Know the Business Words
The total money a business receives from sales is called what?
Revenue
A person who buys or uses goods and services is called what?
Consumer
The amount a customer pays for something is called what?
Price
Businesses trying to attract the same customers are called what?
Competition
Customers repeatedly choosing the same business or brand shows what?
Loyalty
Nike and Adidas selling similar products is an example of what?
Competition
A store quickly replaces your damaged shoes. This is good what?
Customer Service
A backpack lasts for five years without ripping. This suggests good what?
Quality
A store sells 10 shirts for $20 each. What is its revenue?
$200
Teenagers who might buy a new gaming headset are part of the company's what?
Market
One pizza shop offers free delivery while its competitors charge for it. This is an example of what?
Differentiation
What simple question does a value proposition answer?
“Why should I buy from you?”
A restaurant's customers keep returning every Friday. What are they showing?
Loyalty
A business sells 25 items for $10 each. What is its revenue?
$250
Give one way a business could differentiate itself from competitors.
Examples: lower price, better quality, free delivery, better service, unique products
Store A sells shoes for $70. Store B sells them for $70 but offers free delivery. What is one way Store B differentiates itself?
Free delivery
A company says, “Choose us for high-quality products, low prices, and free shipping.” What is this describing?
Value Proposition
Why can good customer service create loyalty?
Customers who have good experiences may return to the business.
Why can good customer service create loyalty?
Customers who have good experiences may return to the business
A business sells 40 hoodies for $25 each. Calculate its revenue.
$1,000
Explain the difference between differentiation and value proposition.
Differentiation is what makes the business different; value proposition explains why customers should choose it.
Two restaurants sell the same food. One is cheaper; the other has faster service. What are two ways they're competing?
Price and service
Why isn't the lowest price always the best choice for a consumer?
Quality, service, convenience, or other benefits may be worth paying more for.
This tells customers why they should choose one business or product instead of its competitors.
Value Proposition
A business has $12,000 revenue and $8,500 expenses. What is the profit?
$3,500