Fundamentals of Business

Income

Consumption which, at the end of a period, will leave an individual with the same amount of goods (and the expectations of future goods) as at the beginning of that period.

Quality

ISO 8402-1986 standard defines quality as the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs. Subjective: Attribute, characteristic, or property of a thing or phenomenon that can be observed and interpreted, and may be approximated (quantified) but cannot be measured, such as beauty, feel, flavour, taste. People are prepared to pay more for quality. Example Organic eggs are more expensive than free range; free range eggs are more expensive than yard eggs. In fact, there has been an increase in consumption of organic goods in UK, because of their perceived quality.

Substitute goods

Different goods that, at least partly, satisfy the same needs of the consumers and, therefore, can be used to replace one another. Price of such goods shows positive cross-elasticity of demand. Thus, if the price of one good goes up the sales of the other rise, and vice versa. One of the requirements for perfect competition is that the products of competing firms should be perfect substitutes. When this condition is not satisfied, the market is characterized by product differentiation.
Horizontal segmentation of production firms on the basis of their primary generic product (such as automobiles, energy, food), sub-primary generic product (such as trucks, oil, grains), or sub-sub primary generic product (such as pickups, gasoline, wheat) ... and so on. Firms in the same industry are on the same side of the market, produce goods which are close substitutes, and compete for the same customers.

Complementary products pricing

Method in which one of the complementary products (shaving razor, for example) is priced to achieve maximum sales-volume, (without cost or profit considerations) to stimulate the demand for the other product (razor blades). The objective is to generate a level of profit that adequately covers losses sustained by the first product.
A complement or complementary good is defined in economics as a good that should be consumed with another good; it's cross elasticity of demand is negative. This means that, if goods A and B were complements, more of good A being bought would result in more of good B also being bought.
In marketing, complementary goods give additional market power to the company. It allows vendor lock in as it increases the switching cost. A few types of pricing strategy exist for complementary good and its base good:

Pricing the base good at a relatively low price to the complementary good - this approach allows easy entry by consumers (e.g. razor vs. cartridge)
Pricing the base good at a relatively high price to the complementary good - this approach creates a barrier to entry and exit (e.g. golf club membership vs. green fees).

Preference (or "taste")
is a concept, used in the social sciences, particularly economics. It assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they provide. In microeconomics, preferences of consumers and other entities are modelled with preference relations. In principle the consumer chooses a package within his or her budget such that no other feasible package is preferred over it; the utility is maximized.
Facilitating agent
generally does not handle tasks that require transfer of title, such as buying or selling. A facilitating agent is a catalyst to demand.
For example
High street business premises, Out of town shopping centres
NOTE:
An enterprise must not confuse facilitating agent from actual demand as not every passerby is a customer. Facilitating agent is a matter of logistics.