Markets Flashcards
Physical market advantages (buyer)
Easier customer service
Experience of shopping
Easier for emergency
Physical market disadvantages (buyer)
Requires travel
Closing times
Items might be out of stock
Non physical market advantages (buyer)
More selection
Convenience
Can find retired products
Non physical market disadvantages (buyer)
Easier to carelessly spend
Longer arrival time
Don’t see the product physically before buying
Postage charge
Physical market advantages (seller)
Easier customer service +returns
Easier to sell to unlikely customers
Physical market disadvantages (seller)
Rent and warehouses
Billing
Paying staff
Robbery
Non physical market advantages (seller)
No billing
Social media marketing is effective
Returns
Non physical market disadvantages (seller)
Postage / shipping fees
Less staff
Website upkeep
Responsible for making sure the customers get the product
Competitive market
A market in which there are large numbers of firms producing a similar product or service.
Barrier to entry
Difficult to enter market and compete
Market share
The percentage of total sales in an industry generated by a particular company
Monopoly
A market dominated by one seller (25-100% of market share).
Oligopoly
An oligopoly exists where a market is dominated by a few firms e.g mobile phone market
Economies of scale
Monopolies can achieve economies of scale, meaning that they can produce goods or services at a lower cost per unit due to their large scale of production.
Collusion
Takes place when rival companies cooperate for their mutual benefit. When two or more parties act together to influence production and/or price levels.
