Why do businesses have little control over the price of their products in competitive markets?

By charging more than market price they lose out on sales

What is 'surge pricing'?

Constantly changing the price in response to demand

Which of these is not an example of product differentiation?

Lowering the products or services price

Which one of these is not a major source of product differentiation?

Difference in the amount of imported products

What is meant by oligopoly?

limited competition, market is shared between a few firms

Disadvantages of market mapping for a bakery

Tastes change and so it may quickly become out of date, Location much more important than aspects of product

What is a market map used for?

Plots brands in the market according to customer's needs

What are the effects on a product when value is added to it? (in market segment terms)

Consumers switch to that product's brand from another brand, That product becomes successfully differentiated

What is a dynamic market?

A market that is constantly changing

What does repositioning mean?

Changing the product to appeal to a different market segment

Competitive Advantage can come from...

Reputation, Innovation, Relationships with suppliers

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Economics B Theme 1 Week 7

18 termsStudBud Administration147 plays

How do firms compete?

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Questions 18

Answers

1
Why do businesses have little control over the price of their products in competitive markets?
manufactures of the products decide the set prices for them
They cannot charge more due to law restrictions
By charging more than market price they lose out on sales
Regulators stop businesses from overcharging
2
What is 'surge pricing'?
Constantly changing the price in response to demand
Energy pricing
Higher prices for people at the front of a queue
Randomly changing the price
3
Which of these is not an example of product differentiation?
Lowering the products or services price
Improved product packaging
Making the USP of a good or service clear
Establishing a strong brand image for a good or service
4
Which one of these is not a major source of product differentiation?
Differences in functional features or design
Differences in availability
Difference in the amount of imported products
Difference in quality combined with difference in price
5
Competitive Advantage is how a business...
Uses on-pack competitions
Gains an edge over its rivals
Prices its products
Beats other businesses through unfair competition
6
What is meant by oligopoly?
the business changes markets due to insufficient customers
Stakeholders influence the business to sell certain products
The business is controlled by shareholders
limited competition, market is shared between a few firms
7
Is the electronic devices market a...
Dynamic market
Homogeneous market
niche market
Stable market
8
When a business combines factors to produce something more desirable to the customer:
Profiteering
Adding value
Pure luck
Competitive advantage
9
Which of these businesses is not an interface business
AliBaba
Argos
AirBnB
Uber
10
Disadvantages of market mapping for a bakery
Tastes change and so it may quickly become out of date
It helps them to find a gap in the market
Location much more important than aspects of product
High quality and low prices aren't viable
11
Structural change is...
Related to buildings
Not very important
A one-off and permanent
Temporary
12
What is a market map used for?
Plots brands in the market according to product features
Plots brands in the market according to customer's needs
Displays the way in which customers view a brand
Shows where each brand is according to its target market
13
What are the effects on a product when value is added to it? (in market segment terms)
People are less likely to pay a higher price
Consumers switch to that product's brand from another brand
That product becomes successfully differentiated
Fixed costs increase
14
Which of these is not a way in which businesses compete?
Product differentiation
Branding
Collaboration
Pricing
15
What is a dynamic market?
A market that changes its customer base frequently
A market which targets a large range of customers
A market that is constantly changing
A flexible market
16
What does repositioning mean?
Changing the brand name
Changing the product to appeal to a different market segment
Paying the employees more money
Changing the location of the business
17
Markets which are always changing can be described as...
Static
Dynamic
Ecstatic
Efficient
18
Competitive Advantage can come from...
Reputation
Innovation
Relationships with suppliers
Consumer Sovereignty

Economics B Theme 1 Week 7 Flashcards | StudBud