GCSEBusinessEdexcelRevision Notes1. Investigating Small Business1.2 Spotting a Business Opportunity1.2.1 Customer Needs

Customer Needs (Edexcel GCSE Business)

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Steve Vorster

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Economics & Business Subject Lead

Identifying & Understanding Customer Needs

  • 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 to be 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 the 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/services that are easy to access and use
  • This includes factors such as location, online ordering, and fast delivery

  • Understanding this helps businesses to 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

The Benefits of Understanding Customers

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

  1-2-1---the-benefits-of-understanding-customers---sales

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
     
    1-2-1---the-benefits-of-understanding-customers---survival

Understanding customer needs leads to business survival

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    Steve Vorster

    Author: Steve Vorster

    Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.