Understanding Business Chapter 14 Flashcards
Value
Good quality at a fair price. When consumers calculate the value of a product. they look at the benefits and then subtract the cost to see if the benefits exceed the costs.
Total Product Offer
Everything consumers evaluate when deciding whether to buy something. also called a value package.
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
Those products that the consumer buys only after comparing value. quality. price. and style from a variety of sellers.
Specialty Goods and Services
Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute. the consumer puts forth a special effort to purchase them.
Unsought Goods and Services
Products that consumers are unaware of. haven’t necessarily thought of buying. or find that they need to solve an unexpected problem.
Industrial Goods
Products used in the production of other products. Sometimes called business goods or B2B goods.
Bundling
Grouping two or more products together and pricing them as a unit.
Brand
A name. symbol. or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.
Trademark
A brand that has exclusive legal protection for both its brand name and design.
Manufacturers’ Brand Names
The brand names of manufacturers that distribute products nationally.
Dealer (Private-Label) Brands
Products that don’t carry the manufacturer’s name but carry a distributor or retailer’s name instead.
Generic Goods
Nonbranded products that usually sell at a sizable discount compared to national or private-label brands.
Knockoff Brands
Illegal copies of national brand-name goods.
Brand Equity
The value of the brand name and associated symbols.
Brand Loyalty
The degree to which customers are satisfied. like the brand. and are committed to further purchases.
Brand Awareness
How quickly or easily a given brand name comes to mind when a product category is mentioned.
Brand Association
The linking of a brand to other favorable images.
Brand Manager
A manager who has direct responsibility for one brand or one product line. called a product manager in some firms.
Product Screening
A process designed to reduce the number of new product ideas being worked on at any one time.
Product Analysis
Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.
