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This strategy involves setting a low initial price to quickly gain market share
What is Penetration Pricing
This method assessess the relationship between costs, volume and profits
What is Breakeven Analysis
The estimated operational capacity that results in efficient business operations.
What is Effective Capacity
This method involves creating incentives to boost sales within a target market.
What is Sales Promotion
This describes the additional benefits and services provided with a product.
What is Augmented Product
The method of forecasting future demand using qualitative judgements rather than quantitative data
What is qualitative forecast
The process of selecting a portion of the target population for research
What is Sampling
A type of layout where equipment is arranged based on the steps in the production process
What is Product Layout
The network of independent organizations setting standards to protect consumers
What iare Quality Standards
The analysis aimed at reducing costs while maintaining or improving product performance
What is Value Anlysis
The amount of stock ordered when inventory hits a specific low point
What is Reorder Quantity
This strategy aims to maintain the same quality standards across all operations
What is Quality Assurance
This term refers to costs that remain fixed up to a certain point and then vary.
What are Semi-Variable Costs
The practice of revitalizing products or ideas within an organization
What is Corporate Entrepreneurship
The concept of increasing a product’s worth through service and features.
What is Value Added
The concept where a business acts to avoid negative societal or environmental impacts
What is Social Responsibility
This term refers to the benefits gained from reduced per-unit costs as production scales up.
What are Economies of Scale
The approach where a firm prioritizes high quality and performance, believing this will drive demand
What is the Product Concept
The point at which a business needs to reorder stock to avoid shortages
What is Reorder Level
A pricing strategy based on what consumers perceive a product is worth.
What is Perceived Value Pricing
The qualitative forecasting technique using anonymous expert opinions
What is the Delphi Method
The process of splitting the market into groups with similar characteristics
What is segmentation
A rational approach where decisions are made based on monetary gains.
What is Economic Animal
The intangible economic activity that is consumed at the point of sale.
What are services
A channel where products go through intermediaries before reaching consumers.
What is an Indirect Distribution Channel