Chapter 15 Definitions Flashcards
Product
Everything one receives in an exchange, including all tangible and intangible attributes and expected benefits;
It may be a good, service or an idea.
Good
Real, physical thing that we can touch.
Service
The result of applying human or mechanical effort to a person or thing.
Thus a change we pay others to make for us.
Idea
Philosophies, lessons, concepts or advice.
Consumer product
A product purchased to satisfy personal and family needs
Business product
A product bought for resale, for making other products or for use in a firm’s operations.
Convenience product
Relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort.
Shopping product
An item for which buyers are willing to expend considerable effort on planning and making the purchase.
Specialty Product
A product that possesses one or more unique characteristics for which a group of buyers is willing to expend considerable purchasing effort.
Raw material
Basic material that actually becomes part of a physical product.
Major equipment
Includes large tools and machines used for production purposes.
Accessory equipment
Standardized equipment used in a firm’s production or office activities.
Component part
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.
Process material
A material that is used directly in the production of another product but is not readily identifiable in the finished product.
Supply
An item that facilitates production of another product but is not readily identifiable in the finished product.
Business Service
An intangible product that an organization uses in its operations.
Product life-cycle
A series of stages in which a product’s sales revenue and profit increase, reach a peak and then decline.
Product line
A group of similar products that differ only in relatively minor characteristics.
Product mix
All the products a firm offers for sale.
Product modification
The process of changing one or more of a product’s characteristics.
Line extension
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 customer needs.
Product deletion
The elimination of one or more products from a product line.
Brand
A name, term, symbol, design or any combination of these that identifies a seller’s products and distinguishes it from others sellers’ products.
Brand name
Part of a brand that can be spoken. It may include letters, words, numbers of pronounceable symbols.
Brank mark
Part of a brand that is a symbol or distinctive design.
Trademark
A brand name or brand mark that is registered with the U.S. Patent and Trademark Office and thus is legally protected from use by anyone except its owner.
Trade name
The complete and legal name of an organization.
Manufacturer brand
A brand that is owned by a manufacturer.
Store brand
A brand that is owned by an individual wholesaler or retailer.
Generic brand
A product with no brand at all.
Brand loyalty
Extent to which a customer is favorable toward buying a specific brand.
Brand equity
Marketing and financial value associated with a brand’s strength in a market.
Individual branding
The strrategy in which a firm uses a different brand for each of its products.
Family branding
The strategy in which a firm uses the same brand for all or most of its products.
Brand extension
Using an existing brand to brand a new product in a different product category.
Packaging
All the activities involved in developing and providing a container with graphics for a profit.
Labeling
The presentation of information on a product or its package.
Express warranty
A written explanation of the producer’s responsibilities in the event that a product is found to be defective or otherwise unsatisfactory.
Price
The amount of money a seller is willing to accept in exchange for a product at a given time and under given circumstances.
Supply
The quantity of a product that producers are willing to sell at each of various prices
Demand
The quantity of a product that buyers are willing to purchase at each of various prices.
Price competition
An emphasis on setting a price equal to or lower than competitors’ prices to gain sales or market share.
Non-price competition
Competition that is based on factors than price.
Product differentiation
The process of developing and promoting differences between one’s product and all similar products.
Markup
The amount a seller adds to the cost of a product to determine its basic selling price.
Breakeven quantity
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).
Total revenue
The total amount received from sales of a product.
Fixed cost
A cost incurred no matter how many units of a product are produced or sold.
Variable cost
A cost that depends on the number of units produced
Total cost
The sum of the fixed costs and the variable costs attributed to a product
Price skimming
The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle.
Penetration pricing
The strategy of setting a low price for a new product.
Negotiated pricing
Establishing a final price through bargaining.
Secondary-market pricing
Setting one price for the primary target market and a differet price for another market.
Periodic discounting
Temporary reduction of prices on a patterned or systematic basis.
Random discounting
Temporary reduction of prices on an unsystematic basis.
Odd-number pricing
The strategy of setting prices using odd numbers that are slightly below whole-dollar amounts.
Multiple-unit pricing
The strategy of setting a single price for two or more units.
Reference pricing
Pricing a product at a moderate level and positioning it next to a more expensive model or brand.
Bundle pricing
Packaging two or more complementary products and selling them for a single price.
Everyday low prices
Setting a low price for products on a consistent basis.
Customary pricing
Pricing on the basis of tradition.
Captive pricing
Pricing the basic product in a product line low, but pricing related items at a higher level.
Premium pricing
Pricing the highest-quality or most-versatile products higher than other models in the product line.
Price lining
The strategy of selling goods only at certain predetermained prices that reflect definite price breaks.
Price leaders
Products price below the usual markup, near cost, or below cost.
Special-event pricing
Advertised sales or price cutting linked to a holiday, season or event.
Comparison discounting
Setting a price at a specific level and comparing it with a higher price.
Transfer pricing
Prices charged in sales between an organization’s units.
Discount
A deduction from the price of an item.
