1. UNIT 1(1) Goods and Services, Needs and Wants
Business Management
UNIT 1(1)
Goods and Services, Needs and Wants

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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....

9. 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

10. 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