Question

(a) What would be your first choice for an advertising medium for an entrepreneur owning a rental car agency? Why? (b) List three other possible advertising methods.: How can an entrepreneurial firm benefit from the services of a public relations firm? Explain with examples.

If a small business conducts a break-even analysis properly and finds the break-even volume at a price of $10 to be 10,000 units, should it price its product at $10? Why or why not? If not $10, what should the price be and why?

How does price relate to value in the eyes of a customer? Give examples to illustrate your points.

these are not long essay type please answer all.

Answer 1

a) The first choice for an advertising medium for an enterpreneur owning a rental car agency is -

Social media advertisements where the younger generation spend most of their free time. The target customers for a rental car agency are usually younger generation.

b) Three possible advertising methods include -

1. Social media advertising

2. Mass media communication

3. Print media communication

Public Relations firm offers the much needed attention of public or potential customers and creates a positive impression on the firm in the minds of the public.

c) The price of the product of the small business should be just above 10 $ thus ensuring a small profit for the firm. Once the firm earns loyal customers, it can slowly increase the price considering the products are maintained at high quality.

Pricing a product higher might increase its value in the minds of customers if the brand name has the value and the product is of high quality.