Customers' needs and wants

Market research is how an entrepreneur finds out what customers actually think. It gives customers a chance to share their views, and it helps the entrepreneur understand their needs and wants instead of guessing.

Gaining customers' views and feedback

Collecting views means hearing from the people who decide whether to buy. Feedback can be positive, which confirms the entrepreneur is on the right track, or negative, which shows what to change. Ravi plans a market stall selling customised phone cases and asks local teenagers what they think of his designs. Several say the cases look good but the price is too high, so he finds a cheaper supplier before ordering any stock.

Needs and wants

A customer's need is something they cannot do without because it is essential. A want is something they would like but could manage without, such as a favourite colour or a stylish design. Both matter: a case that does not fit the phone will not sell however good it looks, and a plain case may attract fewer buyers than one in colours teenagers like. Customers rarely say these things out loud, so an entrepreneur has to ask them.

Identifying the target customer

The target customer is the particular group of people a business aims its good or service at. Research helps the entrepreneur work out who they are — their age, interests, budget and where they spend their time — and what matters to them. Ravi assumes he is aiming at parents buying for their children, but the feedback shows most interest comes from 13 to 16 year olds who want cheap cases that match the colour of their phone. He can then choose his designs, prices and where to advertise around those customers.