ESB ESB - Entrepreneurship and Small Business Sales Strategies and Revenue Generation Questions and Answers 2

Question 1

What is a 'lead' in the sales process?

Accepted Answer

A potential customer who has expressed some level of interest in a product or service

Answer

A lead is a prospect who has shown interest in what you offer and may potentially become a paying customer after further qualification.

Question 2

What is 'cost-plus pricing'?

Accepted Answer

Adding a standard profit markup percentage to the total cost of producing a product

Answer

Cost-plus pricing calculates total production cost per unit and adds a desired profit margin percentage to arrive at the selling price.

Question 3

What does Customer Lifetime Value (CLV) measure?

Accepted Answer

The total revenue a business expects to generate from a customer over the entire relationship

Answer

CLV helps businesses understand each customer's long-term worth, guiding how much to invest in acquisition, retention, and service.

Question 4

What is the purpose of a 'call to action' (CTA) in sales and marketing?

Accepted Answer

To prompt the prospect or customer to take a specific next step toward purchasing

Answer

A CTA directs customers to take a specific action like 'Buy Now,' 'Get a Free Quote,' or 'Schedule a Demo' to advance them toward a sale.

Question 5

What does 'price elasticity' measure in a business context?

Accepted Answer

How sensitive customer demand is to changes in the price of a product

Answer

Price elasticity measures how much demand changes when price increases or decreases, helping businesses set pricing that maximizes revenue.

ESB - Entrepreneurship and Small Business Certification Practice Test