Producers & Consumers Flashcards
Who is a producer
Producers create, or produce, goods and provide services
a consumer
consumers buy those goods and services with money.
types of consumers
Loyal consumer
Impulse consumer
Discount consumer
Need-Based Customers
loyal customer
Loyal customers make up the bedrock of any business. As the name implies, loyal customers are those who have made a commitment to your product or service. Even though they may comprise the smallest percentage of your overall consumer base, your loyal customers are also the most likely to generate the majority of your income. As an added bonus, they’re far more likely to recommend your company to others.
Impulsive customer
Impulse shoppers are those simply browsing products and services with no specific purchasing goal in place. This consumer segment generates significant revenue for most retailers. This type of consumer is usually receptive to upselling and has the potential to become a loyal customer if products and services meet or exceed their expectations and desires.
Discount Customer
Bargain hunters are seeking the best deal, period, and most likely won’t be swayed by upselling techniques — in fact, this may cause them to move on. This type of customer has very little potential to become a loyal customer unless it’s part of your business strategy to offer the lowest possible price points at all times. This customer also rarely, if ever, makes purchases on impulse.
Need based consumer
As the name implies, need-based consumers are driven by the need for a specific product or service. Although these customers generally make purchases decisively and quickly once they find what they’re seeking, they’re easily lured away by competing businesses. However, they’re frequently converted into loyal customers.
Who is a distributor
A distributor is an entity that buys noncompeting products or product lines and sells them direct to end users or customers. Most distributors also provide a range of services such as technical support, warranty or service.
Distributors are essential in helping reach markets manufacturers could not otherwise target.
factors influencing customer demands
How money is spent
- customer wants or needs
- personal taste or preference
- Mass media
- customer socio economic
impact of globalization
Globalization refers to how nations around the world interact economically, politically, socially, and culturally. Explore the definition of globalization, and discover the different impacts on developing, transitional, and developed countries around the world.
Globalization creates greater opportunities for firms in less industrialized countries to tap into more and larger markets around the world. Thus, businesses located in developing countries have more access to capital flows, technology, human capital, cheaper imports, and larger export markets. Globalization allows businesses in less industrialized countries to become part of international production networks and supply chains that are the main conduits of trade.
Globalization gives access to the world market to transitional countries. They need to adapt their production capability, their prices, and their product quality to be competitive with the nations of the developed countries. Globalization changed and continues to change China. This country is becoming a major economic player in the global world.
Globalization allocates the production in the countries where it is the most efficient and less costly for the global world. Developed countries become more concentrated on services and research and development. The best example in the United States is Apple. Apple created and continues to develop iPhones in the US but outsources the mass production of iPhones in China where the costs are lower.
