1.1.3 The role of business entreprise

Question 1

Products

Answer 1

are physical, tangible items such as a car, a pair of scissors or a television set

Question 2

Services

Answer 2

are non-physical and intangible, like a taxi journey, a haircut or a
television programme

Question 3

Need

Answer 3

A need is something essential to
survive

Question 4

Want

Answer 4

A want is a luxury item that we desire, but is not essential to survival

Question 5

Meeting Customer needs

Answer 5

is satisfying or exceeding customer expectations in order to encourage a purchase over a competing business

Question 6

Benefits of meeting customer needs

Answer 6

Increased reputation
Products are more likely to sell

Question 7

Disadvantages of meeting customer needs

Answer 7

Expensive
Customer needs are constantly changing

Question 8

Added Value

Answer 8

is the difference between the cost of the inputs involved with producing a product, and the price it is sold for

Question 9

Adding Value

Answer 9

is fundamentally making a product or service more valuable to the consumer than it is in its raw form

Question 10

Methods of adding value

Answer 10

Branding
Design
Quality
Convenience
Unique selling point

Question 11

Branding

Answer 11

the name or image that identifies one busineses product or service as unique

Question 12

Design

Answer 12

Good product and packaging design adds value to a product