1.2.1 Customer needs

Question 1

What customer needs are:

Answer 1

price

quality

choice

convenience

Question 2

*The importance of identifying and
understanding customers:

Answer 2

generating sales

business survival

Question 3

Definition: Customers’ needs

Answer 3

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

Question 4

Customer needs - price

Answer 4

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 5

Customer needs - quality

Answer 5

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

Question 6

Does quality matter?

Answer 6

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 7

Customer needs – product range

Answer 7

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 8

Customer needs – saving time and
money

Answer 8

Customer convenience means
saving the customer time and
effort in some way

Question 9

Generating sales

Answer 9

It can do this through:

Lowering the price

Promoting the product through advertising

Running a competition or other promotional activity

Improving the product