Chapter 14 - Pricing goods & services

Question 0

Distributed product development

Answer 0

Handing off various parts of your innovation process

Question 1

Value

Answer 1

Good quality at a fair price

Question 2

Total product offer

Answer 2

Everything that consumers evaluate when deciding whether to buy something; value package

Question 3

Product line

Answer 3

Group of products that are physically similar or are intended for a similar market

Question 4

Product mix

Answer 4

The combination of product lines offered by a manufacturer

Question 5

Product differentiation

Answer 5

Creation of real or perceived product differences

Question 6

Convenience goods and services

Answer 6

Products that consumer wants to purchase frequently and with a minimum of effort

Question 7

Shopping goods and services

Answer 7

Products bought only after comparing value, quality, price, and style from a variety of sellers

Question 8

Specialty goods and services

Answer 8

Products with unique characteristics and brand identity (special effort to purchase them)

Question 9

Unsought goods and services

Answer 9

Products that consumers are unaware of, didn’t really think of buying, or need to buy to solve an unexpected problem

Question 10

Industrial goods

Answer 10

Products used in the production of other products

Question 11

Bundling

Answer 11

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

Question 12

Brand

Answer 12

A name, symbol, or design that identifies a good or service of one seller or group of sellers and distinguishes them from the goods and services of competitors

Question 13

Trademark

Answer 13

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

Question 14

Manufacturers brands

Answer 14

Brand names of Manufacturers that distributes products nationally

Question 15

Dealer (private label) brands

Answer 15

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

Question 16

Generic good

Answer 16

Nonbranded products that sell at a discount

Question 17

Knock off brands

Answer 17

Illegal copies of national brand-name goods

Question 18

Brand equity

Answer 18

The value of the brand-name and associated symbols

Question 19

Brand loyalty

Answer 19

Degree to which customers are satisfied, like the brand, and are committed to further purchases

Question 20

Brand awareness

Answer 20

How quickly or easily a brand name comes to mind when a product category is mentioned

Question 21

Brand association

Answer 21

The linking of a brand to other favorable images

Question 22

Brand manager

Answer 22

Has direct responsibility for one brand or one product line

Question 23

Product screening

Answer 23

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

Question 24

Product analysis

Answer 24

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

Question 25

Concept testing

Answer 25

Taking a product idea to consumers to test their reaction

Question 26

Commercialization

Answer 26

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 27

Product life cycle

Answer 27

Model of what happens to sales and profits for a product class over time– introduction, growth, maturity, decline

Question 28

Target costing

Answer 28

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

Question 29

Competition-based pricing

Answer 29

Pricing strategy based on what all the other competitors are doing

Question 30

Price leadership

Answer 30

Strategy by which one or more dominate firms set the pricing practices that all competitors in an industry follow

Question 31

Break-even analysis

Answer 31

Process used to determine profitability at various levels of sales

Question 32

Total fixed costs

Answer 32

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

Question 33

Variable costs

Answer 33

Costs that change according to the level of production

Question 34

Skimming price strategy

Answer 34

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

Question 35

Penetration strategy

Answer 35

Strategy on which a product is priced low to attract many customer and discourage competition

Question 36

Everyday low pricing (EDLP)

Answer 36

Setting prices lower the. Competitors and the. Not having any special sales

Question 37

High-low pricing strategy

Answer 37

Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than the competitors’

Question 38

Psychological pricing

Answer 38

Pricing goods and services at price points that make the product appear less expensive than it is