Profitable Business for Family and Community - Vocabulary Flashcards

Vocabulary flashcards covering key terms about products and services, consumer needs and wants, market opportunities, and ways to identify profitable ventures.

Trust (in service-based businesses)

The idea that you are the product; customers buy you as well as the service, so you must build confidence and loyalty.

Time (selling a service)

Selling a service means selling your time; services should be delivered quickly while maintaining quality.

Need

A basic necessity or essential requirement that drives purchase.

Want

A desire for a good or service that is not essential.

Target Market

The specific group of customers a product or service is aimed at; identified by demographics such as gender, age, occupation, and lifestyle.

Benefit

The advantage or positive outcome customers receive from buying a product or service.

Relationship

Establishing trust and satisfaction with customers, especially in service businesses, to secure repeat business.

Product

Anything manufactured or produced; tangible goods that can be preserved and tested before purchase.

Service

An activity or process using expertise to produce, develop, or deliver value; intangible and not typically preservable.

Tangible

Able to be touched; physical goods.

Intangible

Cannot be touched or handled; services and non-physical products.

Durable goods

Physical products that last over time (e.g., cars, computers, furniture).

Non-durable goods

Products that are consumed quickly (e.g., food and beverages).

Virtual product

A non-tangible product that can be downloaded or accessed online (e.g., electronic publications, warranties, videos).

Experiential

Knowledge gained through practice or using one’s senses.

Interaction

An exchange of responses or communication between seller and customer.

Demand

The amount of a good or service that consumers are willing to purchase at a given price.

Supply

The availability of goods or services from producers to meet demand; gaps between supply and demand indicate opportunities.

Market survey

A study of what people buy daily at affordable prices to identify needs and opportunities.

Interview

A method of gathering information through question-and-answer with respondents.

Environmental scanning

Systematically studying a community and existing businesses to identify opportunities and factors affecting success (e.g., wages, age).

Opportunity

A convenient time or occasion to start a business; a chance to meet a demand.

Profitability

A business is profitable when it remains in demand, satisfies needs and provides high quality at a reasonable price, is established, and yields a reasonable return on investment.

Entrepreneur

A risk-taker who starts and runs a business.

Risk

Inherent in business; no guaranteed 100% success.

Needs vs Wants (concept)

Needs are essentials for survival; wants are desires that are not essential.

Impulse purchase

A spontaneous purchase decision driven by presentation or momentary desire.

Business idea

A concept that can be used in a commercial, professional, or business environment.