firms to quickly study a segment of the target market and test new ideas.
•Cons: An issue associated with the quality of online market research has
been how representative the sample is. The online respondents do not
represent the population at large, as low-income households and older
households are under-represented. There is more of a concern over
controlling who is participating in online market research.
13.What are some common survey errors?
•The major problem with sampling is the risk of non-response error or
participation bias, which occurs when a particular customer group is under or
over represented in a sample. A more general problem is that households are
tired of being duped by sales pitches that pretend to be a market research
study, online and offline.
14.What is Habitual Shopping? How does Starbucks encourage habitual
shopping? Is there a difference between habitual shopping and brand
•Habitual shopping is having a habit of shopping usually for stuff you don’t
even need. What has worked in the past (rewarded us) is likely to work again
(reward us again) in the future. Habits allow us to save time making
decisions and to be thinking of other things as we do them. Habitual
shopping routines can often be executed more efficiently than new
behaviours. It provides a sense of discipline, order and control in our lives.
•Brand loyalty, in marketing, consists of a consumer's commitment to
repurchase or otherwise continue using the brand and can be demonstrated
by repeated buying of a product or service or other positive behaviors such as
word of mouth advocacy.
15.What is Recreational Shopping?
•Evolution has also endowed us with curiosity and boredom, the yang to the
ying of mindless shopping. This often drives us to recreational shop the malls
and “curiosity” stores. An important recreational aspect of such hobbies is
shopping for supplies or to see what is new and improved.
16.What is Computer Based Expert Purchasing? What kind of organizations
uses it today?
•For some purchases undertaken by very large companies or governments, it
is even possible to develop computer based expert systems that guide a
purchasing officer through a purchase decision. Future expert systems are
likely to integrate information from production that rates competing
suppliers in terms of defect rates within individual order batches, on-time
delivery and other performance criteria.
•Company shopping behaviour can be viewed from two perspectives: the
engineering-user view and the purchasing buyer view. This is because both
perspectives are likely to be encountered in the different individuals the team
has to deal with and satisfy in the buying organization.
17.Define Supply Chain Management. Why is it so incredibly important
businesses utilize supply chain management strategies today?
•In an attempt to become more competitive in their markets, many
manufacturers are now reaching back up the supply channel to help their
suppliers develop more innovative materials and components, establish more
efficient production processes and produce a product that exceeds the buyers’
desired quality and performance specifications.