Chapter 11 Creating Products and Pricing Strategies to Meet Customers' Needs Flashcards
Key terms used in Chapter 11 of Openstax Introduction to business
Questions
Answers
The process of discovering the needs and wants of potential buyers and customers and then providing goods and services that meet or exceed their expectations is called ___________.
marketing
_________ is the process in which two parties give something of value to each other to satisfy their respective needs.
exchange
The ____________ identifies consumer needs and then produces the goods or services that will satisfy them while making a profit for the organization.
marketing concept
The ratio of benefits to the sacrifice necessary to obtain those benefits, as determined by the customer is _______________. It reflects the willingness of customers to actually buy a product.
customer value
The customer’s feeling that a product has met or exceeded expectations is ______________.
customer satisfaction
_______________ is a strategy that focuses on forging long-term partnerships with customers by offering value and providing customer satisfaction.
relationship marketing
What are the five Ps which together make up the marketing mix?
product, price, promotion, place (distribution), and people
The process in which a firm continually collects and evaluates information about its external environment is called __________________.
environmental scanning
The _____________ is a specific group of consumers toward which a firm could direct its marketing efforts. It is often divided into segments so that marketing strategies can be directed to a more specific audience.
target market
A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition is called a(n)_______________ advantage, also called differential advantage.
competitive advantage
A firm’s ability to produce a product or service at a lower cost than all other competitors in an industry while maintaining satisfactory profit margins is called a(n) ________________ advantage.
cost competitive advantage
A firm’s ability to provide a unique product or service with a set of features that the target market perceives as important and better than the competitor’s is called a(n) ________________ advantage.
differential competitive advantage
A firm’s ability to target and effectively serve a single segment of the market, often within a limited geographic area is called a(n) ________________ advantage.
niche competitive advantage
The ____________ is a blend of product offering, pricing, promotional methods, distribution system, and strategies for utilizing people that creates an offering that brings a specific group of consumers superior value.
marketing mix
Taking the good or service and selecting a brand name, packaging, colors, a warranty, accessories, and a service program is the _________.
product strategy
Setting a price based upon the demand for and cost of a good or service is the _________.
pricing strategy
Creating the means by which products flow from the producer to the consumer is the _______________.
distribution strategy
The unique combination of personal selling, traditional advertising, publicity, sales promotion, social media, and e-commerce to stimulate the target market to buy a product. Sometimes referred to as the promotion mix is the _____________________.
promotion strategy
__________ is the actions people take in buying and using goods and services.
buyer behavior
The set of values, ideas, attitudes, and other symbols created to shape human behavior is known as __________.
culture
_______________ groups are formal and informal groups that influence buyer behavior.
reference groups
A way of organizing and grouping how an individual reacts to situations is ____________.
personality
The process of ____________ includes separating, identifying, and evaluating the layers of a market in order to identify a target market.
market segmentation
The differentiation of markets through the use of categories such as age, education, gender, income, and household size is ______________ segmentation.
demographic segmentation
The differentiation of markets by region of the country, city or county size, market density, or climate is ______________ segmentation.
geographic segmentation
The differentiation of markets by personality or lifestyle is ______________ segmentation.
psychographic segmentation
The differentiation of markets based on what a product will do rather than on customer characteristics is ______________ segmentation.
benefit segmentation
The differentiation of markets based on the amount of the product purchased is ______________ segmentation.
volume segmentation
The process of planning, collecting, and analyzing data relevant to a marketing decision is _____________.
marketing research
A marketing research method in which data is gathered from respondents, either in person, by telephone, by mail, at a mall, or through the internet to obtain facts, opinions, and attitudes is called _____________ research.
survey research
A marketing research method in which the investigator monitors respondents’ actions without interacting directly with the respondents; for example, by using cash registers with scanners is called _____________ research.
observation research
In the marketing research method called ______________, the investigator changes one or more variables — price, packaging, design, shelf space, advertising theme, or advertising expenditures — while observing the effects of these changes on another variable (usually sales).
experiment
In marketing, a good, service or idea, along with its perceived attributes and benefits, that creates value for the customer is called a(n) ___________.
product
Products that either are not planned as a purchase by a potential buyer or are known but the buyer does not actively seek them, such as funeral services, are _________ products.
unsought products
Relatively inexpensive items that require little shopping effort and are purchased routinely without planning are ____________ products.
convenience products
Items that are bought after considerable planning, including brand-to-brand and store-to-store comparisons of price, suitability, and style are ______________ products.
shopping products
Items for which consumers search long and hard and for which they refuse to accept substitutes are ______________ products.
specialty products
Large, expensive items with a long life span that are purchased by businesses for use in making other products or providing a service are ______________ products.
capital products
Which items (purchased by businesses) are smaller and less expensive than capital products and usually have a life span of less than one year?
expense items
A new flavor, size, or model using an existing brand name in an existing category is called a(n) _____________.
line extension
A group of eight to 12 participants led by a moderator in an in-depth discussion on one particular topic or concept is a(n) _________________.
focus group
_____________ is a method of generating ideas in which group members suggest as many possibilities as they can without criticizing or evaluating any of the suggestions.
brainstorming
The process of testing a new product among potential users is called _________________.
test marketing
The _____________ is the person who develops and implements a complete strategy and marketing program for a specific product or brand.
product manager
The _______________ is a pattern of sales and profits over time for a product or product category.
product life cycle
What are the stages of the product life cycle?
introductory stage, growth stage, maturity, and decline (and death)
The strategy of introducing a product with a high initial price and lowering the price over time as the product moves through its life cycle is known as _________________.
price skimming
The strategy of selling new products at low prices in the hope of achieving a large sales volume is known as _________________.
penetration pricing
The strategy of pricing products below the normal markup or even below cost to attract customers to a store where they would not otherwise shop is known as _________________.
leader pricing
A(n) __________ is a product priced below cost as part of a leader-pricing strategy.
loss leader
_____________ uses computer algorithms that allow for prices to change based on demand.
dynamic pricing
____________ is the strategy of grouping two or more related products together and pricing them as a single product.
bundling
The strategy of setting a price at an odd number to connote a bargain and at an even number to suggest quality is known as _________________.
odd-even (psychological) pricing
The strategy of increasing the price of a product so that consumers will perceive it as being of higher quality, status, or value is known as __________________.
prestige pricing
A computerized file of customers’ and potential customers’ profiles and purchase patterns is a(n) __________.
marketing database
________________ creates a unique marketing mix for every customer.
one-to-one marketing
Large data sets and systems and solutions developed to manage large accumulations of data is called __________________.
big data
