U NIT 1 Chapter 1 Lesson 1

N EEDS VS. W ANTS Needs would be defined as goods or services that are required in order to live. Ex. food, water, air, clothing, shelter, health care.

N EEDS VS. W ANTS Wants are goods or services that are not necessary but that we desire or wish for. For example, one needs clothes, but one may not need name brand clothes. One does not need toys, entertainment, gems, etc…again these are wants!

D IFFERING NEEDS AND WANTS … Age Culture Gender Community Era/Time Income Values Personality Etc., Etc.. Just like each one of us is different from each other…so too are our needs and wants!!

Q.W HY IS THIS IMPORTANT ? A. Your needs and wants… provide businesses with opportunities to make a profit… by providing goods and services… that fulfill your NEEDS & WANTS

W HAT ABOUT YOU ? You are the CONSUMER A consumer is a person (business or organization) who buys and uses goods and services… which essentially fulfill our needs and wants!

TRENDS & FADS A trend is the direction in which society in heading… The way things are going to be… For a LONGGGGG time! Ex. Computerized, faster, smaller, high gas prices. Trends will influences what people need and want…what they will buy.

TRENDS ILLUSTRATED … How could higher gas prices affect consumer purchasing and habits? Buy smaller cars Car pool Walk or bike Alternative energy cars

NAME SOME OTHER TRENDS !! Higher education Environmental awareness Leisure time Personal Appearance and wellness 2 income families More….

TRENDS & FADS A FAD is short term phenomenon in which something quickly catches on and dies out almost as quickly. Most fads deal with personal expression, toys, music, fashion Ex… name some!!! FADS too will influences what people need and want…what they will buy.

FADS ILLUSTRATED Name the latest Video Game System Now name the systems that are no longer popular…that are now out-dated or no longer IN. Q. How does FADS affect business and consumers?

M ASLOW S T HEORY humans are motivated to satisfy their needs according to a hierarchy (a ranking order). He used his hierarchy to illustrate how people are motivated to satisfy their most basic physical and safety needs first. Once those needs are filled, Maslow said, people will be motivated by their higher needs for love, esteem, and, finally, self-actualization.

M ASLOW AND B USINESS What does Maslows Theory have to do with business or consumers? Ex. Advertising and how businesses try to APPEAL to certain types of needs. Ex. Consumer purchases of lower level, higher priority needs FIRST.

W HAT IS B USINESS ? Any place that sells goods or services… that satisfy needs and wants… in order to earn a profit.

B USINESS IS EVERYWHERE!!! Business Business is a major and influential part of Canadian society. Everyone is involved in the business world to some extent.

I NTERDEPENDENCE Producers Consumers Goods & Services Needs & Wants

S OME DEFINITIONS Producers: businesses that create finished goods or provide services. Goods: are any physical item that you purchase, possess and use. Examples please… Services: are any helpful action performed in exchange for pay. Examples please…

T HE I NTERDEPENDENCE Explain the interdependent relationship between consumers and producers. Consumers have needs and wants. They NEED producers (businesses) to fulfill these needs and wants. Hence business create goods and provide services. At the same time, producers NEED consumers to buy their goods and services.

T HE I NTERDEPENDENCE Can you name other types of interdependence in the world of business? Ex. Business – Business, Business - Workers

P RODUCERS … A CLOSER LOOK. 2 groups of producers: Manufacturer Supplier Manufacturer is the actual company that makes the finished good. Ex. NIKE makes or manufactures NIKE footwear and clothing. Supplier is the business that makes the finished goods available to the consumer. Ex. Walmart, Canadian Tire and Athletes World. NIKE does not sell directly to the end consumer. They sell to other businesses.

G OODS & C ONSUMERS … A CLOSER LOOK. 2 types Consumer goods & the End Consumer Business-to-business goods & Business–to-business consumers

C ONSUMER GOODS & THE E ND C ONSUMER Consumer Goods are items purchased by consumers and used for personal use… The person who purchases a product for their own use is called the end consumer or ultimate consumer. Ex. A toaster to use at home.

B USINESS - TO - BUSINESS GOODS & B USINESS – TO - BUSINESS CONSUMERS Business–to–business goods are items purchased by businesses to use in the business or in other products. Also called producer goods. Businesses that buy goods to use in their own products or in operating their business is referred to as a business-to-business consumers or industrial consumers. Ex. A restaurant purchases a toaster to make toast for breakfast for its customers.

T HE M ARKET Market is any place where buyers (consumers) and sellers (producers) meet to make an exchange and do business. Consumer Markets Business-to-business Markets Examples of each???

D EMAND Demand represents the consumer side of the market. Consumer demand for a product is directly related to price. Generally speaking, consumers are willing to buy more of a good or service when the price is low.