Intro to Business Quiz 3

SWOT Framework

a framework for helping us evaluate a company’s strategy

Stakeholder Analysis

the process of evaluating a company’s impact on a wide range of constituents

Brand Awareness

how well consumers know and recognize a company’s brand

Brand loyalty

refers to consumers’ preference and repeated purchase behavior for a certain brand

Targeted Advertising

delivers ads to specific people based on their traits, interests, and behavior

Customer Loyalty Program

a program designed by a company to foster repeat business from customers

Comparable store sales growth

measures percentage revenue increase from existing locations that have been open for at least one year

Lifetime value of a customer

the total net profit a business expects to earn from a single customer over their entire relationship

Customer churn rate

measures the percentage of customers who stop using a company’s product over a specific time

Customer churn rate equation

( lost customers / total customers at the start of the period ) x multiplying by 100

Customer acquisition cost

total expense a business incurs to gain a new paying customer

Customer acquisition cost equation

total sales + marketing costs / # of new customers acquired in a specific period

Net profit margin equation

total net profit / total revenue

Global Adaptation

when a company modifies its product and services for various foreign markets to cater to local customer preferences, culture, and laws

Global Standardization

when a company keeps its products quite uniform around the globe to maximize operational efficiency and because they want to sell a consistent brand image around the world

Modes of Entry

ways in which a company can enter a foreign market

Forms of global “distance”

Geographic distance, Linguistic distance, Cultural distance, and Economic distance