Question detail
PeakPods serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?6,042, sales of 907 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 supplier lead time, owners 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 revenue and profit as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use customer needs to judge supplier lead time, owners impact, and the business objective in Customer needs.
Explanation
The option is correct because Use customer needs to judge supplier lead time, owners impact, and the business objective in Customer needs. The case evidence gives ?7,542, 907 units, and 37%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse revenue and profit, miss the owners, 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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