Customer Needs (Edexcel GCSE Business)

Revision Note

Reviewed by: Jenna Quinn

A market is any place where buyers and sellers can meet, e.g. the Amazon website or a shopping mall
Businesses thrive when they are able to meet customer needs and wants
- Needs are considered essential, e.g. shelter or food
- Wants are desires which are non-essential, even if consumers consider them to be essential, e.g. Nike trainers
The aim of marketing is to help identify, anticipate and satisfy consumer needs and wants in a way that makes the business money (profit)
Market research is the process of systematically gathering data from consumers which can be used to influence business decisions

Understanding Customer Needs about Price, Quality, Choice and Convenience

Need	Explanation	Benefit to the Business
Price	This is the amount of money a customer is willing to pay for a product/service Customers often have a budget in mind and want to find the best value for their money	Understanding this helps the business price its products competitively and offer promotions that appeal to their target market
Quality	Quality refers to the standard of excellence that a customer expects from a product/service Customers want products that are reliable, durable, and meet their expectations	Understanding this helps businesses create products that meet the desired standards, which can lead to customer loyalty and positive word-of-mouth advertising
Choice	Customers often have a wide range of preferences and want to be able to choose from a variety of products or services	Understanding this helps businesses to offer a range of options that cater to different customer preferences This can increase customer satisfaction and loyalty, as customers are more likely to find a product that meets their specific needs
Convenience	Customers value convenience because they want products that are easy to access and use This includes factors such as location, online ordering, and fast delivery	Understanding this helps businesses create a customer experience that is both efficient and enjoyable By providing a convenient shopping experience, businesses can build customer loyalty and increase repeat sales

Identifying and understanding customers is essential for the success of any business, especially when it comes to generating sales and ensuring business survival

Understanding customers leads to greater sales

Ensuring business survival is crucial to both new and established businesses
Understanding customers helps businesses to survive and thrive by addressing the following points, which aid survival

Understanding customer needs helps ensure business survival

Last updated: 21 October 2024

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