added value chap60 Flashcards
1
Q
What is added value?
A
Added value is the difference between the price A business charges for the product/service and the cost involved of the componentsWhich are required to make the product/service
2
Q
How can a business add value?
A
Design - develop new designs to make a product unique
Production - Quality and efficiency adds value
Marketing - creating an image that makes the product more desirable
Good service - Example customer service and delivery services
3
Q
Benefits of adding value…
A
- charge a higher price – increase profit
- opportunity to make the product more unique
- protection against competitors offering lower prices
- Customer loyalty
