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Flashcards in Exam question 1 Deck (30)
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1
Q

Value based approach of pricing

A

An approach in which you set the price primarily on the value the customer receives rather than an actual cost of the product

2
Q

Closed bidding

A

Suppliers are formally invited to offer a bidding. All offers are sealed and will be evaluated on a certain date. The contract is always given to the lowest bidder that meets the requirements

3
Q

Open bidding

A

Informal, allows suppliers to offer a bidding before a certain date, without a special invitation

4
Q

Price elasticity of demand

A

The degree to which demand responds to any change in the price. It’s the percentage change of demand in respond to the percentage change of the price

5
Q

Activity based costing (ABC)

A

A method to measure costs tied to a specific activity and trace those costs to the products, customers and channels that consumed those activities

6
Q

Key account management

A

A key account manager provides specific and high-quality services to a key account. A key account is an important customer who buys in large quantities and dispersed locations

7
Q

Trade fair

A

An event where companies can come and meet potential customers. They can present (new) products and it’s a good place for advertising. Furthermore they can solve problems with existing customers. A good way to reach a large audience and advertise.

8
Q

Supply chain management

A

A technique for linking a manufacturer’s operations with those of all its strategic suppliers and its key intermediaries and customers to enhance efficiency and effectiveness

9
Q

4 goals of Supply Chain Management

A
  • Waste reduction
  • Time compression
  • Flexible response
  • Unit cost reduction
10
Q

BCG Global advantage diamond

A

Model to explain the success of global expansion. There are 4 elements that give growth advantage, resource leveraging advantage & manyness advantage

11
Q

4 elements of diamond model

A
  • Market access - driving sales growth by targeting new markets
  • Resources access - Leveraging valuable resources in RDE to achieve competitive advantage
  • Local adaptation - develop and adapt products to RDEs unique customer needs
  • Network coordination - integrate operations to capitalize on the strength of the companies global network
12
Q

Original equipment manufactureres

A

Commercial enterprises who buy products in the b2b market in order to incorporate them into other products

13
Q

Just in time management

A

All materials and products become available at the very moment they are needed in the production process, aims at reducing and eliminating hidden costs (e.g. buffer stock)

14
Q

total cost of ownership

A

Determines the total costs of acquiring and then using a particular item from a supplier (acquisition, possesion and usage costs)

15
Q

Strategic global alliances

A

Business relationship between 2 or more partners to achieve a common objective, involves commitment of capital, management, technical resources & sharing of risks

16
Q

Macro segmentation

A

Focuses on:

  • geographic
  • customer type
  • customer size
  • product/service use
  • purchasing situation
17
Q

Micro segmentation

A

Focuses on:

  • purchasing criteria
  • purchasing strategy
  • importance of purchase
  • personal characteristics
18
Q

Relationship buyers

A

Focus on service, not price

19
Q

Transactional buyers

A

Price sensitive, considerations made on service

20
Q

Programmed buyer

A

Neither price or service sensitive

21
Q

Bargain hunter

A

Highly sensitive for price/ service changes

22
Q

4 types of buyer

A
  • Programmed
  • Relationship
  • Transactional
  • Bargain hunter
23
Q

Delphi method

A

Quantitative technique for demand forecasting

  1. analyst a forecast opinion from a panel of anonymous experts
  2. Estimates passed around, new estimates are evoked
  3. Continue until a consensus is reached
24
Q

Derived demand

A

Refers to direct link between the demand for industrial products and the demand for consumer products

25
Q

Inelastic demand

A

When a percentage change in price causes a smaller percentage change in demand

26
Q

Joint demand

A

Characteristics of certain products which are used together where a change in demand for one product causes a similar change in demand for the other product

27
Q

Fluctuating demand

A

Opposite of stable demand, demand for a product changes over time

28
Q

Economic value

A

Represents cost savings/ revenue gains that customers realize by purchasing the firm’s product in stead of the second best alternative

29
Q

Commodity value

A

The value that customers assign to product features that looks like those of competitor’s offerings

30
Q

Differentiation value

A

Value associated with product features that are different and unique from competitors