how to survive as a small business:

Question 1

product differentiation

Answer 1

• creates value
• highlights the quality of the product
• non price competition = taste/style
• brand loyalty
• no suitable substitutes in the market

Question 2

USP

Answer 2

way of promoting the features of the product or service of the business e.g.:
- quality
- customer service
- delivery
- technical features/functions

Question 3

flexibility in responding to customer needs

Answer 3

a competitive advantage over bigger firms if it responds quickly to customer needs can do this by:
- market research
- gaining feedback
- tracking social media
- collect data from customer transactions

Question 4

customer service

Answer 4

• give customers more for their money
• positive word of mouth = brand awareness
• loyal customers = repeat purchases
• e.g. efficient service, fast delivery and flexible payment terms

Question 5

eCommerce

Answer 5

• increase sales on the internet
• low cost = limited start-up costs
• huge potential market to sell to