Chapter 5

Question 0

Consumer goods

Answer 0

Purchased and used by the ultimate consumer

Question 1

Product Item

Answer 1

A specific model or size of project

Question 2

Business goods

Answer 2

Purchased by organizations for use in there operation

Question 3

Point of Difference

Answer 3

Unique product characteristic or benefit that’s sets the product apart from its competitors

Question 4

SWOT Anyalsis

Answer 4

Strength weakness opportunities and threats, helps develop a product

Question 5

Idea generation

Answer 5

Creating an idea based off consumers, employees, and research

Question 6

Screening and evaluation

Answer 6

Focus groups

Question 7

Business analysis

Answer 7

Finical aspects are analyzed

Question 8

Development

Answer 8

Developing a prototype

Question 9

Test marketing

Answer 9

Offering a product to a small group to see its popularity

Question 10

Commercialization

Answer 10

Involves producing and marketing a new product

Question 11

Product life cycle

Answer 11

Introduction, growth, maturity, and decline

Question 12

3 ways of Managing the life cycle

Answer 12

Modify the product
Market the product
Reposition the product

Question 13

What does price determine?

Answer 13

A company’s profit or loss

Question 14

Pricing strategy: prestige pricing

Answer 14

Pricing based on customer perception

Question 15

Pricing strategy: odd-even pricing

Answer 15

Pricing goods with either an odd or an even number to match the products image

Question 16

Pricing strategy: target pricing

Answer 16

Pricing goods according to what the customer is willing to pay

Question 17

Markup

Answer 17

Difference between the retail or wholesale price

Question 18

Cost-plus

Answer 18

Pricing products by calculating all costs and expenses and adding desired profit

Question 19

Skimming pricing

Answer 19

Pricing a new item high

Question 20

Penetration pricing

Answer 20

Pricing below the competion

Question 21

Market share objective

Answer 21

The percentage of total sales of all the companies that sell a product

Question 22

Price lining

Answer 22

Selling all goods in a product line at a specific price

Question 23

Bundiling

Answer 23

Selling several items as a package for a set price

Question 24

Loss leader

Answer 24

Pricing an item below cost to draw customers into the store

Question 25

Yield management pricing

Answer 25

Pricing items at different prices to maximize revenue when limited capacity is involved

Question 26

Price fixing

Answer 26

Illegal practice whereby competitors agree to set the same price

Question 27

Robinson act

Answer 27

Prohibits price fixing and predatory pricing

Question 28

Predatory pricing

Answer 28

Driving others out of business by selling cheap products

Question 29

Price discrimation

Answer 29

Changing prices to match competitors