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UNIT 1(1) Goods and Services, Needs and Wants
Business Management UNIT 1(1) Goods and Services, Needs and Wants
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What are goods and services?
Businesses make goods Some examples of goods made Computers Cars Washing Machines Mobile phones Sweets Clothes Seafood DVD players I-pods Businesses provide services Some examples of services provided Banking Insurance Education Hairdressing Public transport Entertainment – cinema
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Goods and services can be described as
Tangible goods – can be seen, touched and handled – eg washing machine, car Intangible goods – cannot be touched or handled – eg public transport, hair dressing
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Goods and services can be described as
Durable goods and services – long lasting – eg clothes, education Non-durable goods and services – used up quickly – eg sweets, cinema
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WHAT ARE CAPITAL AND CONSUMER GOODS?
Goods sold to people (ie consumers – us) for their own use Capital goods Goods used by a business to make consumer goods and other capital goods
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Difference between Needs and Wants
As consumers, we buy the goods offered by a range of organisations/ businesses. The following are examples of goods we buy
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WHAT IS A NEED? Food Shelter Clothing Drink
A NEED is something an individual must have in order to survive – these are the basic needs or wants Food Shelter Clothing Drink
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What I really, really want, What you really, really want....
WHAT IS A WANT? It is important to distinguish between what we need and what we want I’ll tell you what I want, What I really, really want, So tell me what you want, What you really, really want....
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WHAT IS A WANT? I-pod Sports Car Video Camera Expensive jewellery
A WANT is something an individual would like to have, or wishes for – they are not essential for survival When a want is fulfilled it gives the consumer Satisfaction. Examples are: I-pod Sports Car Video Camera Expensive jewellery
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HOW DOES A BUSINESS KNOW WHAT WE NEED OR WANT?
A business will use Market research to identify what consumers need and want. This information helps the business in decision making eg whether a new product/service should be developed
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