in business system
2006-11-22 22:13:32 · 2 answers · asked by Anonymous in Social Science ➔ Economics
"Consumption is the sole end and purpose of all production" of services and products, they are based on needs of the consumer.
A consumer has choices to fullfill tis need and they compete with each others.
Expample: you have a need for transportation from New York to Florida. You have several alternatives:
Fly with a regular airline
Fly with a cheap airline
Drive with a car
Rent a car and drive
Take the train
Take a ship, boat
Walk
....
For the purpose: "Transportation from NY to Florida" all this alternatives compete with each other.
It is significant for a company to consider the alternatives and competing products/services/technologies when they consider to market a new product as this can reduce the success of it. It is often overlooked in Marketing/Business Plans !
2006-11-23 18:02:44 · answer #1 · answered by Robert K 6 · 0⤊ 0⤋
It is when the same or similar type of service or product is competing against another to be purchased or have their services used and paid for.(If you have 20 different travel agents selling holidays to Europe, you have the choice which one you have over the other)
2006-11-24 01:44:56 · answer #2 · answered by Social Science Lady 7 · 0⤊ 0⤋