Economic Principles
The concept that price is determined by how much of a product is available and how much people want it.
What is supply and demand?
A customer pays $20 for an item that costs $7. This is the amount of change you give.
What is $13?
A person who makes quick purchases without planning.
What is an impulse buyer?
This document summarizes your education, skills, and work experience.
What is a resume?
This is the positive outcome a customer gets from a product’s feature.
What is a benefit or utility?
These are the three basic economic questions every society must answer.
What to produce, how to produce it, and for whom to produce?
An item costs $50 with a 6% sales tax. This is the total price.
What is $53?
Recommending an additional item that complements the original purchase.
What is suggestive selling?
This document introduces you to an employer and explains why you’re applying.
What is a letter of application?
Demand that changes a lot with price versus demand that hardly changes.
What are elastic and inelastic demand?
These are the five types of utility that add value to a product or service.
What are form, place, time, possession, and information utility?
A 12-pack of soda costs $6. This is the unit price per can.
What is $0.50?
Knowing these helps a salesperson explain why a product is worth buying.
What are the features and benefits?
This is when a job interview actually begins.
What is the moment you arrive at the location or interact with staff?
A shopper's perception of a business based on factors like layout, cleanliness, and branding.
What is store image?
A system where individuals can own businesses and make decisions, compared to one where the government controls production.
What is the difference between a free enterprise system and a command economy?
You’re given 4 rolls of quarters and 3 rolls of nickels. This is the total value.
What is $41.25? (4 rolls x $10 + 3 rolls x $1.25)
Recommending a more expensive laptop with better features is an example of this strategy.
What is up-selling
You should do this with your phone during an interview.
What is silence or turn it off?
A strategy where customers earn rewards for repeated purchases.
What is a customer loyalty program?
In this way, different economic systems provide support for people who cannot work.
What is through government programs (command/mixed) or charitable/voluntary means (traditional/market)?
A customer buys 3 items at $8.99 and 2 at $14.50, with 7% sales tax. This is the total cost.
What is $58.58?
(Subtotal = 3×8.99 + 2×14.50 = 26.97 + 29 = 55.97; Tax = 3.92; Total = 59.89)
These are the steps every salesperson follows to complete a transaction.
What are the steps of a sale?
1) Prospecting: finding and qualifying potential customers
2) Preparing: researching the company and their needs
3) Approach: making contact and arranging a meeting or presentation
4) Presentation: giving an effective pitch and demonstrating value
5) Handle Objections: addressing any concerns or questions from the customer
6) Closing: addressing any concerns or questions from the customer
7) Follow Up: nurturing the relationship and providing after-sales service
These are the people you list who you have developed meaningful relationships with and who can speak positively about your qualifications.
What are references?
Emotional, rational, or patronage-based reasons that influence buying behavior.
What are consumer buying motives?