Chap-10 Marketing, competition & customers

What is the main purpose of marketing?

• To increase production

• To raise prices

• To satisfy customer needs profitably

• To reduce competition

Why is understanding customer needs important?

• To avoid paying taxes

• To improve employee satisfaction

• To ensure the product meets market demand

• To increase raw material costs

Which of the following is NOT a customer need?

• Quality

• Price

• Government regulations

• Convenience

Which of these is a psychological need a customer may seek from a product?

• Low price

• Safety features

• Social status

• Durability

What is a market?

• A. A physical place where goods are stored

• B. The group of people who produce goods

• C. All the consumers and businesses involved in buying and selling a product

• D. A type of pricing strategy

Which of the following could cause a market to grow?

• Decreasing population

• Higher unemployment

• New product innovations

• Increased taxes

Which of the following is a sign of a changing market?

• Stable customer needs

• Same number of competitors

• Shift in consumer preferences

What is likely to happen in a growing market?

• Less opportunity for profit

• Reduced competition

• More customer demand

• Falling sales revenue

What is competition in business?

• Cooperation between businesses

• A pricing strategy

• Rivalry among businesses to attract customers

• A form of legal contract

Which of the following is a benefit of competition to customers?

• Higher prices

• Less choice

• Better quality products

• Slower innovation