Leaving Cert Business People in Business & Contracts: (A) Describe important aspects o

Question

(A) Describe important aspects of the relationship between producers and consumers in business.

Producers/suppliers are the makers, manufacturers and suppliers of goods and services. The producer is interested in making a profit but will only be able to do so if the consumers are satisfied with the product. The producer will make goods that satisfy consumer wants and needs, e.g., cars, domestic appliances, etc. The producer may also make goods which are used in a production process to make other goods. In both cases satisfying the consumer is vital. The interests of consumers and producers are sometimes in conflict because the consumer wants low prices and high quality while the producers want high prices and profit. Producers must know: What product to make; what quantity of it to make; what to charge for it (the selling price). The group of customers is being produced for the target market.

Consumers are the purchasers or users of goods and services supplied by firms. Consumers can be individuals or other organizations. They or often businesses who are in competition with other businesses but essentially exist to satisfy their wants by purchasing goods and services that are available. Consumers play an active role in the buying process and often use self-service. Individual consumers usually buy goods for home and durable goods (e.g., DVD players). The business enterprise buys raw materials or goods for stock which they sell to other consumers. The consumers are influenced by many factors such as personal interests and needs.

The consumer must evaluate a product before purchasing it. They have the power to influence the demand for a product and become used to it, then the manufacturers or changes made to it, they will either support or reject a business enterprise. As the consumer of goods and services holds significant power. They can make market research, for example, to get a regular reaction from the consumer group will then be used to make decisions about the product.

(A) Describe important aspects of the relationship between producers and consumers in business - Leaving Cert Business - Question 1 - 2005

Worked Solution & Example Answer:(A) Describe important aspects of the relationship between producers and consumers in business - Leaving Cert Business - Question 1 - 2005

Describe important aspects of the relationship between producers and consumers in business.

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