5.1 - identifying and understanding customers

Question 1

customer

Answer 1

Someone who buys a product from a business

Question 2

consumer

Answer 2

Someone who uses goods and services produced by businesses

Question 3

whats the exchange process for a business

Answer 3

ensure that the investment of time, money and labour is exchanged for sufficient to make a profit.

Question 4

whats the exchange process for a customer

Answer 4

need to believe the amount they pay for a product is value for money.

Question 5

identify business opportunities -3

Answer 5

• product that customers want to buy.
  -peoples’ needs.
  -people’s wants

Question 6

how does a business increase sales? -2

Answer 6

• provide a better or more unique product or service than competitors.
  -Different features

Question 7

marketing mix

Answer 7

a combination of factors that influence a customer’s decision to purchase a product.

Question 8

how to avoid costly mistakes?

Answer 8

Understanding customers

Question 9

what happens if you get a product wrong/low sales? -3

Answer 9

-withdraw the product
-amend the product which costs money.
-lower the price which can reduce profits

Question 10

characteristic of an entrepreneur -4

Answer 10

-competitiveness
-Understanding customers’ wants
-Getting the product and price right
-promoting with the correct messages