Maximum 3 marks 4 personal preference of the

Info icon This preview shows pages 9–12. Sign up to view the full content.

View Full Document Right Arrow Icon
(Maximum 3 marks) 4 Personal preference of the entrepreneur The entrepreneur may choose to locate his business in his home community or choose not to do so. (1) These preferences could mean the choice of a local site or a location offering a lifestyle advantage. Some entrepreneurs might, for instance, prefer establishing a sea-food restaurant close to the sea, while others may
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
10 MNE3701/201 wish to exploit the need for seafood in an urban or metropolitan area. (1) 5 Site availability and costs This is normally based on the nature of the business, either close to the customer (e.g. retail) or the supplier (e.g. supplier of intermediate goods). (1) The cost of a site will influence an entrepreneur’s profit margin and is therefore a fundamental factor in the location decision. (1) Leasing an operating space is normally advisable because firstly, a large cash outlay is avoided, and secondly, avoiding substantial investment reduces risk. (1) 1.2 Objectives of a business plan (2) Refer to page 4 of the study guide and page 152 of Moore et al. Any two objectives To identify the nature and the context of the business opportunity (1) To present the approach the entrepreneur plans to use to exploit the opportunity (1) To recognise factors that will determine whether the venture will be successful (1) 1.3 Psychological and social influences on consumer behaviour: (8) Refer to pages 363 to 365 of Moore et al and page 84 of the study guide 1 mark for explaining each 1 Needs Needs are the starting point for all behaviour. The four categories of needs are: physiological, social, psychological and spiritual needs. Various needs operate simultaneously,
Image of page 10
11 MNE3701/201 making it difficult to determine which need is being satisfied by a specific product or service. (1) 2 Perceptions It encompasses those individual processes that give meaning to the stimuli confronting consumers. Perception is a two-sided coin. It depends on the characteristics of both the stimulus and the perceiver. Consumers attempt to manage huge quantities of incoming stimuli through perceptual categorization, which is a process by which things that are similar are perceived as belonging together. (1) 3 Motivations These are goal directed forces that organise and give direction to the tension caused by unsatisfied needs. Marketers cannot create needs, but they can offer unique motivations to consumers. If an acceptable reason for purchasing a product or service is provided, it will probably be internalised by the consumer as a motivating factor. (1) 4 Attitudes An attitude is an enduring opinion, based on a combination of knowledge, feeling and behavioural tendency. An attitude may act as an obstacle or catalyst in bringing a customer to a product. (1) 5 Culture Culture refers to the behavioural patterns and values that characterise a group of customers in a target market. These patterns and beliefs have a tremendous impact on the purchase and use of products. (1) 6 Social class Social classes are divisions within a society that have different levels of social prestige. Social class systems have
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern