Question

Write short answers of the following

Why is it necessary for a business organization to create customers?

Answer 1

It is necessary for a business organisation to create customers because of the following reasons:
i. To increase profits- Profits can be earned in an organisation only because of customers, as there is a positive relationship between the number of customers and profits.

ii. To increase market share- Adding customers is also necessary as there is competition in the market. Thus, it is important for an organisation to maintain existing customers as well as add new ones to increase the market share.