6.1 - Socioeconomic Impacts of Business on Consumers, Suppliers, and Investors

Stakeholders

- Parties who have an interest in the business organization and may stem from their ability to affect or be affected by the firm

Internal Stakeholders

- directly or financially part of the business operations

External Stakeholders

- outside parties who affect or are affected by the firm’s business decisions

Stockholders

- Owns a share of stock/ownership of a business

Consumer’s Behavior

- Understanding how consumers think and behave is important for firms to help them formulate strategies and understand target audiences

Providing Value to Customers

- Can be done by offering the lowest price or by providing the best quality product for a good price

- Different prices from market to mall

Connecting Emotionally

- Consumers also take their emotions into consideration when making choices

Offering Social Responsibility

- Consumers whose principles align with the social movements that firms promote are more likely to patronize their products

Excellent Customer Service

- Build a customer’s loyalty to a brand through excellent experience

Price

- main considering factor; is important for newer businesses that have limited financial resources

Reliability

- ability to fulfill orders accurately and on time

Stability

- ability to supply in the long-term

Capacity

- ability to meet the needs of a business

Location

- firms need to take into account lead time and shipping costs