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Questions and Answers
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 a characteristic of consumer services that means they cannot be seen or touched?
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?
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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?
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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.
