Identifying & Understanding Customers Flashcards

All 6 cards in this deck

What is a 'need'? Give an example.

A basic human requirement — something that must be fulfilled for us to survive.
e.g. food, water, shelter, warmth or clothing.

What is a 'want'? Give an example.

Something a customer would like to have but does not need in order to survive.
e.g. a designer jacket rather than a basic jacket.

Give five reasons why it is important for a business to identify the needs of its customers.

To provide a product or service customers will buy; to increase sales; to select the correct marketing mix; to avoid costly mistakes; to be competitive.
Repeat sales, customer loyalty and a good reputation are also credited.

What are the four main customer needs a business must consider?

Price, quality, choice and convenience.

Give two consequences for a business of failing to identify or satisfy its customers' needs.

Sales and revenue fall as customers buy from competitors instead; costly mistakes are made, such as launching a product nobody buys, threatening survival.

True or false? Customers are often willing to pay more for convenience.

True. Making a purchase easier or quicker adds value, so a higher price can be charged.