Chapter 14 Flashcards

1
Q

What is the best way to compete in global markets

A

design better products that customers perceive as the best value.

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2
Q

Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.

A

Value

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3
Q

Handing off various parts of your innovation process—often to companies overseas.

A

Distributed Product Development

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4
Q

Everything that consumers evaluate when deciding whether to buy something; also called a value package.

A

Total product offer

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5
Q

A group of products that are physically similar or are intended for a similar market.

A

Product line

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6
Q

The combination of product lines offered by a manufacturer.

A

Product mix

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7
Q

Product differentiation

A

The creation of real or perceived product differences.

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8
Q

Four categories of popular consumer good clasifications

A

Convenience, shopping, specialty, unsought

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9
Q

What are convenience goods

A

products customers want to purchase frequently and with minimum effort. Gum, candy, gas, etc.

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10
Q

What are shopping G&S

A

Products people buy only after comparing value, price and style.

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11
Q

What are specialty G&S

A

G&S with unique characteristics. High end items, wines, chocolates, etc.

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12
Q

What are unsought G&S

A

G&S consumers don’t think of until they need it. Car towing, funeral, etc.

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13
Q

Products used in the production of other products. Sometimes called business goods or B2B goods

A

Industrial goods

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14
Q

Grouping two or more products together and pricing them as a unit.

A

Bundling

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15
Q

A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.

A

Brand

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16
Q

A brand that has exclusive legal protection for both its brand name and its design.

A

Trademark

17
Q

the brand names of manufacturers that distribute products nationally

A

manufacturers’ (national) brands

18
Q

Products that don’t carry the manufacturer’s name but carry a distributor or retailer’s name instead.

A

dealer (private-label) brands

19
Q

The value of the brand name and associated symbols.

A

Brand Equity

20
Q

The linking of a brand to other favorable images.

A

brand association

21
Q

six stages of product development

A
product screening
product analysis
development 
testing
commercialization
22
Q

How many ideas for one commercial product

A

7

23
Q

A process designed to reduce the number of new-product ideas being worked on at any one time.

A

Product screening

24
Q

Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.

A

Product analysis

25
Q

Taking a product idea to consumers to test their reactions.

A

Concept testing

26
Q

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.

A

Commercialization

27
Q

A theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline.

A

Product life cycle

28
Q

three approaches to pricing

A

cost base
demand based
competition based

29
Q

In the long run, the __________ determines what the price will be.

A

market

30
Q

Designing a product so that it satisfies customers and meets the profit margins desired by the firm.

A

Target pricing

Price decides the design and development from the beginning

31
Q

A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors’ prices.

A

competition-based pricing

32
Q

The process used to determine profitability at various levels of sales.

A

Break-even analysis

33
Q

All the expenses that remain the same no matter how many products are made or sold.

A

Total Fixed Cost

34
Q

Costs that change according to the level of production.

A

Variable Cost

35
Q

Strategy in which a new product is priced high to make optimum profit while there’s little competition.

A

skimming price strategy

36
Q

Strategy in which a product is priced low to attract many customers and discourage competition.

A

penetration strategy