DIPFS SPEC C D Unit 4 31-35

The Nectar points offered by Sainsbury's Bank, and the Freedom points offered by Barclays, are both components of a:

• community programme.

• premium banking service.

• private banking service

• rewards programme.

Which of the following could an insurance company use as a source of primary market research?

• Feedback from its customers.

• Its claims history data.

• MINTEL information.

• Trade publications.

Which of the following is the key to effective market segmentation and to meeting the needs and wants of customers? Achieving:

• differentiation.

• disintermediation.

• profitability.

• sustainability.

Which of the following is a source of external secondary data for a UK bank?

• Bank of England.

• Focus groups.

• Market research.

• Mystery shoppers.

The principle of market segmentation is that:

• all customers can find a product for their needs.

• every customer is unique and needs to be treated differently.

• new products should be developed when the organisation wants.

• new products should suit specific types of customers.

Why might a brand that is aimed at a high-income market segment succeed despite charging a higher price? It appears more:

• economic.

• equitable.

• ethical.

• exclusive.

Which of the following is not a source of primary research for a UK bank?

• Focus groups.

• Interviews.

• Past bank data.

• Questionnaires.

When a customer is transferring a credit card balance to another provider for an interest-free period, the customer is typically required to pay a fee of around:

• 1%.

• 3%.

• 5%.

• 10%.

Some insurance companies have developed a new product called ‘multi-car insurance’, reacting to a new social trend. What new social trend could cause this product development?

• Environmental concerns.

• Older generations moving back with their children.

• Technological changes.

• Young people unable to move out of their parents' home.

Which of the following 'add-ons' would not be available with a packaged current account?

• Discounts at shops.

• Life insurance.

• Mobile phone insurance.

• Travel Insurance.