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

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

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

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

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

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

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

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....

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

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