Presentation on theme: "UNIT 1(1) Goods and Services, Needs and Wants"— Presentation transcript:
1 UNIT 1(1) Goods and Services, Needs and Wants Business ManagementUNIT 1(1)Goods and Services, Needs and Wants
2 What are goods and services? Businesses make goodsSome examples of goods madeComputersCarsWashing MachinesMobile phonesSweetsClothesSeafoodDVD playersI-podsBusinesses provide servicesSome examples of services providedBankingInsuranceEducationHairdressingPublic transportEntertainment – cinema
3 Goods and services can be described as Tangiblegoods – can be seen, touched and handled –eg washing machine, carIntangiblegoods – cannot be touched or handled –eg public transport, hair dressing
4 Goods and services can be described as Durablegoods and services – long lasting –eg clothes, educationNon-durablegoods 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 useCapital goodsGoods 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 inorder to survive – these are the basic needs orwantsFoodShelterClothingDrink
8 What I really, really want, What you really, really want.... WHAT IS A WANT?It is important to distinguish between whatwe need and what we wantI’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 tohave, or wishes for – they are not essentialfor survivalWhen a want is fulfilled it gives the consumerSatisfaction. Examples are:I-podSports CarVideo CameraExpensive 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
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