Personal Finance Assignment 1

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Assignment 1: Economics (20 points) In Section 1, you learned about economic principles. Now, you'll apply what you learned. 1. Choose a well-known company that you know of, and answer the following questions about it: a. Is this mainly a product-based or service-based business? (1.0 points) Pizza Hut is a product-based business. b. What type of good or service is this company best known for? (1.0 points) The type of good that Pizza Hut is known for is their pizza. c. What makes the company different from its competitors? (1-3 sentences. 3.0 points) Overall Pizza Hut is a total package. It is not the price or quality or the variety in items that makes it different from other competitors. It’s the total value that they deliver to their customers. d. Why do you think this company became successful? Describe at least one reason. (1-5 sentences. 2.0 points) It has approximately 34,000 restaurants, take-out delivery and fast kiosks in 100+ countries. 2. Choose a different well-known company that you know of, and describe its direct and indirect competitors. Describe at least 2 direct competitors and 2 indirect competitors. (1-5 sentences. 4.0 points) 3. Describe at least 3 non-price competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (1-6 sentences. 3.0 points) Skimming=higher price- lower customer base apple uses skimming to make customers feel like they’re part of the apple family. Starbucks raised their prices on their high-end drinks when they lowered the prices on their low-end prices to compete with McDonalds, and Dunkin’ Donuts coffee prices. 4. Describe a real or made up but possible example of a product that went through a time of scarcity. What was likely to happen to the price of the

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