Question

A company has started selling a new type of product. Which strategy should the company implement to understand customer preferences better?

a) Focus groups
b) Competitive analysis
c) Cost-benefit analysis
d) SWOT analysis

Answer 1

To understand customer preferences better, a company should implement focus groups. Focus groups involve gathering a small group of target customers to discuss their opinions, preferences, and experiences with the product.

Step-by-step explanation:

To understand customer preferences better, a company should implement focus groups. Focus groups involve gathering a small group of target customers to discuss their opinions, preferences, and experiences with the product. Participants can provide valuable insights and feedback, allowing the company to make informed decisions based on their feedback.

For example, a company selling a new type of smartphone could organize focus groups with potential customers to understand their preferred features, design preferences, and overall satisfaction with existing smartphones in the market. Through interactive discussions, the company can gain a better understanding of customer preferences and tailor their product accordingly.