Profit & Costs
The money a business earns from selling products or services.
Revenue
The amount of a product customers want to buy.
Answer: Demand
What do you call a person who buys a product or service.
Customer
What do you call the activities businesses use to attract and persuade customers to buy their product?
Marketing
A café is always full but makes little money because expenses are high. Why is this so?
Because of high costs!
Money a business spends to operate, such as rent or salaries.
Costs (or Expenses)
When the price of a product goes down, this usually happens to demand.
Answer: Demand increases
What do you call a specific group of people a business wants to sell to.
Target market
What is it called when a business uses a name, logo, colours, and style so customers can recognise it easily?
Brand
How does lowering prices leads to more customers buying the product?
By increasing the demand.
The amount left after costs are subtracted from revenue.
Profit
When customers choose a different brand because your product is too expensive.
Customers switch to substitutes (or Switching to competitors)
What is it called when a business collects reviews, surveys, or complaints to improve its product?
Customer feedback
What is it called when a business uses posters, discounts, influencer posts, or Instagram ads to encourage people to buy?
Promotion
A business sells a great product, but sales are low because most students don’t even know the product exists. What is this business doing poorly?
Poor marketing
Costs that stay the same even when sales change
Fixed costs
A limited-time discount that makes more people buy now instead of later. What would happen to the firm's sales?
Sales increase in the short term (or Increased demand temporarily)
What is it called when a business splits customers into groups like “students,” “parents,” and “teachers” based on who is most likely to buy?
Market segmentation
What is it called when customers repeatedly choose the same company because they’ve had good experiences and believe it will deliver quality?
Trust (or Brand loyalty)
A competitor drops their price from $5 to $4, so your business changes its price to protect sales. What is this type of decision called?
Pricing strategy
A business increases sales but still earns less profit because expenses rise faster than revenue.
Costs are increasing faster than revenue (or High costs reducing profit)
A bubble tea shop raises its price by $1. Sales drop a lot, and total revenue falls. This shows demand is very _____.
Price-sensitive (or Highly elastic)
A company sells an expensive “premium” water bottle. They advertise it to everyone, but it barely sells. Later they realise it would sell best to gym-goers and athletes. What is it called when a business chooses the specific group it should focus its marketing on?
Targeting (or Choosing a target market)
A company runs amazing ads and gets lots of first-time customers. But the staff are rude, orders are wrong, and complaints go unanswered — so customers don’t return and tell friends not to go. What is this situation called, when the service experience harms how people see the brand?
Poor customer experience damaging the brand (or Weak service)
A café wants higher profit over the next year, but refuses to improve slow service or low-quality food because “it costs too much.” Customers slowly stop coming back. What concept explains why this thinking hurts long-term profit?
Answer : Loss of customer loyalty (or Short-term thinking hurting long-term success)