The Environment and Market

Summary

This script discusses the fundamental differences between needs and wants, emphasizing that needs are essential for survival while wants are desires for comfort and luxury. It also explores the market's variety of products and services, distinguishing between tangible and intangible items, and the challenges in evaluating service quality. The script highlights the importance of understanding these concepts for generating business ideas and meeting customer expectations.

Takeaways

• 🍲 Basic needs are essential for human survival and include food, clothing, shelter, education, and healthcare.
• 🛍 Wants are desires that are not essential for survival but add comfort and luxury to life.
• 🚶‍♂️ Needs are limited and must be fulfilled, whereas wants are unlimited and are optional.
• 🏡 The ancient three basic needs of man were food, clothing, and shelter.
• 📈 Over time, education and healthcare became integral to improving the quality of life.
• 💡 Needs can help generate business ideas as they are essential to every individual.
• 🛒 Products are tangible items available in the market for acquisition, use, or consumption.
• 🛠 Services are intangible and arise from the output of one or more individuals.
• 📦 Tangible goods are physical objects that can be touched, while intangible goods have value but are not physical entities.
• 📈 Digital files, such as music and software, are examples of intangible goods that can become tangible if physically produced.
• 🔄 Products can be perishable or imperishable, while services are considered perishable and not stored for later use.

Q & A

What are the learning objectives of the module discussing needs and wants?

The learning objectives are to identify the players, the different products and services available in the market, and the profile of potential customers.

What are the basic needs of a human being according to the transcript?

The basic needs of a human being include food, clothing, shelter, education, and healthcare.

How do needs differ from wants in terms of necessity?

Needs are essential for survival and are limited, while wants are desires for comfort and luxury and are unlimited.

What is the impact on a person if their needs are not satisfied?

If needs are not satisfied, it may result in illness, inability to function properly, or even death.

How are wants characterized in the context of the script?

Wants are characterized as optional, varying from person to person and time to time, and signifying wealth and an expensive way of living.

What is the primary difference between a product and a service as discussed in the transcript?

The primary difference is that a product is a tangible item, while a service is an intangible item arising from the output of one or more individuals.

Why are tangible goods easier to return than intangible goods?

Tangible goods are easier to return because they are physical objects that can be tracked and have a physical state that can be assessed for return, unlike intangible goods which can be copied or used without leaving a trace.

What is an example of an intangible good mentioned in the script?

An example of an intangible good is a music file that is downloaded from the internet.

How can intangible goods be assessed for quality before purchase?

Intangible goods can be assessed through samples, free trial periods, or by reviewing the credentials and past work of the service provider.

What is the difference between perishable and imperishable products?

Perishable products are those that spoil or become unusable over time, like fresh foods. Imperishable products do not spoil and can be stored for long periods, such as jewelry and automobile parts.

How do services differ from products in terms of perishability?

Services are considered perishable as they are consumed at the moment of production and cannot be stored for later use, unlike products which can be manufactured and stored for sale.

What are some examples of intangible services mentioned in the script?

Examples of intangible services include education, financial services, legal advice, consulting, and entertainment.