Differntiation And Added Value Flashcards
1
Q
Added value
A
- increase in value that a business creates by under taking the production process
- adding value = difference between price of products and costs of input making.
2
Q
How to add value
A
- building a brand
- delivering excellent service
- product features and benefits
- offering convenience
3
Q
Building a brand
A
- reputation for quality that customers are prepared to pay for
4
Q
Delivering excellent customer service
A
- high quality, attentive personal service can increase the price customers pay
5
Q
Product features and benefits
A
- products are redesigned to add more features so business can increase price
6
Q
Offering convenience
A
- customers pay a little more for a product that they can have straight away or what saves time
7
Q
Benefits of added value
A
- charging a higher price
- creating a point of difference from competition
- protecting from competitors trying to steal customers by charging lower prices
8
Q
Product differentiation
A
- product is different from competitors in some way
9
Q
competitive advantage
A
- when a business has a competitive advantage over other businesses- have more market share
- cost advantage
- differentiation advantage
- Barrie’s to entry
10
Q
Cost advantage
A
Operating efficiently to be cheaper than competition
11
Q
Differentiation advantages
A
- business creates superior products at a higher price to build customer loyalty
12
Q
Barriers to entry
A
- making it difficult for other businesses to get into the market
