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You are here: Home > Educators > Level 2 Business and Economics Education > The Nature of Markets > What is a Market? |
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The Nature of Markets - What is a Market?Having answered the questions on the previous page, you should now realise that you know what a market is - every day we are all very involved in markets either as buyers or sellers. If you have a paper round, for example, then you are part of the market for newspapers - you are the link between the newsagent (the seller) and the consumer (the buyer). If you have a part-time job in a restaurant waiting on tables or doing the washing up, you are part of a market - the market for food. Again, you will be acting on behalf of the seller who is providing a good (the food) to the customer. Your job, however, will be in providing a service, which can make all the difference to the customer. You could offer an excellent waiting service by getting the customers' food to them quickly, clearing away the table efficiently and attending to their needs. This might make all the difference as to whether they have a good evening that they think represents value for money or not! We are now in a position to give a definition of a market.A market is any place that brings together a buyer and a seller to agree a price to exchange goods or services. A market can be very formal such as a shop, a financial market such as the Stock Exchange or it can be a car boot sale, selling goods from a street corner or an advert in a local newspaper. |
