Chapter 12 Flashcards
A product bought for resale for making other products or for use in a firms operations
Business product
A product purchased to satisfy a personal and family need
Consumer product
Convenience product
A relatively inexpensive frequently purchased item for which buyers want to exert only minimal effort
An item for which buyers are willing to expend considerable effort on an ing and making the purchase
Shopping product
An item that possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable purchasing effort
Specialty product
A basic material that actually becomes part of a physical product: usually comes from mines, forests, oceans or recycled waste
Raw material
Standardized equipment used in a firms production or office activities
Accessory equipment
Larger tools and machines used for production purposes
Major equipment
An item that becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly
Component part
A material that is used directly in the production of another product but is not readily identifiable in the finished product
Process material
An it that facilitates production and operations but does not become part of a finished product
Supply
An intangible product that an organization uses in its operations
Business services
A series of stages in which a products sales revenue and profit increase reach a peak and decrease
Product life cycle
A group of similar characteristic that differ only in minor characteristics
Product line
All products a firm offers for sale
Product mix
The process of changing one or more of a products characteristics
Product modification.
The development of a new product that is closely related to one or more products In the existing product line but designed specifically to meet somewhat different costumer needs
Line extension
The elimination of one or more products from a product line
Product deletion
A name, term symbol , design, or any combination of these that identifies a sellers products as a distinct from those of others sellers
Brand
The part of a brand that can be spoken
Brand name
The part of a brand that is a symbol or distinctive design
Brand mark
A brand name or brand mark that is registered with the U.S. Patent office and thus is legally protected from use by anyone except its owner
Trademark
The complete and legal name of an organization
Trade name
A brand that is owned by. Manufacturer
Manufacturer brand
A brand that is owned by an individual wholesaler or retailer
Store brand
A product at no brand at all
Generic product
Extent to which a customer is favorable toward buying a specific brand
Brand loyalty
Marketing and financial value associated with a brands strength in a market
Brand equity
The strategy in which a firm uses a different brand for each of its products
Individual branding
The strategy in which a firm uses the same brand for all or most of its products
Family branding
Using an existing brand to brand a new product in a different product category
Brand extension
All activities involved in developing and providing a container with graphics for a product
Packaging
The presentation of information on a product or its package
Labeling
A written explanation of a producers responsibilities in the event that a product is found to be defective or otherwise unsatisfactory
Express warranty
The amount of money a seller is willing to Accept I. Exchange for a product at any given time under any given circumstances
Price
An emphasis on setting a price equal to or lower than competitors prices to gain sales or market share
Price competition
Competition based on other factors than price
Non-price competition
The process of developing and promoting differences between ones product and all similar products
Product differentiation
The amount a seller adds to the cost of a product to determine its basic selling price
Markup
The number of units that must be sold for the total revenue ( from all units sold) to equal the total cost( of all units sold)
Break even quantity
The total amount received from the sales of a product
Total revenue
A cost incurred no matter how many units of a product are produced or sold
Fixed cost
A cost that depends on the number of units produced
Variable cost
The sum of the fixed costs and the variable costs attributed to a product
Total cost
The strategy of charging the highest possible price for a product during the introduction stage of its life cycle
Price skimming
The strategy of setting a low price for a new product
Penetration pricing
Establishing a final price through bargaining
Negotiated price
Setting one price for the primary target market and a different price for a different market
Secondary market pricing
Temporary reduction of prices on a patterned or systematic basis
Periodic discounting
Temporary reduction of prices on an unsystematic basis
Random discounting
The strategie of setting prices using odd numbers that are slightly below the whole dollar amount
Odd-number pricing
The strategie of setting a single price for two or more units
Multiple unit pricing
Pricing a product at a moderate level and positioning it next to a more expensive model or brand
Reference pricing
Packaging together two or more complimentary products and selling them for a single price
Bundle pricing
Setting a low price on a consistent basis
Everyday low prices (EDLPs)
Pricing on the basis of tradition
Customary pricing
Pricing the basic product in a line low, but pricing related items at a higher level
Captive pricing
Pricing the highest quality or most versatile products higher than other models in a product line
Premium pricing
The strategy of selling goods only at certain predetermined prices that reflect price breaks
Price lining
Product prices below the usual mark up near cost, or below cost
Price leaders
Advertised sales or price cutting linked to a holiday season or event
Special event pricing
Setting a price at a specific level and comparing it with a higher price
Comparison discounting
Prices charged in sales between an organizations units
Transfer pricing
A deduction from the price of an item
Discount