Customer Needs Flashcards

All 9 cards in this deck

What are the four customer needs in the Edexcel specification?

Price, quality, choice and convenience.

What does the customer need 'convenience' mean?

Customers want a product or service that is easy to access and use — e.g. opening hours, location or online ordering that suits them.

What does the customer need 'choice' mean?

Customers want a range of products or options to pick from so they can find what suits them.

True or false? Profit is a customer need.

False. Profit is a business aim; the customer needs are price, quality, choice and convenience.

True or false? Meeting the customer need for quality always means being the cheapest.

False. Quality is about the product meeting the standard customers expect; price is a separate customer need.

Why is identifying and understanding customers important to a small business?

It helps generate sales and supports business survival.

Give one benefit to a small business of understanding its customers' needs.

Any one of: it can set a suitable price so customers are more likely to buy (more revenue); it can develop product quality to gain a competitive advantage and a larger market share; it can offer more choice to attract customers.

How can failing to understand customer needs threaten a small business's survival?

Customers buy from competitors instead, so sales and revenue fall and the business may not cover its costs.

What does 'value for money' mean for a customer?

The customer feels the quality and benefits of the product justify the price paid.