Understanding and Meeting Customer Needs - Worksheets, Questions and Revision

16 original exam-style questions - 4 pages of questions with a full mark scheme - free printable PDF.

Download PDF Jump to mark scheme (page 5)Understanding and Meeting Customer Needs revision guide

This topic is chapter 4 of GCSE Business: Business in the real world and enterprise Practice Book 2.

1.17 Understanding and Meeting Customer Needs

AQA 8132 · Calculators not allowed · about 50 minutes

Total Marks

Name: _______________________________ Date: ____ / ____ / ______

Answer ALL questions in the spaces provided. Short answers are acceptable for 1- and 2-mark questions. Show any working for calculation-style answers. Each question names the business used in that scenario.

Which one of the following best describes a 'need' as used in business when serving customers?

A) A basic requirement customers must have met to use a product or service
B) Any item a business wants to sell, whether useful or not
C) A temporary marketing trend that businesses exploit
D) The process of producing a good

(Total for Question 1 is 1 mark)

Which one of the following is a likely customer need for a small bakery supplying daily fresh bread in a UK town centre?

A) Low-cost bulk storage for goods sold months later
B) Freshness and availability of bread each morning
C) Access to heavy industrial machinery on site
D) International shipping to overseas customers

(Total for Question 2 is 1 mark)

Which one of the following best describes why services are often consumed at the same time they are produced, in the context of a hairdresser or salon?

A) Services are intangible and require the customer to be present for delivery
B) Services are cheaper to produce than goods
C) Services can be stored for later use
D) Services do not require skilled staff

(Total for Question 3 is 1 mark)

State one difference between goods and services that affects how a business can manage inventory, giving a short explanation in the context of a small online retailer.

(Total for Question 4 is 1 mark)

State two differences between a GOOD and a SERVICE, referring to their characteristics in a retail or local service context.

(Total for Question 5 is 2 marks)

A hairdresser offers haircuts and finishing, while selling shampoos at the salon. Identify which element is a good and which is a service in this salon context.

(Total for Question 6 is 2 marks)

Consider a small online retailer selling home accessories. State whether the delivery of a physical cushion is a good or a service, and give one reason for your choice in the online retail context.

(Total for Question 7 is 2 marks)

State two customer needs a busy town-centre bakery must meet to keep regular morning trade.

(Total for Question 8 is 2 marks)

A hairdresser notices a rise in requests for a new short hairstyle trend. State two actions the hairdresser could take to meet this customer need.

(Total for Question 9 is 2 marks)

State two likely immediate consequences for a bakery if it repeatedly sells stale bread to regular customers.

(Total for Question 10 is 2 marks)

Explain one reason why it is important for a local bakery (selling bread and cakes) to understand its customers' needs.

(Total for Question 11 is 3 marks)

Explain one reason why it is important for a hairdresser in a busy high street salon to understand customers' needs.

(Total for Question 12 is 3 marks)

Explain why it is important for the town-centre bakery to understand the timing of customer demand during the day.

(Total for Question 13 is 3 marks)

Explain why failing to meet customers' needs could reduce repeat custom for a hairdresser in a local neighbourhood salon.

(Total for Question 14 is 3 marks)

Explain why it is important for the small online retailer to understand the delivery and packaging needs of its customers.

(Total for Question 15 is 3 marks)

Analyse the likely consequences for a small online retailer of failing to meet customer needs for reliable delivery and accurate product descriptions. Use the online retailer context in your answer.

(Total for Question 16 is 6 marks)

Mark scheme · 1.17 Understanding and Meeting Customer Needs

Question 1

B1 A cao
Answer: A

Question 2

B1 B cao
Answer: B

Question 3

B1 A cao
Answer: A

Question 4

B1 one difference and explanation, eg goods can be stocked in a warehouse whereas services cannot, affecting inventory management
Answer: Goods can be stored in a warehouse and counted as inventory, whereas services cannot be stocked, so the online retailer must manage physical stock levels and reorder points for goods but cannot build inventory for services.

Question 5

B1 one valid difference, eg goods are tangible, services are intangible
B1 another valid difference, eg goods can often be stored while services are consumed at the time of delivery
Answer: Any two differences, e.g. goods are tangible while services are intangible; goods can be stored but services are produced and consumed at the same time.

Question 6

B1 service identified, eg the haircut is a service
B1 good identified, eg the shampoo sold is a good
Answer: Haircut = service. Shampoo sold = good.

Question 7

B1 identifies the cushion as a good
B1 gives a reason, eg it is tangible and can be stored and shipped
Answer: The cushion is a good, because it is a tangible product that can be stored in a warehouse and shipped to customers.

Question 8

B1 one valid need, e.g. consistent freshness of bread each morning
B1 another valid need, e.g. quick service or short queues during peak times
Answer: Any two, e.g. fresh bread available each morning; quick service at busy times.

Question 9

B1 one valid action, eg train staff in the new haircut technique
B1 another valid action, eg update price lists or promote the new style to customers
Answer: Any two, e.g. train staff in the new cut; promote the new style and adjust appointment lengths or prices as needed.

Question 10

B1 one immediate consequence, eg customers complain or ask for refunds
B1 another immediate consequence, eg customers stop buying from the bakery that day or next time
Answer: Any two, e.g. customer complaints and refund requests; customers stop buying from the bakery, reducing immediate sales.

Question 11

B1 identifies a reason, eg to make products customers want to buy
B1 develops the point, eg matching products to taste, dietary needs or peak buying times
B1 applies to the bakery, eg increasing daily sales and reducing unsold stock
Answer: To make products customers want to buy, for example adjusting recipes or offering morning items to match local tastes and peak times, which increases daily sales and reduces unsold waste for the bakery.

Question 12

B1 identifies a reason, eg to provide the right style and quality of service
B1 develops the point, eg tailoring service times, price and staff skills to customer preferences
B1 applies to the salon, eg improving customer satisfaction and encouraging repeat bookings
Answer: To provide the right style and quality of service, for example tailoring appointment length, price and staff skills to customers preferences, which improves satisfaction and encourages repeat bookings at the salon.

Question 13

B1 identifies a reason, eg to have items baked when customers want them
B1 develops the point, eg matching production to peak times reduces waste and increases sales
B1 applies to the bakery, eg baking extra before morning rush and fewer items midday saves cost and meets demand
Answer: So the bakery can bake products when customers are most likely to buy, for example producing more before the morning rush and fewer later, which reduces waste and increases sales.

Question 14

B1 identifies consequence, eg customers will not return if needs are not met
B1 develops the point, eg poor service or wrong style leads to dissatisfaction
B1 applies to the salon, eg fewer repeat bookings reduce monthly revenue and harm reputation locally
Answer: If customers receive poor service or the wrong style they are unlikely to return, which reduces repeat bookings and monthly revenue and damages the salon's local reputation.

Question 15

B1 identifies a reason, eg customers expect reliable and safe delivery
B1 develops the point, eg poor delivery or damaged goods reduce satisfaction
B1 applies to the retailer, eg better packaging and delivery options protect reputation and reduce returns
Answer: Customers expect reliable, safe delivery; if parcels arrive late or damaged satisfaction falls, so the retailer should offer appropriate packaging and delivery options to protect its reputation and reduce returns and costs.

Question 16

Level 1 (1-2): Simple points about consequences are made with limited application to the online retailer, such as stating customers may be unhappy or return items.
Level 2 (3-4): Developed points are given showing how unreliable delivery and inaccurate descriptions lead to returns, extra costs and lower satisfaction, with some specific reference to the retailer.
Level 3 (5-6): A clear chain of analysis links failing to meet needs to reduced sales, higher costs, poorer online ratings and long-term loss of customers, with balanced application to the retailer and consideration of knock-on effects.
Indicative content:
- Unreliable delivery leads to late or lost parcels, causing customer dissatisfaction and immediate loss of the sale or returns.
- Inaccurate product descriptions increase the rate of returns and refunds, raising handling and postage costs for the retailer and reducing profit margins.
- Negative customer reviews and poor ratings on the website or marketplace reduce future customer trust and lower conversion rates.
- Higher customer service workload dealing with complaints increases staffing costs and diverts resources from growth activities.
- Over time, lower repeat purchases and harmful online reputation cause market share loss to competitors who meet delivery and description expectations.
- Short-term remedies, such as offering refunds or free returns, protect reputation but add cost; long-term investment in logistics may be needed to restore trust.

Understanding and Meeting Customer Needs - Worksheets, Questions and Revision

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1.17 Understanding and Meeting Customer Needs

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