Chapter 14 VOCAB

Question 1

everyday goods and services that people buy frequently, usually without much conscious planning

Answer 1

convenience products

Question 2

fairly important goods and services that people buy less frequently with more planning and comparison

Answer 2

shopping products

Question 3

particular brands that the buyer especially wants and will seek out, regardless of location or price

Answer 3

specialty products

Question 4

inexpensive products that organizations generally use within a year of purchase

Answer 4

expense items

Question 5

more expensive organizational products with a longer useful life, ranging from office and plant equipment to entire factories

Answer 5

capital items

Question 6

four stages through which a product progresses: introduction, growth, maturity, and decline

Answer 6

product life cycle

Question 7

a formal process of generating, selecting, developing, and commercializing product ideas

Answer 7

product development process

Question 8

preproduction samples of products used for testing and evaluation

Answer 8

prototypes

Question 9

product develop stage in which a product is sold on a limited basis to gauge its market appeal

Answer 9

test marketing

Question 10

large-scale production and distribution of a product

Answer 10

commercialization

Question 11

a name, term, sign, symbol, design, or combination of those used to identify the products of a firm and to differentiate them from competing products

Answer 11

brand

Question 12

the value that a company has built up in a brand

Answer 12

brand equity

Question 13

the degree to which customers continue to purchase a specific brand

Answer 13

brand loyalty

Question 14

portion of a brand that can be expressed orally, including letters, words, or numbers

Answer 14

brand names

Question 15

portion of a brand that cannot be expressed verbally

Answer 15

brand mark

Question 16

a concise graphical and/or textual representation of a brand name

Answer 16

logo

Question 17

brands that have been given legal protection so that their owners have exclusive rights to their use

Answer 17

trademarks

Question 18

brands owned by the manufacturers and distributed nationally

Answer 18

national brands

Question 19

brands that carry the label of a retailer or a wholesaler rather than a manufacturer

Answer 19

private brands

Question 20

products characterized by a plain label, with no advertising and no brand name

Answer 20

generic products

Question 21

partnership between two or more companies to closely link their brand names together for a single product

Answer 21

co-branding

Question 22

agreement to product and market another company’s product in exchange for a royalty or fee

Answer 22

license

Question 23

managers who develop and implement the marketing strategies and programs for a specific product or brand

Answer 23

brand managers

Question 24

a series of related products offered by a firm

Answer 24

product line

Question 25

complete list of all products that a company offers for sale

Answer 25

product mix

Question 26

applying a successful brand name to a new product category

Answer 26

brand extension

Question 27

a measure of the sensitivity of demand to changes in price

Answer 27

price elasticity

Question 28

business costs that remain constant regardless of the number of units produced

Answer 28

fixed costs

Question 29

business costs that increase with the number of units produced

Answer 29

variable costs

Question 30

method of calculating the minimum volume of sales needed at a given price to cover all costs

Answer 30

break-even analysis

Question 31

sales volume at a given price that will cover all of a company’s costs

Answer 31

break-even point

Question 32

method of setting prices based on production and marketing costs, rather than conditions in the marketplace

Answer 32

cost-based pricing

Question 33

method of setting prices based on customer perceptions of value

Answer 33

value-based pricing

Question 34

computer-based pricing method that creates a demand curve for every product to help managers select a price that meets specific marketing objectives

Answer 34

optimal pricing

Question 35

charging a high price for a new product during the introductory stage and lowering the price later

Answer 35

skim pricing

Question 36

introducing a new product at a low price in hopes of building sales volume quickly

Answer 36

penetration pricing

Question 37

selling one product at a loss as a way to entice customers to consider other products

Answer 37

loss-leader pricing

Question 38

allowing customers to pay the amount they think a product is worth

Answer 38

participative pricing

Question 39

temporary price reductions to stimulate sales or lower prices to encourage certain behaviors such as paying with cash

Answer 39

discounts

Question 40

offering several products for a single price that is presumably lower than the total of the products’ individual prices

Answer 40

bundling

Question 41

continually adjusting prices to reflect changes in supply and demand

Answer 41

dynamic pricing