Understanding business eleventh edition ch.14 key terms – Flashcards
Unlock all answers in this set
Unlock answersquestion
Value
answer
Good quality at a fair price. when consumers calculate the value if a product, they look at the benefits and subtract the cost to see if the benefits exceed the cost
question
Distributed product development
answer
Handing off various parts of your innovation process-often to companies in other countries
question
Total product offer
answer
Everything that consumers evaluate when deciding wether to buy something; also called a value package.
question
Product line
answer
A group of products that are physically similar or are intended for a similar market
question
Product mix
answer
The combination of product lines offered by a manufacturer.
question
Product differentiation
answer
The creation of real or perceived product differences
question
Convince goods
answer
Products that consumers want to purchase frequently with a minimum effort
question
Shopping goods and services
answer
Those products that the consumer buys only after comparing value, quality, price and style from a variety of sellers
question
Specialty goods and services
answer
Consumers products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute
question
Unsought goods and services
answer
Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve and unexpected problem
question
Industrial goods
answer
Products used in the production of other products sometimes called business goods B2B goods
question
Bundling
answer
Grouping 2 or more products together and pricing them as one unit
question
Brand
answer
Name symbol or design that identify a the good or service of that seller
question
Trademark
answer
Brand that has exclusive legal protection for both its brand name and it's design
question
Manufacturers brand
answer
The brand name of manufactures that distribute products nationally
question
Dealer (private-label) brands
answer
Products that don't carry the manufacturers name but carry a distributors or retailers name
question
Generic goods
answer
Non branded products that usually sell at a sizable discount compared to national or private-label brands
question
Knock off brands
answer
illegal copies of national brand name goods
question
Brand equity
answer
The value of the brand name and associated symbols
question
Brand loyalty
answer
The degree to which customers are satisfied, like the brand, and are committed to further purchases.
question
Brand association
answer
The linking of a brand to other favorable images
question
Brand managers
answer
A manager who has direct responsibility for one brand or one product line called a product manager in some firms
question
Brand awarness
answer
How quickly or easily a brand name comes to mind when a product catalog is mentioned.
question
Development process
answer
Product development is a six stage process.
question
Product screening
answer
A process designed to reduce the number of new product ideas being worked on at any one time
question
Product analysis
answer
Making cost eliminates and sales forecasts to get a feeling for profitability of new product ideas
question
Concept testing
answer
Taking a product idea to consumers to test their reactions
question
Commercialization
answer
Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers
question
Product life cycle
answer
A theoretical model of what happens to sales and profits for product class over time; the four stages of the cycle are introduction, growth, maturity, and decline
question
Targeting cost
answer
Designing a product so that it satisfies customers and meets the profit margins desired by the firm
question
Competition based pricing
answer
A pricing strategy based on what all the other competitors are doing the price can be set at above or below competitors prices
question
Price leadership
answer
The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow
question
Break-even analysis
answer
The process used to determine profitability at various levels of sale
question
Total fixed costs
answer
All the expenses that remain the same no matter how many products are made or sold
question
Variable costs
answer
Costs that change according to the level of production
question
Skimming price strategy
answer
A product is priced high to make optimum profit while there's little competition
question
Penetration strategy
answer
Strategy in which a new product is priced low to attract many customers and discourage competitors
question
Everyday low price (EDLP)
answer
Setting prices lower than competitors and then not having any special sales
question
High-Low pricing strategy
answer
Setting prices that are higher than EDLP stores but having many special sales where the prices are lower than competitors prices
question
Psychological pricing
answer
Pricing goods and services at price points that make the product appear less expensive than it is
