Ppo

Question 1

What are costs in a business context?

Answer 1

Costs are everything a company spends to operate and conduct business.

Question 2

How must a company cover its costs?

Answer 2

A company must cover all costs in the long term with the prices of its products.

Question 3

What are the types of pricing policies?

Answer 3

1. Cost-oriented pricing policy: based on actual costs.
2. Competition-oriented pricing policy: smaller companies base their pricing on competitors’ prices.
3. Demand-oriented pricing policy: if demand is high, the provider can increase prices, and vice versa.
4. Customer preference pricing policy: lower prices, discounts, and other incentives are used to attract customers to buy a new product, hoping they will prefer it later even at higher prices.

Question 4

What is price differentiation?

Answer 4

Price differentiation refers to companies offering similar products at different prices to exploit varying purchasing power of consumers.

Question 5

What types of price differentiation are there?

Answer 5

1. Regional (spatial) price differentiation: domestic market vs. export.
2. Temporal price differentiation: lower pre-season prices vs. higher seasonal prices.
3. Consumer-based price differentiation: different prices for households and businesses.
4. Calculative adjustment: distributing all costs based on products by changing the trade margin for individual products.

Question 6

What is the policy of sales conditions?

Answer 6

The policy of sales conditions refers to the terms and conditions under which sales are made.