1.2.1 Customer Needs & 1.2.2 Market Research

Question 1

Definition: Customers’ 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

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

Question 6

Customer needs – saving time and
money

Answer 6

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

Question 7

Customer needs - convenience

Answer 7

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

Question 8

Generating sales

Answer 8

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