[KN]Inorder to maintain customer loyalty
[APP]For example a restraunt may charge lower prices inorder to maintain customer base.
[AN]Hence this can lead towards an increase in consumer demand for that businesses products hence leading towards a rise in brand image and thus a larger consumer base.
11 Explain why a business might not aim to maximise its profits in the short term.
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Fatima ibtehaj
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Aarib Saad
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Re: 11 Explain why a business might not aim to maximise its profits in the short term.
(KN)The business might instead be focusing on developing brand image.
(APP)For instance, a car manufacturer might charge lower prices for it's cars so that more people can afford them for everyday use.
(AN)This will thus allow the business to be able to have larger consumer base, creating brand recognition, boosting competitivity of the business, allowing business to raise prices in the long term for higher profits.
(APP)For instance, a car manufacturer might charge lower prices for it's cars so that more people can afford them for everyday use.
(AN)This will thus allow the business to be able to have larger consumer base, creating brand recognition, boosting competitivity of the business, allowing business to raise prices in the long term for higher profits.
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Abdullah Mohsin
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Re: 11 Explain why a business might not aim to maximise its profits in the short term.
[KN] The business may be focused on other objectives, such as improving brand image.
[APP] For example, a restaurant might focus on improving the quality of the food it serves rather than cost-cutting to increase profits in the short run, which would lead to a fall in customer satisfaction and brand image.
[AN] The business would aim to improve its brand image by serving high-quality food, by improving the ambiance of the restaurant, and improving customer satisfaction, which would help build brand reputation, allowing the business to gradually increase prices, increasing profits in the long run.
[APP] For example, a restaurant might focus on improving the quality of the food it serves rather than cost-cutting to increase profits in the short run, which would lead to a fall in customer satisfaction and brand image.
[AN] The business would aim to improve its brand image by serving high-quality food, by improving the ambiance of the restaurant, and improving customer satisfaction, which would help build brand reputation, allowing the business to gradually increase prices, increasing profits in the long run.