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The role of business - EdexcelMeeting customer needs

Businesses exist to meet customer needs. They do this by organising resources to provide goods and services that customers want. Adding value to goods and services helps a business to sell more.

Part of BusinessEnterprise and entrepreneurship

Meeting customer needs

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Businesses exist to provide what their customers need or want. A business is more likely to survive and make a if it provides customers with what they want, whether that is specific product features, low prices, fast delivery, an easy-to-use website or a pleasant shopping experience. Knowing what customers need and want is an important part of running a business.

Needs

Needs are things required in order to survive. These life-essential things include:

  • clothing
  • food
  • shelter
  • warmth
  • water
What people need in order to survive, clothing, food, shelter, warmth and water.

Wants

Wants are things that people would like to have but can survive without. Wants are unlimited, and might include:

  • event tickets
  • designer accessories
  • holidays
  • laptops and mobile phones
  • cars
Examples of the things that people might want, designer accessories - handbags and watches, events such as music festivals, holidays, technology and luxury cars.
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Adding value
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Producing goods and services

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