Identify customer needs and wants.

Identification should begin by explaining the following basic principles:

• Goods and services have features.
• Those features have certain benefits for certain customers.
• Customers buy things that they believe will benefit them.
• Customers must be satisfied with their purchases.

Identification should involve assessing the

• types of goods and services needed and/or wanted
• features desired in those goods and services
• price customers are willing and able to pay for a good or service
• location(s) and time(s) goods and services are available for purchase.

Process/Skill Questions:

• Why is it important to distinguish between needs and wants? How can the fulfillment of a basic need lead to a want?
• How can a good or service be a need for one person and a want for another person?
• What factors affect an individual’s needs and wants?
• How does the identification of customers’ needs and wants affect the operation of a school-based enterprise (SBE)?