A market-oriented firm defines its business in terms of:

• A. the location of its operations
• B. the needs and wants of its customers
• C. the products it manufactures
• D. the technology it uses

Answer: (B)

Verified step by step guidance

1. Understand the concept of how a market-oriented firm defines its business. Unlike a production-oriented firm, which focuses on the products it manufactures or the technology it uses, a market-oriented firm centers its strategy around the market demand.
2. Recall that a market-oriented firm identifies its business based on the needs and wants of its customers, meaning it prioritizes understanding and satisfying customer preferences over just producing goods or services.
3. Recognize that defining a business by the location of its operations is more related to logistical or operational considerations, not the core business definition from a market orientation perspective.
4. Summarize that the key characteristic of a market-oriented firm is its focus on customer needs and wants, which drives product development, marketing, and overall business strategy.
5. Therefore, the correct way a market-oriented firm defines its business is by the needs and wants of its customers.