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Questions and Answers
What is the primary purpose of business activity?
What is the primary purpose of business activity?
What is the core activity of a business that involves promoting and selling goods and services?
What is the core activity of a business that involves promoting and selling goods and services?
What is a characteristic of consumer services that means they cannot be seen or touched?
What is a characteristic of consumer services that means they cannot be seen or touched?
Which of the following is an example of a consumer service?
Which of the following is an example of a consumer service?
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What is a marketing strategy for consumer services that involves highlighting the benefits of the service rather than its features?
What is a marketing strategy for consumer services that involves highlighting the benefits of the service rather than its features?
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What is the core activity of a business that involves managing financial resources?
What is the core activity of a business that involves managing financial resources?
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What is the characteristic of consumer services that means quality can vary depending on the provider?
What is the characteristic of consumer services that means quality can vary depending on the provider?
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What is the dynamic environment in which businesses operate?
What is the dynamic environment in which businesses operate?
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Study Notes
The Purpose and Nature of Business Activity
- The primary purpose of business activity is to create value for its stakeholders, including customers, shareholders, employees, and society as a whole.
- The nature of business activity involves the production and distribution of goods and services to meet the needs and wants of customers.
- Businesses operate in a dynamic environment, responding to changes in the market, technology, and society.
- The core activities of a business include:
- Production: creating goods and services
- Marketing: promoting and selling goods and services
- Finance: managing financial resources
- Human Resource Management: managing employees
Consumer Services
- Consumer services are intangible products that provide value to customers, such as:
- Hospitality: hotels, restaurants, and tourism
- Health and Wellness: healthcare, fitness, and beauty services
- Education: schools, universities, and online courses
- Financial Services: banking, insurance, and investment
- Characteristics of consumer services:
- Intangibility: cannot be seen or touched
- Inseparability: production and consumption occur simultaneously
- Variability: quality can vary depending on the provider
- Perishability: cannot be stored or inventoried
- Marketing strategies for consumer services:
- Emphasize benefits: highlight the benefits of the service rather than its features
- Build relationships: focus on building long-term relationships with customers
- Use tangible cues: use physical evidence, such as decor and ambiance, to create an impression
The Purpose and Nature of Business Activity
- The primary purpose of business activity is to create value for stakeholders, including customers, shareholders, employees, and society.
- Business activity involves producing and distributing goods and services to meet customer needs and wants.
- Businesses operate in a dynamic environment, responding to market, technological, and societal changes.
Core Business Activities
- Production: involves creating goods and services.
- Marketing: promotes and sells goods and services.
- Finance: manages financial resources.
- Human Resource Management: manages employees.
Consumer Services
- Consumer services are intangible products providing value to customers.
Types of Consumer Services
- Hospitality: includes hotels, restaurants, and tourism.
- Health and Wellness: includes healthcare, fitness, and beauty services.
- Education: includes schools, universities, and online courses.
- Financial Services: includes banking, insurance, and investment.
Characteristics of Consumer Services
- Intangibility: cannot be seen or touched.
- Inseparability: production and consumption occur simultaneously.
- Variability: quality can vary depending on the provider.
- Perishability: cannot be stored or inventoried.
Marketing Strategies for Consumer Services
- Emphasize benefits: highlight the benefits of the service rather than its features.
- Build relationships: focus on building long-term relationships with customers.
- Use tangible cues: use physical evidence, such as decor and ambiance, to create an impression.
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Description
Understand the primary purpose and nature of business activity, including creating value for stakeholders and responding to changes in the market and society.
