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Section 1.1 Introduction to Business
Copyright Goodheart-Willcox Co., Inc.
In general, the benefits created by business
include:
• providing products
• creating markets
• generating economic benefits
Business Provides Products
Some of the products you use every day
meet a need, and others satisfy wants. A need
is something a person must have in order to
survive, such as food, clothing, and shelter. A
want is something that a person desires but can
survive without. Needs and wants are unlimited.
Businesses focus on satisfying customer needs
and wants. A business could not continue
without satisfied customers.
A major task of business is to provide utility.
In business, utility describes the characteristics
of a product that satisfy wants and needs. Utility
means usefulness. There are five types of utility,
as shown in Figure 1-1.
• Form utility is added when a business
changes the form of a good or service to
make it more useful.
• Place utility is added when products are
available at convenient places.
• Time utility is added when products are made
available at the times that customers need
and want them.
• Information utility is added when facts and
details about a product are made available to
a customer.
• Possession utility is added when it becomes
easier for customers to acquire a product.
Business sometimes refers to the process
of adding utility as adding value. Adding value
means enhancing a feature or service to motivate
customers to make a purchase.
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A product is anything that can be bought or sold,
which includes both goods and services.
Goodheart-Willcox Publisher
Figure 1-1 One of the major tasks of business is to
provide utility in order to satisfy the wants and needs
of customers.
Examples of Utility
Form Smartphones are designed to be
ergonomic, compatible with popular
apps, and have high enough
capacity to be useful.
Place Shopping malls make a wide variety
of stores available in one convenient
location.
Time Banks offer early morning teller services
to meet the needs of businesses that
are open in the morning, as well.
Information Many electronics manufacturers
have digital versions of installation
and troubleshooting guides that are
accessible anytime on their websites.
Possession Convenience stores and drive-thru
pharmacies offer quick product
access.
Ethics Ethics
Business Ethics
Ethics is a set of rules that define what is wrong and
right. Ethics helps people make good decisions in
both their personal and professional lives. Business
ethics is a set of rules that help define appropriate
behavior in a business setting.