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Discuss how consumers may benefit from the existence of a competitive relationship between producers. - Leaving Cert Business - Question B - 2009
Question B
Discuss how consumers may benefit from the existence of a competitive relationship between producers.
Worked Solution & Example Answer:Discuss how consumers may benefit from the existence of a competitive relationship between producers. - Leaving Cert Business - Question B - 2009
Step 1
A competitive relationship between producers in the same line of business
Answer
A competitive relationship between producers means that each business aims to achieve its objectives while vying for market share. This dynamic fosters an environment where producers are continually striving to outdo one another, which can yield numerous benefits for consumers.
Step 2
Benefits of competition for consumers
Answer
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Improved Quality: As producers compete for customers, they are incentivized to enhance the quality of their products or services. Higher quality goods ultimately lead to greater customer satisfaction and better overall value.
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Improved Customer Service: Businesses often aim to provide exceptional service to attract and retain consumers. Heightened competition encourages producers to train staff and implement customer service protocols, ensuring better experiences for customers.
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Better Choice of Products: Competition spurs innovation, resulting in a broader variety of products. Consumers benefit from having more options to choose from, which allows for more tailored purchasing decisions based on individual preferences.
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Better Value for Money: In a competitive market, producers often lower prices to remain attractive to consumers. This price competition ensures that consumers receive better value for their money, which can lead to increased purchasing power and satisfaction.