10ECBUS Competitive Advantage

What is the main advantage of a business obtaining a competitive advantage?

• Increased expenses and lower sales

• Higher taxes and reduced revenue

• Ability to outperform other businesses in the market

• Inability to satisfy consumer needs

Which of the following is not a method for a business to reduce production costs?

• Increasing advertising and marketing costs

• Sourcing cheaper materials from suppliers

• Investing in better technology

• Outsourcing operations

What is the difference between quality and perceived quality?

• Quality is about the product's features, while perceived quality is about its performance

• Quality is about the product's durability, while perceived quality is about its aesthetics

• Quality is about the product's serviceability, while perceived quality is about a judgement of the value

• Quality is about the product's reliability, while perceived quality is about its conformance

Why is a brand so important when it comes to selling luxury goods?

• It helps in reducing production costs

• It helps the consumer to quickly identify the product's features

• It allows the business to outperform others in the market

• It sets the product apart from similar products and creates an identity

What is the main purpose of advertising for a business?

• To increase taxes and expenses

• To reduce production costs

• To draw the public's attention to the product

• To outsource operations to other countries

What is the benefit of larger businesses in terms of production costs?

• They have lower costs due to increased labour costs

• They have lower costs due to economies of scale

• They have higher costs due to increased advertising and marketing

• They have higher costs due to economies of scale

What is the main advantage of being responsive to consumer needs?

• It leads to higher taxes and expenses

• It allows the business to bring products to market 'on time'

• It reduces the need for customer service

• It increases production costs

What is the main purpose of ethics in the production of goods and services?

• To harm humans, animals, and the environment

• To ensure the product is of high quality

• To provide a guide to what is right and wrong

• To increase production costs

What is the main advantage of a business creating a brand for its products?

• It helps the consumer to quickly identify who made the product

• It allows the business to outsource operations

• It increases production costs

• It reduces the need for customer service

What is the main purpose of customer service for a business?

• To outsource operations to other countries

• To reduce production costs

• To treat the customer well and provide after-sales service

• To increase taxes and expenses