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Can Cell Phones Be Categorized As Mary Has Stated In Her Memo

713 Words3 Pages

Questions 2: Can cell phones be categorized as commodities as Mary has stated in her memo? Discuss the difference between commodities and non-commodities with Camp Bowie Technologies’ requirements for cell phones in mind. Commodities are defined as standard articles of trade or commerce. Additionally, they are similar goods or services purchased within the company. Usually, these items are also usually used as inputs in the production of other products or services. There is also minimum differentiation in the product or services that commodities provide, which makes it hard to determine exactly who produced them or where they created. For instance, it’s hard to determine who produced the wheat purchased to be used in the bakery shop by simply tasting the product. On the other hand, …show more content…

How would these differences influence the process in which value are assigned to competing offers which are being compared? The motivation behind purchasing decisions made by businesses and consumers differ significantly. When organization purchase equipment, they plan to utilize them in ways that will help the business attain the set goals and objectives. The purchased items are strategically sought after as they play a major part in helping the organization generate value in ways that will help cover the costs incurred and increase the overall profit. On the other hand, the consumers buy products depending on their need and wants. In other word, the goods consumers purchase can be used as necessities for survival for instance food items; or sometimes they can be bought for luxury or entertainment. In the world we live in now the consumers have a lot of choices of different products and brands to buy from. Factors such as psychological, social and sometimes personal, generally influence the customers decision on how they select the products as well as what brand to

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