1.2.1 customer needs

Question 1

what are customers needs?

Answer 1

price, quality, choice and convenience

Question 2

*The importance of identifying and
understanding customers:

Answer 2

generating sales

business survival

Question 3

definition of 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

Question 5

Customer needs - quality

Answer 5

Customers need products that are of a satisfactory quality

Question 6

Customer needs - convenience

Answer 6

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 7

Business survival

Answer 7

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

Question 8

Definition: Market research

Answer 8

Market research is where businesses try to find out what
customers want/need, and also look at what competitors
are doing/offering.

Question 9

Market research: To identify and
understand customers

Answer 9

A business should use
market research to help
them identify what a
customer need is and how
to meet and exceed that
need

Question 10

Market research: To identify gaps in
the market

Answer 10

A business will carry out
marketing research to
spot a gap in the market
or a potential business
opportunity

Question 11

Market research: To reduce risk and
make informed business decisions

Answer 11

Market research helps to reduce
the amount a financial risk has

It gives the business owner solid
information on which to base a
decision e.g. where is the most
convenient location for
customers?

Question 12

Definition: Primary research

Answer 12

Primary research is the gathering of new
information that is specific to the business

Question 13

What is a primary research?

Answer 13

Primary research is original data
gathered by the researcher

The information does not yet
exist, so it could not be found
on the Internet, a website, in a
magazine or anywhere else

Question 14

4 main primary research
methods

Answer 14

1) Survey

2) Questionnaire

3) Focus group

4) Observation

Question 15

1 survey

Answer 15

Primary research may also
include a survey of
customers who use the
business

Question 16

2 questionaire

Answer 16

A business will have to
consider:

Who should they ask?
(Random or quota
sampling)

How many people should
she ask? (sample size)

Where should they stand
to ask questions?

How many questions
should they ask?

What questions should
they ask?

Question 17

3 Focus group

Answer 17

A focus group brings a group
of potential customers
together to talk about the
proposed new product or
service idea.

Question 18

4 Observation

Answer 18

A business may choose
to gather data from
observation of buyer
behaviour

Do customers shop
alone or in groups?

Do customers notice
carefully placed
promotions?

What route do
customers take round a
store?

Question 19

Definition: Secondary research

Answer 19

In secondary research the information already
exists in some format, someone has already
collected the data

Question 20

3 main secondary research
methods

Answer 20

1) Internet

2) Market reports

3) Government reports

Question 21

1 Internet

Answer 21

There are billions of
websites on the Internet

It’s a great place for a
market research to find
information about the
competition

Question 22

2 Market reports

Answer 22

Mintel trends and reports –
Mintel has a global team of
trend analysts constantly
assessing change in culture,
economy and society and
writing industry reports about
it

Question 23

3 Government reports

Answer 23

Office of national statistics
(ONS)contains very useful
demographic information
and data on a range of
markets and industries e.g.
construction,
manufacturing, production
and tourism

Question 24

Quantitative (Quantity data)

Answer 24

Involves gathering data
and measuring
responses

Data displayed in
charts, graphs, or as
statistics and
percentages