1.2.1 customer needs

Question 1

Define 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

Customer needs - price

Answer 2

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

Question 3

Customer needs - quality

Answer 3

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

Question 4

Does quality matter?

Answer 4

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 5

Customer needs – product range

Answer 5

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