1.2.1 customer needs

Question 1

What are customer needs

Answer 1

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

A good business will aim to satisfy
customers’ needs

Question 2

Does quality matter?

Answer 2

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 3

The importance of
identifying and
understanding
customers

Answer 3

A business needs to generate sales to survive

It can do this through:

Lowering the price

Promoting the product through advertising

Running a competition or other promotional activity

Improving the product

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