Chapter 5 Flashcards

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0
Q

Consumer goods

A

Purchased and used by the ultimate consumer

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1
Q

Product Item

A

A specific model or size of project

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2
Q

Business goods

A

Purchased by organizations for use in there operation

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3
Q

Point of Difference

A

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

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4
Q

SWOT Anyalsis

A

Strength weakness opportunities and threats, helps develop a product

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5
Q

Idea generation

A

Creating an idea based off consumers, employees, and research

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6
Q

Screening and evaluation

A

Focus groups

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7
Q

Business analysis

A

Finical aspects are analyzed

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8
Q

Development

A

Developing a prototype

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9
Q

Test marketing

A

Offering a product to a small group to see its popularity

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10
Q

Commercialization

A

Involves producing and marketing a new product

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11
Q

Product life cycle

A

Introduction, growth, maturity, and decline

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12
Q

3 ways of Managing the life cycle

A

Modify the product
Market the product
Reposition the product

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13
Q

What does price determine?

A

A company’s profit or loss

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14
Q

Pricing strategy: prestige pricing

A

Pricing based on customer perception

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15
Q

Pricing strategy: odd-even pricing

A

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

16
Q

Pricing strategy: target pricing

A

Pricing goods according to what the customer is willing to pay

17
Q

Markup

A

Difference between the retail or wholesale price

18
Q

Cost-plus

A

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

19
Q

Skimming pricing

A

Pricing a new item high

20
Q

Penetration pricing

A

Pricing below the competion

21
Q

Market share objective

A

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

22
Q

Price lining

A

Selling all goods in a product line at a specific price

23
Q

Bundiling

A

Selling several items as a package for a set price

24
Q

Loss leader

A

Pricing an item below cost to draw customers into the store

25
Q

Yield management pricing

A

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

26
Q

Price fixing

A

Illegal practice whereby competitors agree to set the same price

27
Q

Robinson act

A

Prohibits price fixing and predatory pricing

28
Q

Predatory pricing

A

Driving others out of business by selling cheap products

29
Q

Price discrimation

A

Changing prices to match competitors