Product differentiation and Added Value Flashcards Preview

Edexcel Business A level Unit 1 > Product differentiation and Added Value > Flashcards

Flashcards in Product differentiation and Added Value Deck (4)
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1

What is added value:

-Added value is the extra value added by businesses to their products, which allow them to raise the price. They can sometimes be tangible and intangible

2

What does tangible and intangible mean:

-Tangible is something you can feel, you can touch, something physical, i.e. the parts of a shoe.
-Intangible is the opposite of tangible, where cannot touch the thing, i.e. A electronic banking application.

3

How can a business add value:

-By showcasing the performance of their product
-By showcasing the quality of the product and the materials used to make it

4

Other ways businesses can add value:

-Packaging
-Branding
-Advertising
-Speed of service