Business Education 9 - Chapter 6 Test Flashcards
price fixing
competitors agree on the prices they will charge their customers, in an effort to reduce competition
bid rigging
an unfair pricing practice in which companies bidding for businesses arrange bids between themselves instead of truly competing
tenders
an invitation to bid on a contract and do the necessary work as outlined in “request to tender” document
abuse of a dominant position
anti-competitive activites by a dominant firm
exclusive dealing
an illegal requirement by a manufacturer that a dealer carry its products exclusively
refusal to deal
an illegal practice of refusing to sell products to small retailers, thereby reducing competition
merger
one company combines with or takes over the ownership of one or more other companies
benefits of competition
- creation of new businesses
- businesses lead to other businesses
- effective way to compete
- productivity
productivity
if fewer resources are used per unit produced, productivity increases
criminal offences
- price fixing
- bid rigging
- tenders
civil law matters
- abuse of a dominant position
- exclusive dealing
- refusal to deal
- merger
government regulation
act that governs businesses in Canada and contains both criminal and civil provisions
why is competition good for us?
leads to better products and better prices
how can a company increase market share?
- increasing size of overall market
- taking away sales from competitors
market segment
any part of an overall market that has common characteristics
how can consumers be identified?
- demographics
- lifestyle
demographics
the study of obvious characters that categorize human beings (age, genderm family life style, income level, ethnicity and culture)
gatekeeper
a person who makes buying decisions for others
baby-boom group
the large group of people born after WW2, between 1945-1965
lifestyle
the way people live, which includes their values, beliefs, and motivations
psychographics
the study of lifestyles
introverted consumers
interested in their own self-concept (identity, fashion)
extroverted consumers
interested in the opinions of others (uses products to reward achievement)
competitive market
- specific types of products as well as the companies that produce them
- money spent annually by consumers on the specific product
the quest for market share
the % that one business’s product takes of the total dollars spent by consumers on similar products
service competition
every business provides some type of service
value added service
an extra service added to attract or retain customers
service
a service is tangible (unable to be touched)
the service sector
the part of the economy composed of businesses that provide mainly services
competition in the service sector
convenience, degree of service, selection, reputation, price
