30 Questions
What is essential for any organization to avoid wasting valuable resources?
Collecting data from the right population
What is one key factor to consider when interviewing to build a comprehensive understanding?
Asking questions in simple language
What is recommended when listing major competitors?
Include strengths, weaknesses, financial situations, and reputations
What type of data will not be part of the quantitative data collected during interviews?
Qualitative data like experiences and emotions
Which step is effective in finding solutions after completing all the previous steps?
Conducting a thorough analysis
What should be avoided when formulating questions during the preparation step?
Using ambiguous or confusing terms
What are the three main components of product costs?
Direct materials, direct labor, manufacturing overhead
Which of the following is NOT considered a direct material for product costing?
Glue
What do overhead costs include in product costing?
Cost of machinery, cost of operating machinery, and indirect costs
Which type of labor cost includes wages of security guards and drivers in product costing?
Indirect labor
What are examples of indirect materials used in production processes?
Oil and tape
Which of the following best describes the purpose of direct materials in product costing?
Raw materials used directly in the production process
What is one example of a unit of measurement for public transport services?
Passenger-Kilometer
In the formula for calculating total service cost, what does 'Total Fixed Cost' represent?
Cost that remains constant regardless of service provided
Which formula is used to calculate the total service unit by multiplying all the variables?
Total Service Unit = (Variables 1) x (Variable 2) x (Variable 3) x (Variable 4)
What is an example of a unit of measurement for electricity supply services?
Kilowatt-hour
When calculating the service cost, what does 'Total Variable Cost' relate to?
'Cost that changes with the level of service provided'
Which step is involved in calculating the service cost?
Calculate the total fixed cost related to the service
What pricing strategy involves setting the initial price of a product low to swiftly enter a competitive market and gain a loyal customer base?
Penetration Pricing
In which pricing strategy is the price of a product or service manipulated to influence consumer perception and behavior by using specific price points?
Psychological Pricing
What technique does Netflix use in pricing to initially attract customers with a low price and then raise subscription fees later?
Penetration Pricing
Which pricing strategy involves offering multiple products or services together at a discounted price to create the illusion of a good deal?
Bundle Pricing
How do Beauty Salons and Barber Shops use pricing to make consumers perceive their services as cheaper?
Utilizing Psychological Pricing methods
Which pricing strategy involves adjusting the price of a product or service based on changing market conditions?
Dynamic Pricing
What is the primary purpose of differentiating products from competitors?
To increase customer loyalty
How does understanding the target market help businesses?
By improving chances of success
What is market targeting in the context of business?
Understanding buyer's needs and characteristics
Why is dividing customers based on common characteristics beneficial for businesses?
To make better decisions and provide individualized support
What do prospect customers represent in the market targeting process?
A market segment to serve
Why is customizing products or services important for businesses targeting a specific market?
To increase customer loyalty and success
Study Notes
Product Costing
- Product cost is the cost associated with making a product to be sold.
- Product costs consist of three main components: • Direct material: raw materials or components used directly in the production process of the final product (e.g., wood, metal, plastic, fabric, and chemicals). • Direct labor: the cost of labor involved in producing a product, including wages, salaries, and benefits of employees. • Manufacturing overhead: expenses related to the production of a product, including indirect materials, indirect labor, and other overheads.
Manufacturing Overhead
- Indirect materials: supplies and materials used in the production process but not a visible part of the final product (e.g., glue, oil, tape, and cleaning supplies).
- Indirect labor: work performed by individuals not directly engaged in producing goods (e.g., security guards, drivers, and legal advisers).
- Other Overheads: profiles retaining distinctive attributes of the model customer, providing insight into potential recurring behaviors.
Service Costing
- Service cost is the cost associated with providing a service.
- The formula for calculating total service cost: Total Service Cost = Total Fixed Cost + Total Semi-Variable Cost + Total Variable Cost.
- The formula for calculating total service unit: Total Service Unit = (Variables 1) x (Variable 2) x (Variable 3) x (Variable 4).
- The formula for calculating cost per service unit: Service Cost per Unit = Total Costs for the Period / Total Service Unit.
Pricing Strategies
- Penetration Pricing: intentionally setting a low initial price to swiftly enter a competitive market, gain a loyal customer base, and generate rapid sales, with the plan of increasing the price later.
- Psychological Pricing: using specific price points to influence consumer perception and behavior (e.g., "P99" or "P19.99" instead of rounded numbers).
- Bundle Pricing: offering multiple products or services together at a discounted price to create the illusion of a good deal and increase sales.
- Dynamic Pricing: adjusting the price of a product or service in response to changing market conditions.
Target Market
- A target market is a specific group of consumers or organizations a business wants to sell to, based on demographics, psychographics, behaviors, and needs.
- Market targeting is essential in the market identification process to determine buyers' everyday needs and characteristics.
Learn about the process of collecting data from the right population to analyze customer behavior, including preparing questions, conducting research, and structuring interviews effectively. This quiz is based on a guide for understanding potential recurring behaviors of model customers.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
