You Are Contemplating Starting a Services Business in the Next

question 18

Multiple Choice

You are contemplating starting a services business in the next few months. You are inclined to start a services business because you know that the U.S. economy is rapidly becoming a services-based economy. You have the expertise to focus on either business services or consumer services. Which of the following statements is true about business and consumer services?​

• A)Demand for consumer services has grown more rapidly than for business services.
• B)Demand for consumer services and business services are growing by approximately the same rate.
• C)Demand for consumer services is expected to surpass the demand for business services over the next 10 years.
• D)Demand for both consumer services and business services are expected to decline over the next 10 years.
• E)Demand for business services has grown more rapidly than for consumer services.

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Definitions:

Profit-Oriented

A business approach or strategy primarily focused on generating financial gain and maximizing profit margins.

Target Pricing

A pricing strategy where the selling price is determined based on the estimated price a consumer is willing to pay, rather than on the cost of production or the market average.

Prestige Pricing

A pricing strategy where goods are priced higher than normal to invoke perceptions of quality and exclusivity, aimed at attracting status-conscious consumers.

Cost-Plus Pricing

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price.