Podcast
Questions and Answers
What determines the importance of services in the mind of the consumer?
What determines the importance of services in the mind of the consumer?
What features are matched with benefits in the context of bicycles?
What features are matched with benefits in the context of bicycles?
The features that seem faster are faster, comfort equals comfort, and mountain equals mountain.
What are the three market segments identified in the Bikes Simulation?
What are the three market segments identified in the Bikes Simulation?
Recreational, Mountain, and Speed.
Which factor does NOT affect demand?
Which factor does NOT affect demand?
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What do demand curves represent?
What do demand curves represent?
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What is demand forecasting?
What is demand forecasting?
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What is true about pricing decisions in relation to price elasticity?
What is true about pricing decisions in relation to price elasticity?
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What distinguishes fixed capacity from operational capacity?
What distinguishes fixed capacity from operational capacity?
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What does lean manufacturing aim to achieve?
What does lean manufacturing aim to achieve?
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What are the three main costs in production?
What are the three main costs in production?
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What is pro forma accounting?
What is pro forma accounting?
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The three financial statements in simulations are the balance sheet, income statement, and ________.
The three financial statements in simulations are the balance sheet, income statement, and ________.
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What is the balanced scorecard?
What is the balanced scorecard?
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Study Notes
Customer Needs and Value Hierarchy
- Defines consumer expectations and perceptions regarding services.
- Helps companies prioritize features that fulfill customer expectations.
Match-up Benefits and Features
- Emphasizes alignment between product features and consumer expectations (e.g., speed, comfort).
- Aids in identifying consumer preferences across bike types.
Target Market Segmentation
- Identifies three distinct market segments: Recreational, Mountain, and Speed.
- Companies must focus on a primary target market to effectively develop strategies.
- Involves tailored branding, advertising, and pricing strategy.
Factors Affecting Demand
- Demand influenced by changes in target segments, pricing, advertising, sales force size, and compensation.
- Regular adjustments in brand design and the introduction of new bikes can shift demand.
Demand Curves
- Illustrates the relationship between product price and quantity demanded.
- Essential for understanding consumer buying behavior.
Demand Forecasting
- A strategic process predicting future demand patterns based on multiple factors.
- Critical for planning production and allocating resources effectively.
Pricing and Price Elasticity
- Pricing should reflect market willingness to pay while considering product performance.
- Price elasticity measures consumer sensitivity to price changes; more critical for pricing strategies.
Fixed Capacity vs. Operating Capacity
- Fixed Capacity indicates maximum production output capability.
- Operational capacity reflects actual production capabilities, influenced by resource use and efficiency.
- Overtime can boost production to meet demand surges.
Lean Manufacturing and Just-in-Time
- Focuses on reducing production times and supply chain waste.
- Lean manufacturing enhances efficiency, while JIT emphasizes minimizing inventory and optimizing workflows.
Production Costs and Economies of Scale
- Includes materials, labor, and overhead costs, with materials being the primary cost driver.
- Economies of scale result in reduced production costs as output increases.
Pro Forma Accounting
- Utilizes projected accounting statements to evaluate decision impacts on financial health.
- Serves as a budgeting and forecasting tool to assess cash flow, income, and balance sheets.
Financial Statements
- Consists of balance sheet, income statement, and cash flow statement.
- Essential for monitoring overall business performance and financial status.
Balanced Scorecard
- A comprehensive measure of total organizational performance.
- Provides a key metric for performance evaluation across different companies, available after the first sales quarter.
Studying That Suits You
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Description
Test your knowledge of customer needs and competitive advantages in the bike market with these flashcards. Each card focuses on key terms and concepts that help understand consumer behavior and product features. Perfect for students and enthusiasts alike!
