INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.It gives a competitive edge to the product/service by also building on perception of product/service quality
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2.It hardly matters as products/services can be priced in any way
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3. Prices should be kept in a way to yield maximum profit to a seller/manufacturer
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4.None of the above
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Detailed explanation-1: -Pricing should be in line with the value of the benefits that your business provides for its customers, while also bearing in mind the prices your competitors charge. To maximise your profitability, find out: what benefits your customers gain from using your product or service.
Detailed explanation-2: -Historically speaking, quality has been top of mind for consumers and was more important than price. In 2021, we conducted consumer research to temperature check market behavior, and consumers ranked the quality/value of a product (51%) higher than the price (30%).
Detailed explanation-3: -Costs – a business cannot ignore the cost of production or buying a product when it comes to setting a selling price. In the long-term, a business will fail if it sells for less than cost, or if its gross profit margin is too low to cover the fixed costs of the business.
Detailed explanation-4: -Have you covered your production and service delivery costs? Are your prices in line with your longer term business goals? What is the customer willing to pay? What kind of customer do I want to target? How should I react to my competitor’s prices? More items •12-Jul-2016