deck_17004438

Question 1

Revenue Expenditure

Answer 1

Expenditure on a company’s general operational costs (day to day running costs)
e.g. paying wages, repayment of mortgages/loans, paying suppliers, utility bills

Question 2

Capital Expenditure

Answer 2

Expenditure on investment
e.g. factories, equipment, technology

Question 3

Internal Sources of Finance

Answer 3

Personal funds, retained profits, the sale of assets

Question 4

External sources of finance

Answer 4

Equity (when the equity provider receives partial ownership)

Question 5

Profit Centre

Answer 5

Anything that contributes to a business overall revenue while also generating costs

Question 6

Cost Centre

Answer 6

A department or unit of a company that contributes to solely costs and not revenues

Question 7

Dynamic Pricing

Answer 7

Pricing strategy which adjusts pricing in correlation to demand.

Question 8

Contribution Pricing

Answer 8

Pricing strategy that is set off of direct costs and allocated indirect costs.

Question 9

Competitive Pricing

Answer 9

Meeting competitive prices, refunding difference in price, discount for new consumers

Question 10

Loss Leader

Answer 10

Pricing strategy that incurs a loss on some goods/services to attract consumers to buy other goods that are profitable.

Question 11

Cost Plus

Answer 11

Price that accounts for the cost of production of good as well as the business desired profit margin as a mark up

Question 12

Penetration Pricing

Answer 12

When a business sets a low price for a new product to capture consumer attention then increase price once they have enough consumers

Question 13

Predatory Pricing

Answer 13

Pricing strategy that attempts to create unachievable barriers to entry in an industry by making profit margins so low. Also used to push competitors out of the market.

Question 14

Premium Pricing

Answer 14

Sets a high price for good/service to make it appear as luxury

Question 15

Price Skimming

Answer 15

Applicable when firms have first movers advantage and demand for good is inelastic as there aren’t many alternatives so higher prices are set. When competitors enter market at demand becomes more elastic prices are lowered.

Question 16

Above the line promotion

Answer 16

Any form of paid for promotional method through independent mass media sources. Examples include: television, magazine, radio, newspaper

Question 17

Below the line promotion

Answer 17

Form of paid for promotion method that targets consumers specifically as opposed to through mass media. This aims to avoid an intermediary and promote directly to consumer. Examples include: Email, telemarketing, in person

Question 18

Through the line promotion

Answer 18

Promotional strategies that integrate both mass media sources and directly target consumers. Examples include: Social media and online ads

Question 19

Place

Answer 19

Distribution and distribution channels

Question 20

Price

Answer 20

Pricing strategies

Question 21

Product

Answer 21

brand, brand image, product life cycle

Question 22

Promotion

Answer 22

Above, below and through the line

Question 23

People

Answer 23

The person who the customer interacts with and whom delivers the service

Question 24

Process

Answer 24

The way in which the service is provided. Examples include: Waiting time, customer-care, after sales-care, payment methods, delivery process

Question 25

Physicial evidence

Answer 25

How well the tangible/environmental factors fit the part that the service offers