Occurs when one party possesses more information (material knowledge) than another in the context of an economic transaction. This creates imbalance in power and can sometimes put transactions in jeopardy.
The average selling price at which an offering is sold across the market.
The obstacles within an existing market that prevent newcomers from entering the market. E.g., high startup costs, strong brand identity of an existing market player.
The benefit derived from using a feature of a product or service. For example, "child-lock" is a feature of medicine bottle caps. The function of the "child-lock" is that it is designed to lock the bottle cap and keep it from opening unless rotated in a particular manner. The benefit of the "child-lock" is risk prevention; it keeps children from accidentally consuming hazardous medication.
A value premium that a company is able to capture from its offering as a result of its name recognitions in comparison to that of a generic equivalent. Brand equity has four components: brand loyalty, brand awareness, brand associations, and perceived quality.
When a firm links two or more distinct offers and sells then as a package at a single, bundled price.
Business objectives are measurable steps that a business takes to achieve its goals.
A business model where economic transaction takes place between business entities as opposed to between a business and a customer.
A business model where economic transaction takes place between a business and a customer.
A detailed description of customer segments. It is used to identify target customer segments and may include demographics, patterns of behaviours, motivations, etcetera.
The steps a customer takes in order to make a purchase decision. The customer buying process may include: a recognition of a problem or need, information search, evaluation of alternatives, purchase decision, purchase and post-purchase evaluation.
A business strategy that causes a product or service to lose market share, revenue or margin due to the introduction of another product or service by the same company.
The costs incurred by a business to purchase, replace or improve long-term fixed assets. Some examples of capital expenditure include purchasing buildings, upgrading machinery, and equipment.
The net cash or cash equivalents that flow in and out through a business. Cash flow metrics are indicative of a company's liquidity.
The percentage of category that is captured by a market participant within a given market.
The size (either units or revenue) of a given market category.
Churn rate is the percentage of customers who have stopped subscribing to your product or service.
A business entity producing a similar product or service and is competing within the same market to increase revenue, profit or market share.
The distinguishing attributes of a product or service, or unique market or business circumstances that is advantageous to a company and puts them ahead of the competition.