Share Customer satisfaction reflects the expectations and experiences that the customer has with a product or service. Consumer expectations reflect both past and current product evaluation and user experiences.
The Market Mechanism All societies necessarily make economic choices. Society needs to make choices about, what should be produced, how should those goods and services be produced, and whom is allowed to consumes those goods and services.
For conventional economics the market by way of the operation of supply and demand answer these questions. Under conditions of competition, where no one has the power to influence or set price, the market everyone, producers and consumers together determines the price of a product, and the price determines what is produced, and who can afford to consume it.
Price provides the incentive to both the consumer and producer. High prices encouraged more production by the producers, but less consumption by the consumers. Low prices discourage production by the producer, and encouraged consumption by the consumers.
Both incentives push the price to balance the forces of consumption demand and production supply. Economists call this balance: The supply and demand mechanism the economic model besides being the natural consequences of economic forces provides the most efficient economic outcomes possible.
Satisfaction for society is maximized, at minimum cost. This core model of supply and demand explains why economists usually favor market results, and seldom wishes to interfere with price. Setting minimum wages, for instance, or interfering with trade, violate the spirit of the model, and lead to inefficient outcomes.
Alternative Viewpoints There are alternative viewpoints, however, that question just how efficient and natural the market mechanism is.
They argue that actual markets in any society is embedded within a set of institutional rules, laws, and customs that determine how well the market works. Only by looking at actual markets and their institutional rules can efficiency be determined.
They see a market as a game where the underlying rules as well as the approaches of its participants determine the outcome. The variables that matter are institutions and not only prices. Some markets work better, than others, even within the same society, but certainly they differ between countries with different rules and values.
This disagreement among economist is a matter of degree. Even Adam Smith, the father of economic saw a role for government in the economy. Lassize faire government stay out was never seen as absolute. The Government was needed to provide some elements of the following; law and order, enforcement of private contracts and property rights, public goods such as roads and other public infrastructure, and defense from external military threats.
Most economists believe these roles continue. Most economists also believe that the market is a useful tool and has a place in the economy. The real difference is the degree of faith in the efficiency of the market, and whether society should take direction from the market, or society should control and direct the market.
How are prices set? The supply and demand model If no single seller or buyer can set prices and neither does government or any other institution; how are goods and services allocated in competitive markets, and how are resources allocated in the competitive factor markets?
The answer is that there are two independent factors that determine price in competitive markets demand and supply.
If markets were not competitive by definition a single seller or buyer could control and set price. Competition then needs flexible impersonal pricing. Suppliers must not work together to influence prices, and each supplier must be able to enter or exit a market at will.Introduction This task I am going explain the process of distributing goods through different channels from the manufacturer to the customers.
The term distribution means the process of delivering, storing and selling goods, so . Channel management deals with the process involved in getting Effective channel management can help firms deliver great cust Channels of distribution are primarily concerned with the supp.
Introduction – In this assignment I will be explaining the process of distributing goods through different channels from the manufacturer to the customer.
Step 2 Harvesting. P2 Explain the process of distributing goods through different channels from the manufacturer to the consumer Good morning Year 13 For P2 I would start by looking at company literature, websites and organisational logistics information to identify and understand the different distribution methods used by the different types of retailers.
The Buyer/User, through its own analysis and testing, is sole ly responsible for making the final selection of the products and for assuming that all performance, safety and warning requirements for the application are met.
Distributing a product through many different channels Negotiation The process of one party reaching an agreement with another party to meet specific needs or wants; the process of persuading or influencing someone to take a certain course of action in order to achieve a desired outcome.