Unit 1.2

The four main customer needs are based on?

• Price, Quality, Choice, Information

• Product, Quality, Choice, Convenience

• Price, Quality, Choice, Convenience

• Price, Design, Choice, Convenience

Businesses can only use one pricing strategy

• True

• False

Loss Leaders are products which are sold at a higher price than they cost to produce and sell, with the aim of increasing footfall into a business' stores

• True

• False

The two key benefits for a business if it can identify and understand its customers' needs are?

• Generating sales

• Attracting customers

• Business survival

• Expansion

If a supermarket opened a range of smaller local stores, which customer need would this be most closely linked to?

• Price

• Quality

• Choice

• Convenience

An electronics retailer sells a variety of top branded goods but has just launched its own range of essential products which will be much cheaper. Which customer need would this be most closely linked to?

• Price

• Quality

• Choice

• Convenience

If customers have a wide range of options when they are looking to purchase a product, which customer need does this meet?

• Price

• Quality

• Choice

• Convenience

If a business sells products which are known as being the best in the market, which customer need does this link to?

• Price

• Quality

• Choice

• Convenience

Tom is looking to purchase a new TV, but he has a limited budget and can't travel far. Which two customer needs are most important to Tom? (2 answers)

• Price

• Quality

• Choice

• Convenience

Jenny is looking to purchase a wedding dress. She has saved for the last five years just so she can afford whichever dress she falls in love with. She is willing to travel anywhere in the UK to find the perfect dress regardless of the price. Which two customer needs are most important to Jenny? (2 answers)

• Price

• Quality

• Choice

• Convenience