i&s business test

Needs

Something a customer requires to maintain a good standard of living.

Wants

Something that a customer does not require, but desires to own.

Four factors of production

Land, labour, capital, entrepreneurship.

Entrepreneur

A person who founds or sets up a business.

Product

An item offered for sale.

Fast-moving consumer goods

Non-durable goods that are typically sold quickly and at a relatively low cost.

Consumer perishables

Products that have a specified lifetime and deteriorate in quality as time goes on.

Consumer durables

Products that have a long and useful life after purchase.

Specialty products

Products by a specific brand that have unique characteristics that make customers more likely to buy them.

Price

The cost of a product or service.

Cost-plus pricing

A pricing strategy that involves the selling price of a product being determined by a fixed percentage markup.

Psychological pricing

Slightly decreasing the price of a product to make it seem monumentally cheaper than it actually is.

Discrimination pricing

Selling identical products to different customers at various prices.

Loss leader

When a store places its goods at a price below what they cost to manufacture to stimulate the sales of other, profitable products.

Promotion

The marketing and advertising of products.

Place

The location where a product or service is produced or sold.

Product life cycle

Stages including R&D, launch, growth, maturity, and decline.

R&D

Pre-production phase of a product, focusing on market trends and customer needs/wants.

Launch

The stage where the product is released into the market.

Growth

The stage where the product begins to gain traction and sales increase.

Maturity

The stage where the product has been on the market for some time with consistent high sales.

Decline

The stage where the product begins to decrease in popularity and sales slow.

Revenue

price x quantity

Profit

revenue - cost

Market share

revenue for firm/revenue for market x 100