you think is the most important factor when choosing a product? - The asterisk (\*) in ads is really important for making sure that both advertisers and consumers understand each other. It usually points to extra information or footnotes that explain things that might not be clear in the main part of the ad. For example, if a product is shown at a lower price, the asterisk often leads to details about the offer, like how long it lasts or who can actually get the deal. This helps avoid confusion and makes sure customers know what to expect. On the flip side, using an asterisk can raise questions about how fair advertising is. While it gives important information, some advertisers might put the asterisk in places that are hard to see, making it easy to miss important rules. This can make it tough for consumers who need to look closely to understand what they're agreeing to. So, the asterisk has two sides: it can help people learn more, but it can also hide important facts if not used clearly. Where and how it's used can really change how people view a brand and whether they think it's being honest in its advertising. **Test Format:** - - - -