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Customer Requirements

The document discusses customer requirements, which are the specific characteristics customers need from a product or service. There are two types of customer requirements: service requirements, which are intangible aspects like on-time delivery and easy payment processes, and output requirements, which are tangible product specifications like loudness and clarity. Effective market research is critical for entrepreneurs to determine potential customers and gather relevant data on customer needs through surveys, interviews, and focus group discussions.

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2K views

Customer Requirements

The document discusses customer requirements, which are the specific characteristics customers need from a product or service. There are two types of customer requirements: service requirements, which are intangible aspects like on-time delivery and easy payment processes, and output requirements, which are tangible product specifications like loudness and clarity. Effective market research is critical for entrepreneurs to determine potential customers and gather relevant data on customer needs through surveys, interviews, and focus group discussions.

Uploaded by

sherryl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Customer Requirements

Customer requirements are the specific characteristics that the customers need from a product or a service.
There can be two types of customer requirements:
1. Service Requirement
2. Output Requirement

Service Requirement:
An intangible thing or product that cannot be touched but the customer can feel the fulfillment. There are elements in
service requirement like on-time delivery, service with a smile, easy-payment etc. It includes all aspects of how a
customer expects to be treated while purchasing a product and how easy the buying process goes.

Output Requirements:
Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the
product. Costumers will avail services as a product, then various service requirements can take the form of output
requirements. For example, if the consumer hires a multi cab, then on-time arrival becomes an output requirement.
Customer buys gadgets (phone speaker) the specification like the loudness and clarity are the output requirements.

Market Size - The entrepreneur’s most critical task is to calculate the market size, and the potential value that market
has for their start-up business. Market research will determine the entrepreneurs’ possible customers in one locality.

Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and
interpreting the information about the products or the services to be offered for sale to the potential consumers in the
market

DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data collection may cause
mistakes and ultimately lead to invalid results.

TIPS in COLLECTING DATA


 Organize collected data as soon as it is available
 Know what message you want to get across and then collect data that is relevant to the message
 Collect more data
 Create more data
 Take note of interesting or significant data

Most Common Method of Collecting Data from the Target Customer

1. SURVEYS are the most common way to gather primary research with the use of questionnaires or interview
schedule. These can be done via direct mail, over the phone, internet (e.g. Google) or email, face-to-face or on the
Web (e.g. Skype or Viber).

2. INTERVIEW is one of the most reliable and credible ways of getting relevant information from target customers. It
is typically done in person between the researcher/entrepreneur and a respondent where the researcher asks
pertinent questions that will give significant pieces of information about the problem that he will solve. The interview is
also helpful even when the business has already started because the customers’ feedback provides the entrepreneur
a glimpse of what the customers think about the business.
3. FOCUS GROUP DISCUSSION (FGD) - is an excellent method for generating and screening ideas and concepts.
It can be moderated group interviews and brainstorming sessions that provide information on user’s needs and
behaviors.

The following are considerations in the use of focus group discussions in market research:
• The length of the session is between 90 and 120 minutes.
• Conduct focus groups discussion with 8 to 10 participants per group.
• Assign an expert moderator / facilitator who can manage group dynamics.
• Use a semi-structured or open-format discussion Strive for consistency in the group’s composition (for
example, it may not be advisable to have business customers and retail customers in the same focus group,
their needs are very different)

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