2.6 - Competition & Customer Service Flashcards
1
Q
What is competition?
A
Competition in business is rivalry between businesses.
2
Q
What benefits come with competition?
A
- Can be healthy as it encourages businesses to keep improving
- Results in a greater efficiency
- Greater competition causes prices to fall
3
Q
Explain the four strategies to manage competition.
A
Pricing- Businesses will keep their prices the same level or slightly lower than competitors
Product- They will expand their range of goods. They make sure their product is as good as their competitors
Effective customer service- They will try to beat competitors by providing better services
Promotion- Advertise widely and use promotional offers like discounts
4
Q
Customer service
A
The providing of services for customers before during and after sales.
