Tooic 11: Ch. 14-15 Flashcards
Value
Good quality at a fair price
Distributed product development
Handing off various parts of your innovation process often the companies overseas
Total product offer
Everything that consumers evaluates when deciding whether to buy some thing
Product line
A group of products that are physically similar or are intended for a similar market
Product mix
The combination of product lines offered by a manufacturer
Product differentiation
The creation of real or perceived, product differences
Convenience goods and services
Products that the consumer wants to purchase frequently and with a minimum of effort
Shopping goods and services
Products, the consumer buys only after comparing value, quality price and style from a variety of sellers
Specialty goods and services
Products with unique characteristics and brand identity
Unsought goods and services
Products to solve an unexpected problem
Industrial goods
Used in the production of other products (called B2B goods)
Bundling
Grouping two or more products together, and pricing them as a unit
Product screening
Limit new product ideas being worked on at one time
Product analysis
Cost estimates and sales forecasts for a product
Concept testing
Taking a product idea to consumers to test for reactions
Competition based pricing
Pricing strategy based on what all other competitors are doing
Price leaderships
More dominant firms set pricing
Break even analysis
Process used to determine profitability at various levels of sales
Total fixed costs
All the expenses that remain the same no matter how many products are made or sold
Skimming price strategy
A new product is priced high to make optimum profit while there’s a little competition
Penetration strategy
A product of priced low to charge many customers and discourage
Every day low prices
Setting prices lower than competitors, and then not having to have any special sales
High low pricing strategy
Setting prices higher and then having many special sales
Psychological pricing
Pricing goods and services at price points that make the product appear less expensive than it is
