1.1.2 customer needs

Question 1

What customer needs?

Answer 1

1) price
2) quality
3) choice
4) convenience

Question 2

What is the importance of identifying and understanding customers

Answer 2

1) generating sales
2) business survival

Question 3

Definition: Customers’ needs

Answer 3

1) In business terms a need is a problem which customers could solve with the purchase of a product or service

2) A good business will aim to satisfy customers’ needs

Question 4

Customer needs - quality

Answer 4

1) Customers need products that are of a satisfactory quality
2) For example the more you pay for a watch the more you expect it to last, keep time, look smart and for the strap not to break

Question 5

Does quality matter?

Answer 5

Ensuring quality means making sure that products are made to a minimum standard or better. Good customer service is valuable and can lead to increased sales.

Question 6

Customer needs – product range

Answer 6

Not every customer wants the same product or service, so businesses may produce a range e.g. car models for different customer needs

Question 7

Customer needs – saving time and money

Answer 7

1) Customer convenience means saving the customer time and effort in some way
2) The task of business owners is find a way of trading that meets the needs of customers who want to save time and effort
3) Customer convenience could be:
1) Next day delivery
2) Personalisation of products
3) Self-service
Location of the business

Question 8

Customer needs - convenience

Answer 8

1) Time saving e.g. microwave
2) Portability e.g. easy to carry round like a mobile phone
3) Usability e.g. online ordering
4) Packaging e.g. single serving portions
5) Services e.g. dog walking

Question 9

How can a business Generate sales

Answer 9

It can do this through:
1) Lowering the price
2) Promoting the product through advertising
3) Running a competition or other promotional activity
4) Improving the product

5) There are other methods of generating sales which depends on the product or service*

Question 10

1) Business survival

2) How can a business survive?

Answer 10

If a business does not identify and satisfy customer needs it will not survive.

To survive a business needs to:

1) find out what the customers want and need from a product and service

2) provide that product or service at the right price, in the right place at the right time