MRKT 3310 – Flashcard

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good, service, idea
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a product may be a __ , __, or ___
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attributes
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a product’s ___ satisfy consumer’s needs
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good, service
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a __ is defined by having tangible, while a ___ has intangible attributes
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nondurable, durable
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a product that is consumed in 1 or a few uses is known as a __ good, while one that lasts over many uses is called a __ good
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consumer and business products
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when products are classified broadly based on the type of user, what are the 2 categories?
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convenience product, shopping product, speciality product, unsought product
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what are the 4 types of consumer products?
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convenience
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items that the consumer purchases frequently and with a minimum of effort are __ products
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shopping
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items for which the consumer compares several alternatives on criteria like price, quality, or style are ___ products
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specialty
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__ products: items that the consumer makes a special effort to search out and buy
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convenience
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laundry detergent would be considered to be a ___ product
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shopping
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an airline ticket would be considered to be a ___ product
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business
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___ products are characterized by derived demand
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components, support products
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for business products, ___ become part of a final product while __ are used to assist in producing other goods and services
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support
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buildings, tools, and supplies are ___ products for orgs
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product item
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___: a specific product that has an unique brand, size, or price
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product line
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___: a group of product or service items that are closely related because they satisfy a class of needs, are used together, sold to the same group, distributed through the same outlets, or fall within a given price range
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lines
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nike’s product ___ include shoes and clothing
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product mix
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___ consists of all of the product lines offered by an org
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newness compared with existing products, newness in legal terms, newness from the org’s perspective, newness from consumer’s perspective
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what are 4 important points of view when considering a product’s “newness”?
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feature bloat
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products may be considered new when they differ from existing products, but this encourages the proliferation of extra features which is known as __
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dynamically continuous
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__ innovation (1 of 3 types of new product innovation): disrupts consumer’s normal routine but doesn’t require totally new learning
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continuous
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__ innovation (1 of 3 types of new product innovation): requires no new learning by consumers
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discontinuous
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__ innovation (1 of 3 types of new product innovation): requires new learning and consumption patterns by consumers
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continuous
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___ innovation: when a toothpaste is improved by adding a whitening ingredient
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discontinuous
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what must the consumer learn about when a new product is a ___ innovation: -previously unencountered benefits -proper use of the product
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6 months
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the federal trade commission advises that the term “new” be limited to use with a product up to __ after it enters regular distribution
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B, A, C
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considering the concept of product newness from an organizational point of view, match the following by risk and level of innovation: A) product line extension B) radical invention C) significant technology jump __ revolutionary new products __ threat of cannibalization __ moderate risk
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protocol
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a ___ is a predevelopment statement that IDs a target market, customer needs, and what the product will be or do
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3
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less than __% of new consumer package goods (CPG) exceed first-year sales for $50 million (the benchmark for a successful launch)
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new-product failures
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insignificant points of difference, incomplete protocols, and bad timing are among the reasons for ___
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new-product strategy development, idea generation, screening and evaluation, business analysis, development, market testing, commercialization
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list the 7 steps of the new-product process
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new-product strategy development
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in the __ stage of the new-product process, an org defines the role of a new product in terms of the firm’s overall objectives
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idea generation
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__ is the stage of the new-product process that results in a pool of concepts as candidates for new products
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open
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apple’s use of the professional R&D lab IDEO to create the first computer mouse is an example of __ innovation
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employees
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general mills got the idea for nature valley granola bars when a mngr saw coworkers bringing granola to work in baggies, illustrating the importance of using __ in the new-product process
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customers and suppliers
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bc their ideas of what they want may be limited or skewed, __ should be used in the new-development process but with a focus on what the new product will actually do for them
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industrial design
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___: the applied art that improves the aesthetics and usefulness of mass-produced products for users
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research and development (R&D)
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orgs may rely on new products coming from its own labs, often known as ___ labs
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assessing the strengths and weaknesses of competitor’s products
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what is the most appropriate use of competitors in the development of new-product ideas?
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screening and evaluation
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the new-product process stage of __ involves determining which ideas should be eliminated from further effort
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screening and evaluation
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in the __ stage of the new-product process, a firm’s employees evaluate the technical feasibility of a proposed idea
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concept testing
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external evaluations in the screening and evaluation stage of new-product process often involved ___, consisting of preliminary testing of a new-product idea rather than an actual product
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concept
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in __ testing, new-product idea rather than an actual product is presented to potential consumers, often in written form, to obtain their reactions
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concept tests
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__ in the screening and evaluation stage of the new-product process are most useful when used for minor modifications of existing products
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concept testing
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___ helps an org determine early in the new-product process how the customer may perceive the product, as well as who would use it and how, before additional investment is made
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business analysis
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the new-product process stage of __ involves: -making financial projections for a new product -specifying the marketing strategy needed to bring a new product to market
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prototype
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__: a full scale operating model of a new product
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business analysis
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during the __ stage of the new-product process, orgs should consider: -whether a new product will require new machinery to produce -has potential to cannibalize existing products -if product will require new patents
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business analysis
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due to the nature of services, the __ stage of the new-product process should include consideration of capacity mngt to influence consumer demand cycles
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development
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for services, a complete analysis of the “service encounter” may be required to develop customer service delivery expectations in the __ stage of the new-product process
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development
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safety tests, even for usage that is not as intended for a new product, are important to conduct in the __ stage of the new-product process
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development
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the __ stage of the new-product process involves: -ensuring the product meets the standards established by the protocol -manufacturing the product
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market testing
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the __ stage of the new-product process involves: -exposing actual products to prospective consumers -using realistic purchase conditions to see if consumers will buy
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market testing
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2 ways that ___ is used: -to try different ways of marketing a new product -to determine whether consumer will actually buy a new product
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advertising, potential sales volume, pricing
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during test marketing, what are 3 things that may be tested for a new product?
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standard test marketing
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when subway introduced a new sub in florida before launching it nationwide, it was engaging in __
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test market
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the following are desirable characteristics when choosing a __ for a new product: -city pop that is demographically representative of target market -cable system that is able to deliver different ads to different homes
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simulated test markets
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reasons some companies use ___ rather than test markets: -market tests are time consuming -market tests may alert competitors to a firm’s plans -market tests are expensive
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simulated test markets
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in ___, participants are questioned abt a new product, shown ads about it, and finally given $ to make a decision abt whether or not to buy it
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lower cost products (not services)
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for what type of product is a test market more feasible?
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commercialization
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the new-product process stage of ___ involves launching full-scale production for a new product
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regional rollouts
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primary purpose of using ___ in the commercialization stage of the new-product process is to gradually build up production levels and marketing activities
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commercialization
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burger king’s new fries failed during __ bc they proved too complicated to get right day after day in all their restaurants (except under ideal conditions)
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slotting fees, failure fees
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commercialization of grocery products can be very expensive for manufacturers bc of what 2 things?
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time to market
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parallel development and fast prototyping are helpful in improving ___, a critical factor in the success of some new products
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product life cycle
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___: the different stages a product goes through during its existence
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1 intro, 2 growth, 3 maturity, 4 decline
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list the 4 stages of the product life cycle
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introduction
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the ___ stage of the product life cycle for a new product occurs when it is introduced to its intended target market
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introduction
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the ___ stage of the product life cycle is characterized by initial losses to the firm due to its high start up costs and low levels of sales revenue
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introduction
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in the ___ stage of the product life cycle, advertising and promotional spending is used to stimulate primary demand and build awareness
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gain awareness
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__ is a marketing objective when a product is in the intro stage of the product life cycle
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primary
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promotional expenditures in the intro stage are often made to stimulate __ demand
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skimming, penetration
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during the intro stage, pricing a product high is known as ___, and pricing it low is called ___
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growth
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the ___ stage of the product life cycle is characterized by a rapid increase in sales
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sales, competition
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the key characteristics of the growth stage of the product life cycle include rising __ and increasing ___
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repeat purchasers
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during the growth stage, part of the growth in sales is attributed to __, people who tried the product, were satisfied, and bought again
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maturity
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the ___ stage of the product life cycle is characterized by a slowing of total industry sales or product class revenue
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maturity
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marketing attention in the ___ stage of the product life cycle is often directed at holding market share though: 1 finding new buyers 2 further product differention
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maturity
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soft drinks and running shoes are at the ___ stage of the product life cycle
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decline
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when a product goes into the ___ stage of the product life cycle, the company may eventually remove it from the market
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decline
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during the ___ stage of the product life cycle, a company often minimizes promotion
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harvesting, deletion
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a company will resort to __ or __ when a product in the decline stage tends to consume a disproportionate share of resources relative to their future worth
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product deletion
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___: dropping a product from the company’s product line
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harvesting
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___ is when a company increases its profit from declining product by simply reducing its marketing costs
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harvesting
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when coke continues to make tab for fans but doesnt promote the drink, it is known as __
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1 their length, 2 shape of their sales curves, 3 how they vary with different levels of products, 4 the rate at which consumers adopt products
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what are the 4 aspects of product life cycles?
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shortening it
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mass communication and technological change can affect the product life cycle by ___
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fad
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a ___ product’s life cycle curve has a different shape than most products; it typically has rapid sales at intro and a rapid decline
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high-learning
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a long intro stage in the product life cycle is a characteristic of a ___ product
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low-learning
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a __ product life cycle curve is shaped like an inversed U-shape
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form
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product ___ pertains to variations within the product class, where each may have its own product life cycle curve
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form
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cassette tapes, CDs, and digital music are examples of product __
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adopt
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the diffusion of innovation refers to the rate at which consumers ___ a given product or service
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diffusion of innovation
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___ is the way a product spreads through the population
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warranties, guarantees, extensive usage instructions, demos, free samples
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what 5 things are effectively used by firms to stimulate initial trial of new products?
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innovators (2.5%), early adopters (13.5), early majority (34), late majority (34), laggards (16)
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list the 5 categories of product adopters (in order) based on when they adopt a new product
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resisted
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a new product that isn’t compatible with existing habits and provides no incentive to change is likely to be ___ by consumers
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early adopters
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which group of consumers is crucial to the success of new products bc of its social influence over later adopters?
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innovators
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__ are buyers of a product or service who are the first ones to adopt it
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early adopters
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__ are leaders in social settings
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product modification
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___ consists of altering the product’s quality, performance, or appearance
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market modification
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with ___ strategies, a company tries to find new customers, increase a product’s use among existing customers, or create new use situations
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increasing product use
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an example of ___ as a market modification strategy in the cereal category would be advertising the use of cereal as a late night snack
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marketing mix
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a firm can reposition its product by changing one or more of the __ elements
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reposition
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reasons a company may wish to __ its product: -react to a competitors position -change value offered -catch a rising trend
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trading up
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example of a ___ repositioning strategy is a tire manufacturer offering more value by adding “run-flat” tech
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trading down
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downsizing the content of a product’s package is an example of a ___ strategy for repositioning
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trademarks
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brands are assets that can legally be protected through __
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branding
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__ provides a way for a firm to differentiate its products from competitors
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logo
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__: the visual branding element that stands for corporate names or trademarks
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personality
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when harley davidson has ads to reinforce that the brand is masculine, rugged, it is building brand __
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brand equity
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the value of a brand translates into __
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perceived value
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from the customer’s perspective, the relationship between a product’s or service’s benefits and its cost is called __
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brand equity
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an advantage of building strong __ is that consumers are willing to pay a higher price for the product
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brand equity
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steps in building __: 1 develop positive brand awareness 2 establish a brand’s meaning in consumer’s mind 3 elicit the proper consumer responses to a brand’s ID/meaning 4 create a consumer-brand connection
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meaning
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both the functional, performance related dimension and the abstract, imagery related dimension are used to help a consumer form a __ for the brand in her mind
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brand licensing
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__: a contractual arrangement between firms, where one firm alllows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee
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toys
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brand licensing is most common for __
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family, corporate
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multiproduct branding is also called __ branding or __ branding
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extension
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advantage of a product line __ is that the company can spend less money to develop brand awareness
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product line extension
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a __ is the practice of using a current brand name to enter a new market segment in its product class
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subbrands
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some firms use __ for each of their products, in addition to the family brand, to distinguish different parts of the product line
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brand dilution
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___: when a brand extension adversely affects consumer perceptions abt the core brand
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cobranding
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__ can benefit firms by allowing a brand to enter a new product class, capitalizing on an existing well known quality brand in it
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multibranding
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disadvantages of __ -ads and promotion are typically more expensive -awareness will have to be build from scratch
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multibranding
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___ strategy: when a firm uses a distinct name for each of its products
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fighting
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chief purpose of a __ brand is to counteract competition
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mixed branding
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__ strategy: when a firm markets products under its own name and that of a reseller bc each attracts different segments
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communication, functional, perceptual
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what are 3 benefits packaging and labeling provides a product?
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functional
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storage and protection of product are considered which kind of benefits added by packaging and labels?
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perceptual
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for firms competing in the global marketplace, “country of origin” ads on product is considered which kind of benefit added by packaging and labels?
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warranty
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__: a statement indicating the liability of the manufacturer in case of product deficiencies
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limited coverage
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__ (1 of 4 types of warranties): states the bounds of coverage and noncoverage
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implied
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__ (1 of 4 types of warranties): assign responsibility for deficiencies to the manufacturer
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full
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__ (1 of 4 types of warranties): no limits of coverage
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express
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__ (1 of 4 types of warranties): written statement of liability
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price
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__: the money or other consideration (including other products or services) exchanged for the ownership or use of a product
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surcharges
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consumers’ zeal for low prices combined with the ease of making price comparisons on the internet has resulted in many companies adding __ to their list prices
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value
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__: the relationship between a products benefits and the consumers costs
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value-pricing
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at mcdonalds, you can get several items together as a meal, for less than those items separately. this is an example of __
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reference value
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when a consumer is comparing the costs and benefits of sub items, he is developing a __
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fixed costs + variable costs
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total cost = ___
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total revenue – total cost
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profit = ___
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objectives, constraints
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marketing mngr considers pricing __ and __ to narrow the range of choices among the variety of pricing strategies
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objectives
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marketing mngrs may ID profit, market share, social responsibility, or survival as profit __
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current profit maximization, target return
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__ and __ are 2 strategies used by firms that are pursuing a profit pricing objective
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maximizing current profit
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which profit-oriented pricing objective is common bc the targets can be set and performance measured quickly?
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target return
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__ is when a company sets a profit goal of 20% for pretax ROI
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increasing sales
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a pricing objective of __ can have the disadvantage of leading to price cuts that reduce the revenues of other products in firm’s line
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revenues
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a firm w/ a sales objective will set prices at a level that generates more __
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unit volume
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the pricing objective based on the quantity of product sold by a firm is also called __
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unit volume
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pricing objective known as __ can be counterproductive if its achieved by drastic price cutting that drives down profit
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profit, sales, market share, unit volume, survival, social responsibility
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what are the 6 pricing objectives?
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pricing constraints
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__: factors that limit the range of prices a firm may set
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costs
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in long run, a firm’s __ set a floor under its price, allowing firm to survive
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pure competition, monopolistic competition, oligopoly, pure monopoly
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list the 4 types of competitive markets from most competitive to least
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oligopolistic
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when only a few firms dominate a market, its known as __ competition
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demand curve
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__: a graph representing quantity sold and price
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negative-sloping
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the shape of most typical demand curve is a __ curve
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consumer taste, consumer income, price and availability of similar products
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what are the 3 factors that influence the demand curve?
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price
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movement along a demand curve occurs bc of a change in __
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selling conditions
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shift in the demand curve is the result of a change in __
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marginal revenue
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__: the change in total revenue that results from producing and marketing one additional unit of a product
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marginal revenue
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the slope of the total revenue curve represents the __
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total, sold
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avg revenue = __ revenue / quantity __
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price, sold
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total revenue= unit __ * quantity __
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negative
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a good marketing mngr will never set prices in the zone where marginal revenue is __
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price elasticity of demand
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__: the % change in quantity demanded relative to a % change in price
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increase
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according to price elasticity, when the price of iphones drop, the demand is likely to __
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elastic
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when a 1% decrease in price produces more than a 1% increase in quanity sold, the product or service is __
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marginal analysis
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__: the continuing, concise trade off between incremental costs against incremental revenue
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total cost, total revenue
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break even analysis analyzes the relationship between which 2 at various levels of output?
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break-even point
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__ = fixed cost / (unit price – unit variable cost)
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marginal cost
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the slope of the total cost curve represents the __
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demand-oriented
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__ (1 of 4 pricing approaches) strategy: factors underlying customer tastes and preferences are weighed most heavily
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competition-orientated
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__ (1 of 4 pricing approaches) strategy: price setter stresses what “the market” is doing is determining a price
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cost-orientated
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__ (1 of 4 pricing approaches) strategy: price is set by looking at the production and marketing costs, and then adding enough to cover direct expenses, overhead and profit
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profit-orientated
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__ (1 of 4 pricing approaches) strategy: the price setter balances both revenues and costs to set a price
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demand-orientated
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penetration, price lining, and bundle pricing are all types of which pricing approach?
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skimming pricing
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in __, prices are lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices
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price lining
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__: when a firm is selling a line of products and prices them at a number of different specific pricing points
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odd-even
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in __ pricing, an org sets a price a few dollars or cents under an even number (3.99)
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cost-plus
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__ pricing entails: adding total units cost and adding a fixed percentage or fee to arrive at a price
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cost-plus
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common forms of __ pricing: percentage of cost fixed fee

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