1.2.1 Customer Needs Flashcards
From Edexcel
Identifying and understanding customer
needs:
- What customer needs are:
price
quality
choice
convenience
*The importance of identifying and
understanding customers:
generating sales
business survival
Which of these products do you think you
need?
Aftershave
Chapstick
Washing machine cleaner
Tumble dryer sheets
Salad tongs
Ceiling fan
Basketball
Cat hair brush
Garden solar lights
Photo album
Stapler
Definition: Customers’ needs
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
Customer needs - price
Customers need a product or
service that is the right price
Customers will have
expectations about the price
that they will pay for the goods
Customer needs - quality
Customers need products that are of a satisfactory quality
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
Does quality matter?
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.
Customer needs – product range
Not every customer wants the same product or service, so businesses
may produce a range e.g. car models for different customer needs
Customer needs – saving time and
money
Customer convenience means
saving the customer time and
effort in some way
The task of business owners is
find a way of trading that meets
the needs of customers who
want to save time and effort
Customer convenience could be:
Next day delivery
Personalisation of products
Self-service
Location of the business
Customer needs - convenience
Time saving e.g. microwave
Portability e.g. easy to carry
round like a mobile phone
Usability e.g. online ordering
Packaging e.g. single serving
portions
Services e.g. dog walking
Generating sales
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*
Business survival
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
