Final answer:
True, customers have various needs including service, price, quality, action, and appreciation, which are all crucial for customer satisfaction. Companies aim to meet these needs to build a good reputation, secure repeat business, and procure customer referrals.
Step-by-step explanation:
The statement claiming that service, price, quality, action, and appreciation are referred to as the five needs of every customer is true. Every customer making a purchase does so with a belief that they will be satisfied with the good or service, determined by the information available to the customer. Imperfect or unclear information can lead to regret or avoidance of future purchases. This is why businesses strive to build a good reputation through delivering consistent quality and customer appreciation to facilitate repeat business and referrals.
Furthermore, consider the broader perspective of human needs. Humans have physical, psychological, and social needs that contribute to their happiness and satisfaction, ranging from the essentials like food and water to more complex needs such as social interaction and the security of possessions. As society becomes more advanced, needs grow more complex, and businesses must adapt by providing services and goods that meet these evolving demands.
Ultimately, the happiness of customers is contingent on the fulfillment of various needs, and successful businesses are those that understand and cater to these needs through their policies and practices.