Question detail
RiverRun Catering serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?10,116, sales of 116 units, and a 37% change in costs or demand. Which option best applies Explain why businesses identify and satisfy customer needs?
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 customer needs to judge net profit margin, customers 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 customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use customer needs to judge net profit margin, customers impact, and the business objective in Customer needs.
Explanation
This option works because Use customer needs to judge net profit margin, customers impact, and the business objective in Customer needs. The case evidence gives ?11,616, 116 units, and 37%, 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 customers, or ignore the business objective.
Common mistake
Customer needs common mistake 1
Giving a vague answer instead of directly addressing: Explain why businesses identify and satisfy customer needs..
Answer by clearly explaining how to explain why businesses identify and satisfy customer needs..
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