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Identification of customer/consumer characteristics, profiles, wants, and needs

Business Studies Notes and

Related Essays

Market Research

 A Level/AS Level/O Level

Your Burning Questions Answered!

Critically evaluate the different methods used in market research to identify customer characteristics and needs.

Discuss the importance of segmentation and profiling in developing effective marketing strategies. How do companies use these techniques to tailor their products and services to specific customer segments?

Analyze the role of customer feedback in understanding and meeting customer wants and needs. How can businesses leverage feedback to enhance their products and services?

Examine the ethical considerations associated with collecting and using customer data in market research. What are the responsibilities of businesses in ensuring privacy and protecting consumer information?

Compare and contrast the approaches taken by different industries in identifying and addressing customer characteristics, profiles, wants, and needs. Explain how these approaches vary based on industry-specific factors.

Market Research: Understanding Your Customers

Market research is like the detective work a business does to understand their customers. Think of it as gathering clues to figure out what people want, need, and why they buy (or don't buy) a product or service. This information helps businesses make smarter decisions about:

What to sell:

Knowing what people want helps businesses develop products or services that are actually in demand.

-Example: A clothing company might conduct market research and find out that teenagers are looking for eco-friendly clothing made from sustainable materials. This information helps the company create a product line that meets the needs and values of its target audience.

How to sell it:

Market research tells businesses the best way to reach their target audience.

-Example: A new restaurant might conduct market research to figure out where their target audience spends their time (social media, local magazines, etc.) and use those channels to advertise and promote.

How to price it:

By understanding the value customers place on a product or service, businesses can set prices that are competitive and attractive to buyers.

-Example: A bakery might conduct market research to find out what people are willing to pay for a specific type of cake. This helps them determine a price that covers their costs and generates a profit, while still being appealing to potential customers.

Identifying Customer Characteristics & Profiles

Market research helps businesses identify the key characteristics of their ideal customer. These "profiles" help businesses focus their marketing efforts on people who are most likely to be interested in their product or service. Here are some important customer characteristics:

Demographics:

These are the basic facts about a person, like age, gender, income, education level, location, and family size.

-Example: A sports equipment company might target their marketing towards young adults (18-35) with a high income living in urban areas, who are likely to be interested in active lifestyles.

Psychographics:

This goes beyond just demographics to understand people's attitudes, beliefs, values, interests, and lifestyles.

-Example: A coffee shop might target its marketing towards young professionals who value a sense of community and enjoy working in a relaxed and stylish environment.

Buying Behavior:

This involves understanding how people make purchasing decisions, what factors influence their choices, and how often they make purchases.

-Example: A tech company might research how people choose new smartphones. They might discover that users are swayed by features like battery life, camera quality, and brand reputation.

Understanding Wants and Needs

The ultimate goal of market research is to understand what people want (their desires) and need (their essentials). This helps businesses create products and services that solve problems, satisfy desires, and improve people's lives.

Wants:

These are desires that customers may not necessarily need but would like to have.

-Example: A person might want to own a luxury car, even though they need a reliable car to get to work.

Needs:

These are essential requirements that customers need to fulfill in order to live comfortably.

-Example: Everyone needs food, water, and shelter.

Putting it all Together

By combining information about customer characteristics, profiles, wants, and needs, businesses can create a clear picture of their target audience. This knowledge empowers businesses to create effective marketing campaigns, develop impactful products and services, and build lasting relationships with their customers.

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