The provision of goods and services for consumers and producers
A successful business meets the needs of its customers. Businesses try to achieve this by carrying out activities such as producing goodA product that can be touched. or providing serviceSomething a business provides that is intangible, ie not able to be touched. with the aim of making a profitsThe amount of money made after all costs are deducted.. As such, the purpose of business activity is to provide goods and services that customers want to buy, at a price that they are willing to pay.
Goods
Goods are łŮ˛ą˛Ô˛µľ±˛ú±ô±đĚýSomething that can be touched and physically held, for example, a book. items that can be used and stored. Businesses make goods and sell them to customers, who then own them. Examples include:
- computers
- food
- clothes
Goods can be split into two different categories, consumer goods and producer goods.
Consumer goods
Consumer goods are goods that are used by an end consumer, such as a TV or a sofa. These can be grouped in two different ways, durable and non-durable goods.
- Durable goods last a long time, eg 3 years or more, and can withstand regular use without wearing out. Examples of durable goods include telephones, TVs, cookers, machinery, motor vehicles.
- Non-durable goods do not last for a long time, eg less than 3 years. Examples of non-durable goods include: food, personal hygiene products, house-cleaning products.
Producer goods
Producer goods are goods that are used by businesses to either produce other goods, or help in the provision of providing services. An example of a producer good is machinery or tools.
Services
Services are intangibleWithout a physical presence and therefore unable to be touched. actions that cannot be stored. Businesses provide services to customers, who have access to them for a period of time. Examples include:
- hairdressing
- train journeys
- internet access
Services can be split into two different categories, personal and commercial.
- Personal services are services that are provided for individual people. These may include, for example, a car wash, house cleaning, car repair, window cleaning and computer repairs.
- Commercial services are services usually provided to businesses, such as logistics and transportation, stock management, waste management, warehousing, cleaning and recruitment. Some commercial services such as insurance are also provided to individuals.