Topic 1 Activities
A.
A supermarket is a large, departmentalized, self-service retailer that specializes in wide
assortments of foodstuffs and a few nonfood items. Prices are moderate, profit margins are slim.
Supermarkets seek to meet consumer demands by providing larger, one-stop stores (all the way
up to the giant superstores) and scrambled merchandising. Convenience stores are like miniature
supermarkets. They carry only a limited line of high-turnover convenience goods. Convenience
stores offer convenient locations, long hours, and fast service. Prices are usually higher, and
gross margins are moderately high. Most convenience stores are self-service organizations.
Many also practice scrambled merchandising to compete with full-service gas stations.
Even though greater, modern convenience stores may have a wider assortment of things
than supermarkets, the selection is still restricted, with many locations offering only one or two
options. Because convenience stores order fewer quantities of product at higher per-unit pricing
from wholesalers, prices in a convenience store are frequently higher than those in a
supermarket, mass merchandising store, or auto supply store. Some convenience stores resemble
corner markets, however they frequently lack the same level of food selection.
To accommodate more commodities on the store shelves, convenience store product
containers are frequently smaller and have a lower product quantity. This also lowers the
perceived cost differences in supermarket full-size packaging. When a visitor, such as a hotel
guest, does not want or otherwise unable to carry excess product with them when they depart,
smaller packaging decreases waste.
B.
Economic value is a person's assessment of an economic benefit based on the advantage
they receive from it. It is frequently calculated using the person's willing to spend for the good,
which is usually expressed in money units. The economic value of a good or service should not
be misconstrued with market value, which is the market price for a good or service, which might
be more or lower than the economic value assigned to it by any individual.
A person's preferences define the economic value of a good or service, as well as the
trade-offs they are prepared to make in order to receive it. If a person has an orange, for example,
the economic value of that fruit is the benefit that they gain from using it. If they plan to eat the
orange, the economic worth is the pleasure and nutrients they expect to gain from doing so.
Every time one of your consumers buys something from you, they're choosing that what
you have to offer is worth more than anything else their money could buy at the time. One of
your first tasks when you build your service should be to discover what your potential clients
appreciate more than the purchasing power of their wallets.
Everyone has subtly different values at any given time, but when evaluating a potential
purchase, there are a few typical patterns that emerge.
Economic value cannot be directly quantified because it is subjective and relies on a
person's goals. However, other approaches for quantifying or estimating economic worth have
been devised. The price individuals pay for an economic good is the traditional measure analysts
use to assess how much they value it.
When a person buys something, they give up a large amount of cash in return. Because
individuals value both the benefit they acquire and the money they give up based on their
subjectivity, intended use (for the item or the money), it is clear that they must place a higher
financial benefit on the good than on the amount of money they give up. As a result, one
approach to estimate the economic value of a thing is the price that a customer pays for it.
Eudaimonic value is another method of determining a product's economic value. Based
on prior transactions, eudaimonic valuing uses statistical regression to analyze the economic
value consumers attach to the unique features of a good. These attributes, or qualities, of the
good will indirectly influence the economic worth of the good since they indicate how well the
good will suit an individual's intended purpose for the good. Economists can use statistical
models to estimate the economic value of a particular commodity based on its features, such as
how the features of similar goods historically impacted the price of similar goods in previous
transactions.
Companies set pricing for their products or services based on the economic worth to the
customer. It is not generated from a specific simple algorithm, but it takes into account a
product's tangible and intangible value. The tangible worth of a product is determined by its
functionality, whereas the nebulous value is determined by consumer attitudes regarding product
ownership.
A durable pair of footwear that provides protection and support throughout athletic
activity, for example, has a monetary worth to a consumer. The sneaker's brand name or celebrity
affiliation, on the other hand, might lend intangible worth to the footwear. Surveys, focus groups,
and other approaches can be used by marketers to determine how much value customers will
place on the sneakers based on their qualities.
One personal experience I have aligned with economic value is when I was a kid, up until
now that I’m already an adult, I’ve always placed so much value on street foods, or any cheap
food out there. I used to spend most of my time hanging out with my friends eating cheap food.
We also used to eat slightly expensive stuff, but eating street foods have always been more
special for me. People might perceive street foods as cheap and low-class, but I’d always choose
it over fine-dining restaurants where you need to act very prim and proper you can’t even enjoy
what you’re eating. I can pay hundreds of pesos for street foods as long as I’m with people I’m
comfortable with, but I refuse to pay the same in restaurants.
Customers are usually emotional when it comes to commercial transactions, even if they
aren't always right. Consumption is not a detached act, but rather an emotional experience with
both pleasant and negative emotions. Furthermore, depending on what the event means to the
customer, each situation produces distinct feelings. Emotions are the core motivators for action,
and they are even part of product/service branding.
Despite the fact that some entrepreneurs wish to remove emotions from the entire
business experience, emotionally aware management methods are critical to the organization's
long-term success. Keeping customer and employee emotions positive fosters employee
dedication, excitement, and energy, and encourages customers to return.
The manner a situation is handled is just as important as the situation itself. In reality,
emotions are just as good as any other basis for buyers to make sound purchasing decisions.
Even though emotions are difficult to manage and quantify, they must be considered while
striving to develop long-term client relationships. Service providers can help lead emotions in the
best path for everyone involved by being aware of emotional connections inside a transaction.
This necessitates self-awareness and other awareness, involvement and objectivity, control and
reaction, self-focus and outer focus, and self-focus and outer focus.
