BUS 010 CH.14 – Flashcards
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Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?
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product line
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The combination of product lines offered by a manufacturer is called the firms:
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product mix
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When consumers decide to purchase a particular product, they:
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consider the total collection of benefits that the product offers.
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Successful product differentiation:
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can be based on either real or perceived difference in products.
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A brand that has been given exclusive legal protection, such as the McDonald's golden arches is a:
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trademark
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When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a:
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generic name
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An advertisement for the Xerox Corporation encourages customers to say, "Copy it" rather than "Xerox it". This indicates that Xerox is fearful that its brand name might become an(n):
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generic name
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The ____________ is a theoretical model that describes the sales and profit performance of a product class over time
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product life cycle
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The stages of the product life cycle are:
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introduction, growth, maturity, and decline.
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Sales of cell phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, cellular phones are in what stage of the product life cycle in the U.S.?
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maturity
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Costs incurred regardless of the number of units of a product that are produced or sold are called (think copying machine example in the lecture):
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fixed cost
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The cost of raw materials used to produce a good or service represents the firm's ________ costs.
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variable cost
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Charging high prices to earn large profits during a time when there is little competition represents a________ strategy
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skimming
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A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as (think about the gas stations pricing discussed in the lecture):
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price leadership
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As firms develop their marketing mix, it is important to remember that:
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regardless of the strategy used, prices ultimately reflect the forces of supply and demand.
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What does a break-even point of 100 units mean to a firm?
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If the firm sells 100 units, its total revenues will equal its total costs.
