What term means responding to a customer’s needs?

• A. Customer-driven
• B. Demand-led
• C. Market driven
• D. Forecast-driven

Answer: (C)

The main idea is aligning operations with what customers in the market actually want. When a system is market-driven, planning and execution are guided by real market demand and customer needs rather than just internal forecasts or individual requests.

Choosing market-driven makes sense because it signals that decisions about what to produce, stock, and deliver are shaped by the broader market’s preferences and buying behavior. This approach helps companies stay responsive, reduce mismatches between supply and demand, and adapt quickly to changes in customer tastes or trends.

The other ideas tend to emphasize different angles. Customer-driven focuses more on satisfying specific customers’ individual requests, which can be narrower than addressing overall market demand. Forecast-driven relies chiefly on internal forecasts rather than actual market signals, which can lead to misalignment if demand shifts. Demand-led centers on demand signals as the trigger but doesn’t inherently capture the broader market perspective that market-driven conveys.