Adding value

• What is the primary purpose of businesses?

  To meet customer needs
• How do businesses meet customer needs?

  By organizing resources to provide goods and services
• What does adding value to goods and services help a business do?

  Sell more products
• What is added value?

  The difference between selling price and cost price
• What is a good?

  A product that can be touched
• What is a service?

  Something intangible provided by a business
• How does adding value affect profit?

  It increases the amount of profit
• What are some methods a business can use to add value?

  • Convenience: Saves customers time
  • Branding: Increases brand trust
  • Quality: Higher quality products
  • Design: Attractive product features
  • Unique Selling Point (USP): Stands out from competition
• What is an example of adding value through convenience?

  Ready-prepared food, like vegetable curry
• How does branding add value?

  Encourages customers to pay more due to trust
• Why do customers pay more for quality?

  They prefer higher-quality products
• How does design add value to a product?

  By enhancing product features and presentation
• What is a unique selling point (USP)?

  Something that makes a product stand out
• How can local sourcing be a unique selling point?

  It makes the product more environmentally friendly