identifying and understanding customers Flashcards
Why do businesses exist?
Businesses exist to provide goods and service to meet our wants and needs.
Define the four terms with examples.
A good is something you can hold like a pen whereas a service is something intangible, usually someone does something for you like hairdressing. A need is something you must have to survive where a want is something you’d like such as KFC.
All businesses are involved in an exchange process, what does this mean?
A business provides a good service in exchange for something in return i.e. money.
Is there a difference between a customer and a consumer?
A customer buys a product from a business whereas a consumer is someone who uses the good and service produced by businesses.
How can a business increase its sales?
By providing more benefits and doing something better than competitors.
What does the marketing mix mean to you?
It’s a combination of factors that influence a customer’s decision to purchase a product.
List the factors that make you go to your favorite clothes shop.
You like the clothes there
You think the clothes are value for money
You like the layout and feel of the store
It’s easy to get to
You like the staff
You think they’re pretty cool.
If you were to buy a new pair of footwear what factors would you consider?
Affordable
Stylish
Reliable
Environmentally friendly etc
What would the consequences be if a business didn’t understand its customers?
Withdraw the product because sales are too low
To amend the product in some way, which has a cost
To lower the price, which may reduce profits - how could this possibly increase profits?
Damage the brand name which may affect the company’s future success.
