12 Questions
What is added value in the context of business?
The difference between customer price and cost of inputs
Why is adding value important for businesses?
To pay fixed costs and make a profit
Which of the following is NOT a common method to increase added value?
Reducing product quality
What happens if no value is added to the materials a business buys?
Fixed costs cannot be paid, and no profit will be made
In the example given, why are customers willing to pay more for oven chips than for a bag of potatoes?
Because oven chips have added convenience and value
What do product and marketing teams constantly explore in order to increase added value?
Ways to enhance branding or product uniqueness
What strategy did Apple use to build a superior brand?
Quality materials, innovative design, and good marketing
How did Persil improve convenience for customers using dishwashing liquid?
Creating spill-proof tablets
What is a key feature of Jo Malone perfume products that enhances customer experience?
Beautiful packaging for an exciting opening experience
What allows MoonPig birthday cards to have a competitive advantage in the market?
Customisation options
What feature of the Samsung Galaxy Watch 5 helps it stand out in the market?
Robust health tracking tools
Which factor allows firms to charge higher prices for their products?
Innovative features and quality branding
Explore the concept of adding value in business processes by creating products or services that are worth more than the cost of raw materials. Learn how the added value is calculated and its importance in determining the price customers are willing to pay for a product.
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