Lesson 4

Question 1

It refers to any obstacle or resistance within a market that inhibits the smooth operation of buying and selling goods or services

Answer 1

Market Friction

Question 2

It represents the various challenges and obstacles that can impede the successful introduction and adoption of a new product in the market

Answer 2

Market Friction

Question 3

is any point that slows or stops the movement of goods through the supply chain process.

Answer 3

Supply Chain Bottle neck

Question 4

can happen for various
reasons, such as labor shortages,
component shortages, infrastructure
problems.

Answer 4

Bottlenecks

Question 5

If you’re having a hard time
getting a certain material due
to a shortage, you might not be
able to meet customer
demand. Unmet demand
equals lost revenue

Answer 5

Bottlenecks problems

Question 6

Challenges cause by supply chain bottlenecks

Answer 6

Increased Costs
Customer Dissatisfaction
Delivery Delays
Lost Revenue

Question 7

is the ability to see and track your inventory: how much you have, what products you have, and where it all is

Answer 7

Inventory Visibility

Question 8

Supplier might not tell company
about supply constraints, raw
material shortages, or delays on
certain products

Answer 8

Communication

Question 9

How can one improve communication?

Answer 9

by setting clear expectations,
measuring performance, and
occasional check-in meetings

Question 10

Having insufficient labor to fulfill
all your orders & Running out of warehouse space to hold inventory

Answer 10

Production Capacity

Question 11

Not having the right technology
to aid material procurement and
order fulfillment

Answer 11

Production Capacity

Question 12

How to increase Production Capacity?

Answer 12

• Upgrade systems, management software, and equipment
• Increase staff
• Assess your order management system and fix your pain points

Question 13

Causes of Transportation Infrastructure

Answer 13

• Delayed shipping from your
  supplier.
• Delayed shipping to your
  customer via carriers.
• Slow last-mile delivery due to a
  lack of proper technology or a
  shortage of truck drivers

Question 14

Prevention of transportation Infrastructure

Answer 14

Partnering with a third-party
logistics provider who can handle
all your order packing and
shipping.
* Using the carrier closest to your
distribution center will also help
you cut down on transit times and
costs.
* handle last-mile delivery on your
own.

Question 15

What’s the contingency plan to prevent supply chain bottleneck

Answer 15

*Tiered approach when choosing suppliers.
* Have backup suppliers for emergencies.
* Increase your safety stock to avoid supply chain shortages,
especially for products with long lead times

Question 16

____________ of a product varies with the relative level of importance consumers place on price compared to other purchasing criteria.

Answer 16

Price sensitivity

Question 17

Factors that affect price sensitivity

Answer 17

1. Demand
2. Competition
3. Location and Income
4. Exclusivity
5. Quality

Question 18

The higher the
________ for
something, the
higher price
customers may be
willing to pay.

Answer 18

Demand

Question 19

When companies in
similar industries
offer similar products
or services to the
same customer base.

Answer 19

Competition

Question 20

Companies might
consider variable
pricing to provide
appropriate pricing
to customers in
different locations

Answer 20

Location and income

Question 21

Customers may be more likely
to pay higher prices based on
the limited availability of certain
products

Answer 21

Exclusivity

Question 22

The craftsmanship of a
product’s assembly or the
level of experience a service
provider has an effect on
the prices

Answer 22

Quality

Question 23

Psychological pricing tactics

Answer 23

Price anchoring
Charm pricing
Odd-even Pricing
Decoy pricing
Center stage

Question 24

recognizes that consumers tend to depend too heavily on an initial piece of information when decision-making

Answer 24

Price anchoring

Question 25

Best for companies with a tiered pricing model that offers various versions and associated features of the core product, at different prices

Answer 25

Price anchoring

Question 26

refers to the use of prices ending in the number nine because of the “left-digit bias

Answer 26

Charm Pricing

Question 27

Best for companies with non-luxury products that want to convey a “deal.”

Answer 27

Charm Pricing

Question 28

This tactic leverages the belief that, psychologically, buyers are more sensitive to certain ending digits.

Answer 28

Odd-even pricing

Question 29

This pricing works best for luxury items

Answer 29

Even pricing

Question 30

This pricing tends to work best for most other products.

Answer 30

Odd Pricing

Question 31

based on the “decoy effect,” by which individuals tend to have a specific change in preference between two options when also presented with a third option that is inferior in every way except one

Answer 31

Decoy pricing

Question 32

Best for Companies that have a preferred option(s) to which they want to direct customers

Answer 32

Decoy pricing

Question 33

Pricing which dictates that, out of a range of products presented side-by-side, we tend to be drawn to the one situated in the middle

Answer 33

Center stage pricing

Question 34

the art of setting your products or services at a particular price point that aligns with the perceived value by your customers

Answer 34

Price positioning

Question 35

strategy involves pricing your products or services at a premium, targeting customers who place value on quality or exclusivity

Answer 35

Premium pricing

Question 36

is often used by luxury products, high-end services, and premium brands.

Answer 36

Premium pricing

Question 37

This strategy involves pricing your products or services at a lower price point to attract customers and gain a foothold in the market share.

Answer 37

Penetration pricing

Question 38

can be an effective way to generate sales quickly, attract price-sensitive customers, and create brand awareness.

Answer 38

Penetration pricing

Question 39

This strategy involves pricing your products or services at the lowest possible price to attract cost-sensitive customers.

Answer 39

Economy pricing

Question 40

is often used by discount stores, budget airlines, and other low-cost providers.

Answer 40

Economy Pricing

Question 41

This strategy involves pricing your products or services at a high introductory price point before gradually reducing the price over time, targeting early adopters or customers who are willing to pay a premium for new products or services

Answer 41

Skimming Pricing

Question 42

This strategy involves pricing your products or services based on the prices of your competitors.

Answer 42

Competitive pricing

Question 43

While this strategy can help businesses remain competitive, it may require constant price monitoring to maintain market position and may result in lower profit margins

Answer 43

Competitive pricing

Question 44

Analyzes the entire competitive environment to give a comprehensive overview of the industry.

Answer 44

Competitive Landscape analysis

Question 45

Competitive Landscape analysis is all bout identifying what?

Answer 45

* Competitors * Competitors position * The strengths and weaknesses of competing products * Becoming familiar with the trends and developments in the industry

Question 46

The strengths and weaknesses of one of your competitors, the threats they pose, and the opportunities for growth afforded by the gaps between their strengths and weaknesses and your own.

Answer 46

SWOT ANALYSIS

Question 47

Understanding the current political and economic climate impacting the industry right now, getting the sense of how the industry might begin to change over time

Answer 47

PESTLE ANALYSIS

Question 48

Techniques for Analyzing Industries and Competitors, that five competitive forces interoperate to “determine the attractiveness of an industry”, going into detail as to “how these forces change over time and can be influenced through strategy”.

Answer 48

Porter's Five Forces

Question 49

A portfolio planning method that evaluates a company’s Strategic Business Units in terms of its market growth rate and relative market share

Answer 49

Growth Share Matrix (BCG MATRIX)

Question 50

represents industry attractiveness, while relative market share stands for competitive advantage.

Answer 50

Market Growth

Question 51

They are the leaders in the business It leads to large amount of cash consumption & cash generation

Answer 51

Stars (High growth, High Market share)

Question 52

- Foundation of the company & often the stars of yesterday - Located in an industry that is mature not growing or declining

Answer 52

Cash Cows (Low growth, High Market Share)

Question 53

- The start of most business - Has potential to become star & evenly cash cow but can also become dog

Answer 53

Question Marks (High Growth, Low Market Share)

Question 54

- are the cash traps - Business is situated at a declining stage

Answer 54

Dogs (Low Growth, Low Market Share)