Pricing
A strategy in which the primary goal is to keep prices in line with the competition’s.
What is competition-based pricing?
The process of moving products from another location to customers.
What is distribution?
(Multiple Choice)
How does associative thinking help businesses consider ways to expand?
A. It can help businesses develop related products to promote
B. It provides the financial structure required for expansions
C. It is a required part of the creative process
D. It is often used in advertising
What is A, it can help businesses develop related products to promote?
(Multiple Choice)
An example of diversification.
A. two rival pizza establishments opening in the same area
B. a gas station adding a car wash
C. a successful office-supply store opening a second branch
D. an air-conditioning repair business adding plumbing services
What is B, a gas station adding a car wash?
A formal network to promote business in a particular city or area.
What is the chamber of commerce?
Charging prices at the top of the market to cultivate brand loyalty and high profit margins per sale.
What is high-end pricing?
New ideas or concepts.
What is innovation?
(Multiple Choice)
One way in which knowing the economic trends in an area could help an entrepreneur.
A. A growing area guarantees success for a new business.
B. Economics are the most important factor in customer purchasing decisions.
C. If an area is growing, it will likely need new businesses.
D. There are no businesses that would do well in a declining region.
What is C, if an area is growing, it will likely need new businesses?
(Multiple Choice)
The difference between supervisors and management.
A. Supervisors generally have more power than managers.
B. Supervisors work more directly with support staff.
C. Managers are less concerned with financial status of their departments.
D. Supervisors can only be hired from existing support staff.
What is B, supervisors work more directly with support staff?
Skills that help fill a deficit or lack.
What are complementary skills?
The difference between the manufacturing or wholesale prices of an item or cost of a service and what a customer is charged.
What is markup?
To convert assets into cash.
What is liquidation?
The process of generating as many thoughts as possible without considering their future development.
What is brainstorming?
(Multiple Choice)
All of the following might occur in the development phase EXCEPT:
A. finalizing a product design
B. contacting suppliers about the availability of needed items
C. calculating the price of a product
D. selling the product to consumers
What is D, selling the product to consumers?
Measuring the goals of a business against the results.
Raising or lowering rates to mirror demand.
What is price elasticity?
A change of an existing object or product.
What is modification?
The use of metaphors to communicate or explore an idea, concept, or problem.
What is metaphorical thinking?
(Multiple Choice)
An example of diminishing returns.
A. the value of an investment declines at a steady rate over the course of a year
B. a pair of dogs has seven puppies in their first litter and only three in their second
C. a farmer increases the crops planted but gets increasingly smaller harvests
D. a business decides to open a second business, which struggles, but opens a third anyway
What is C, a farmer increases the crops planted but gets increasingly smaller harvests?
Funding for a venture provided by individuals or private donations.
What is crowd funding?
(True or False)
Price will factor less in decision making if the product meets an immediate need.
What is true?
The ability to understand ideas or concepts or to create.
What is conception?
(Multiple Choice)
How does a business determine the markup on a product or service?
A. by matching the closest competitor
B. by checking online prices
C. by calculating the profit that will keep the business going
D. by considering how much the product is worth to the consumer
What is C, by calculating the profit that will keep the business going?
(Multiple Choice)
Once a business has saturated the market, it should:
A. cut back so that there will be room for growth
B. plan on expanding in the same area
C. develop a new product or service
D. all of the above
What is C, develop a new product or service?
Turning to a collection of people to accomplish a task.
What is crowd sourcing?