1
Q
What is added value?
A
Added value is the difference between the price A business charges for the product/service and the cost involved of the componentsWhich are required to make the product/service
2
Q
How can a business add value?
A
Design - develop new designs to make a product unique
Production - Quality and efficiency adds value
Marketing - creating an image that makes the product more desirable
Good service - Example customer service and delivery services
3
Q
Benefits of adding value…
A
- charge a higher price – increase profit
- opportunity to make the product more unique
- protection against competitors offering lower prices
- Customer loyalty
Business
flashcards
Decks in class (19)
# Cards
-
place chap568
-
Forecasting chap108
-
added value chap603
-
Supply & damand chap1412
-
The EU, emerging markets...chap158
-
International trade and free trade chap166
-
Political, social and ethical factors chap179
-
GDP and the business cycle chap1812
-
Economic policy chap1910
-
Cashflow and working capital chap318
-
Income statements chap339
-
Marketing within business environment chap5010
-
Market research chap518
-
Identifying customer needs chap5210
-
anticipating consumer needs chap537
-
product chap546
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Price chap555
-
Promotion chap574
-
objectives n external influences chap592
