UWM Intro to Entrepreneurship Final exam

Nonexempt

A federal government descriptor of employees under the Fair Labor Standards Act who get an hourly wage and time-and-a-half for overtime

Exempt

A federal government descriptor of employees who are exempt from the Fair Labor Standards Act and are generally paid salaries.

Meritocracy

A management philosophy of selecting and promoting people based solely on their being the most capable person for the job

Born international

A new firm that opens a Web site immediately, thus being exposed to customers from around the world.

Heterogeneity

A quality of a service in which each time it is provided it will be slightly different from the previous time.

Inseparability

A quality of a service in which the service being done cannot be disconnected from the provider of the service.

Off-peak pricing

Charging lower prices at certain times to encourage customers to come during slack periods

Open-book policy

Concept that key employees should be able to see and understand a firm's financials

Ethnographic research

Data gathered by simple observation—seeing what consumers do, rather than asking them

Elasticity

From economics, the idea that the market's demand for a product or service is sensitive to changes in its price.

Dichotomous question

Question that has only two possible choices; for example, "Have you shopped here before?"

Scalar question

Question that is answered by some sort of scale; for example, "On a scale of 1 to 5, how do you like this book?"

Psychological contract

Refers to employees' beliefs about the promises between the employee and the firm

Skimming

Setting a price at the highest level the market will bear, usually because there is no competition at the time.

Partitioned pricing

Setting the price for a base item and then charging extra for each additional component

Captive pricing

Setting the price for an item relatively low and then charging much higher prices for the expendables it uses.

Value proposition

Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition.

Law of supply and demand

The economic theory that describes how the demand for products (or services) and the supply of them affect each other.

4 Ps of Marketing

The four major components of a marketing effort: product, price, promotion, and placement

Price lining

The practice of setting (usually) three price points: good quality, better quality, and best quality.

Guerilla marketing

The use of creative and relatively inexpensive ways to reach your customer

Building

has the advantage of having the perfect layout in the perfect location and the street appeal of a new building

Leasing

is an option with a considerably lower initial cash outlay

elastic product

product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased

Inelastic product

product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased

Perishability

service exhibits perishability in that if it is not used when offered, it cannot be saved for later use.

Buying

something already in existence shortens the time and may be somewhat cheaper