Question detail
RiverRun Catering serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?10,910, sales of 995 units, and a 9% change in costs or demand. Which option best applies Explain how satisfying customer needs can increase sales, support the marketing mix, avoid costly mistakes and improve competitiveness?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Identifying and understanding customers
Question
- A. Use sales, marketing mix, customer needs to judge capacity utilisation, lenders impact, and the business objective in Customer needs.
- B. Give only a definition of Identifying and understanding customers without using the case evidence.
- C. Treat fixed and variable costs as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use sales, marketing mix, customer needs to judge capacity utilisation, lenders impact, and the business objective in Customer needs.
Explanation
This option works because Use sales, marketing mix, customer needs to judge capacity utilisation, lenders impact, and the business objective in Customer needs. The case evidence gives ?12,410, 995 units, and 9%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the lenders, or ignore the business objective.
Common mistake
Customer needs common mistake 1
Giving a vague answer instead of directly addressing: Explain how satisfying customer needs can increase sales, support the marketing mix, avoid costly mistakes and improve competitiveness..
Answer by clearly explaining how to explain how satisfying customer needs can increase sales, support the marketing mix, avoid costly mistakes and improve competitiveness..
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