In the next chapter we learn how sellers set the prices in which we pay for an item, why things cost what they do and not what they are worth. The key to prices are sellers that can sell their products as close to the cost of making the item. In a regular market, prices are the key. Businesses cannot afford to charge a higher price, customers are normally looking for a lower price and the lower the better, in today’s economy. Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market.
Governments may choose to increase minimum wage on an arbitrary basis, making it difficult for companies to hire individuals at a consistent market rate. Government price controls distort the economic theory of supply and demand. Supply and demand is a significant underlying feature of free-market economies. This theory allows individuals and businesses to make decisions based on self-interest. Businesses often pay individuals a wage based on current market standards.
BTEC FIRST UNIT 3 P1 All businesses need money to survive in order to buy materials and pay wages and other types of expenses or costs, like utility bills (gas, electricity and water), business rates and advertising. Money coming into a business is called income or revenue and usually comes from customers who pay for the goods and/or services that business provides. If a business' income is greater than its expenditure, it is said to be making profit since money is entering the business than income - then the business is making a loss. Firstly start-up costs are faced once, so they are not too much of a problem. Operating costs, however, are faced every fortnight for the whole time of the business.
P5- Explain how and why groups of customers are targeted for selected products in both of your organisations First of all in this task I am going to define; customers, consumers and buyers I will also explain the difference between each group. In the second section of this task I am going to explain the influences over purchasing decisions. Customer defined is a person that purchases a goods or service. Customers are often viewed as the most important people in any business; businesses are generally dependent on their customers as revenue cannot be made without customers purchasing their products/services. A Consumer is a person that consumes the product/service.
Given what you read, what questions and concerns do you have for the Marketing Director of Consumer Products? 2. Which of the proposed approaches would you support? Which ones would you not support? 3.
Customer-service provider relationships: an empirical test of a model of service quality, satisfaction and relationship-oriented outcomes. International Journal of Service Industry Management, 9(2),
Based on what level of middle class that the consumer is on, will greatly influence the amount of money he or she will spend on a product. 2. What criteria, in addition to income, do the authors say are important to understanding the consumer habits of middle-class China? Some other criteria that influence the consumer habits are age, the stage in the consumer’s career, and the location of purchase. Also, the consumer’s emotion and shopping experience is another influencing factor.
• Explain the importance of marketing in organizational success. • Describe the elements of the marketing mix. • Explain the importance of the marketing mix in the development of marketing strategy and tactics. • Create a marketing plan. • Identify quantifiable elements that can be used to evaluate, monitor, and control marketing effectiveness.
He took his business into the commercial field. What have we done to ourselves? As a class we talked about greed and how greed often motivates our financial decisions. We also discussed ethical responsibility in business. I think the best step forward would be to, on a national scale, adjust living standards downward.
2. [LO1] How is the Customer Value Framework useful? Answer: The CVF represents consumer behavior theory, which illustrates factors shaping consumption-related behaviors and ultimately determines the value associated with consumption. Thus, the CVF provides potential explanations for behavior. 3.