Key terms test 4H C KEEP

Question 1

Multi channel

Answer 1

Using a number of methods to reach a customer, including physical stores and e-commerce

Question 2

Undercut

Answer 2

Sell the product for a lower price than competitors

Question 3

Price war

Answer 3

When competing businesses try to undercut each other by lowering their prices, leading to an ongoing battle where only the customer benefits, not the businesses.

Question 4

Product differentiation

Answer 4

Designing a product with some unique features that distinguish it from similar products sold by competitors

Question 5

Brand loyalty

Answer 5

A customers willingness to buy a product from a particular business rather than from its competitors.

Question 6

Market share

Answer 6

The percentage of the total sales of a product in a market that is taken by one business in the market.

Question 7

Recession

Answer 7

A period of economic decline characterised by the fact that the economy has failed to grow for six consecutive months

Question 8

Promotional mix

Answer 8

The combination of promotional activities that a business uses to make customer aware of a product, with the aim of increasing sales

Question 9

Business plan

Answer 9

A document that outlines how an entrepreneur is going to set up a new business