Tuesday, August 11, 2009
Mutually beneficial exchange
In a transaction in the market economy, a firm gains revenue, which thus leads to more profits/market share/sales. A consumer on the other hand gains a need/want that is satisfied, utility, reliability and value for money from the purchase of a good. As no one has to buy goods from any one supplier in the market economy, firms must entice consumers to buy goods, and thus seek to satisfy consumers' utility. If an exchange is not mutually beneficial in nature, it is not consistent with contemporary marketing ideals.
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