Vocabulary (Exam 2)

Question 1

The physical, tangible elements that make up a product’s essential benefit

Answer 1

Core Product

Question 2

Frequently purchased, relatively low-cost products that consumers have little interest in seeking new information about or considering other product options

Answer 2

Convenience Goods

Question 3

A set of assets and liabilities linked to a brand’s name and symbol that adds to or subtracts from the value provided by a product or service to a firm or that firm’s customers

Answer 3

Brand Equity

Question 4

The joining of two or more well-known brands in a common product or taking two brands and marketing them in partnership

Answer 4

Co-branding

Question 5

When a seller advertises a low price but has no intent to actually make the lower priced-item available for sale

Answer 5

Bait and Switch

Question 6

Building a price by adding standardized markup on top of the costs associated with the offering

Answer 6

Cost-plus pricing

Question 7

A shipping method used by manufacturers to better match quantities needed in terms of the space constraints and inventory turnover requirements of their buyers

Answer 7

Breaking Bulk

Question 8

A function performed by intermediaries that involves taking product from multiple sources and sorting it into different classifications for sales through the channel

Answer 8

Accumulating Bulk

Question 9

The process of accumulating products from several sources to then make those products available down the channel as a convenient assortment for consumers

Answer 9

Creating Assortments

Question 10

The investment of a channel member in backward or forward vertical integration by buying controlling interests in other intermediaries

Answer 10

Corporate Vertical Marketing System (VMS)

Question 11

The binding of otherwise independent entities in the vertical marketing system legally through contractual agreements

Answer 11

Contractual Vertical Marketing System (VMS)

Question 12

The number of different product categories offered by a retailer

Answer 12

Breadth of Merchandise

Question 13

Additional features, designs, or innovations that extend beyond the core product to exceed customer expectations

Answer 13

Enhanced Product

Question 14

Products that require consumers to do research and compare across product dimensions like color, size, features, and price

Answer 14

Shopping Goods

Question 15

Unique products in which consumers’ purchase decision is based on a defining characteristics

Answer 15

Specialty Goods

Question 16

Products that consumers do not seek out and often would rather not purchase at all

Answer 16

Unsought Goods

Question 17

When a company fails to stop a bad product idea from moving into product development

Answer 17

Go-to-market Mistake

Question 18

When a product that is a good idea is prematurely eliminated during the screening process and ultimately never introduced to the market

Answer 18

Stop-to-market Mistake

Question 19

Strategies designed to involve investing against existing customers to gain additional usage of existing products

Answer 19

Market Penetration

Question 20

A pricing strategy in which a firm enters a market at a relatively high price point, usually in an effort to create a strong price-quality relationship for the product

Answer 20

Market Skimming

Question 21

When a firm offers other manufacturers the right to use its brand in exchange for a set fee or percentage of sales

Answer 21

Brand Licensing

Question 22

Any information bearing experience that a customer or prospect has with the brand, the product category, or the sponsoring organization that relates to the marketer’s product or service.

Answer 22

Brand Contact

Question 23

A pricing tactic in which the price is expressed in whole-dollar amounts

Answer 23

Even Pricing

Question 24

When shippers set up geographic pricing zones based on the distance from the shipping location

Answer 24

Zone Pricing

Question 25

A channel that has no intermediaries and operates strictly from producer to end-user consumer or business user

Answer 25

Direct Channel

Question 26

A channel that contains one or more intermediary levels

Answer 26

Indirect Channel

Question 27

pricing strategy that charges customers different prices for the same product or service; the seller places customers in groups based on certain attributes and charges each group a different price

Answer 27

Price Discrimination

Question 28

Handing over one or more of its core internal functions, such as most or all of its supply chain activities, to other (third-party) companies that are experts in those areas allows the firm to better focus on its core business

Answer 28

Outsourcing

Question 29

Promotional and distribution strategy in which the focus is on stimulating demand within the channel of distribution

Answer 29

Push Strategy

Question 30

Promotional and distribution strategy in which the focus is on stimulating demand for an offering directly from the end user

Answer 30

Pull Strategy

Question 31

strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor

Answer 31

Vertical Integration

Question 32

The number of different product items within a product category

Answer 32

Depth of Merchandise

Question 33

A retailer that uses alternative methods to reach to reach the customer that do not require a physical location

Answer 33

Non-store retailer

Question 34

The process of moving goods back to the manufacturer or intermediary after purchase

Answer 34

Reverse Logistics

Question 35

The creation of brands that have synergy between them in terms of the overall company brand

Answer 35

Family Branding

Question 36

Determination of title transfer and freight payment based on shipping location

Answer 36

FOB Destination

Question 37

A pricing tactic in which then price is not expressed in whole dollar increments

Answer 37

Odd Pricing

Question 38

The process of classifying products for sale through different channels

Answer 38

Sorting

Question 39

The number of intermediaries involved in distributing the product

Answer 39

Distribution Intensity