Words 1.3

Question 1

Price

Answer 1

Amount paid by a customer for a product /service

Question 2

Pricing strategy

Answer 2

The plan for setting a products price for the medium to long term

Question 3

Loss leader

Answer 3

Pricing a product below cost in order to attract further profitable business

Question 4

Price sensitive

Answer 4

When demand for a product reacts sharply to a price change ie demand is highly price elastic

Question 5

Pricing tactics

Answer 5

Short term pricing responses to opportunities or threats

Question 6

Promotional hook

Answer 6

Promotional techniques to evoke customers interest

Question 7

Promotional reach

Answer 7

Maximising the number of people exposed to media in a given period of time

Question 8

Emotional branding

Answer 8

Practice of using emotions of a consumer to build a brand

Question 9

Generic brand

Answer 9

A brand which become the name of a product eg hoover

Question 10

Merchandising

Answer 10

Methods used at point of sale

Question 11

Cost plus pricing

Answer 11

Cost based strategy calculated as the cost to produce a product plus a % mark up

Question 12

Penetration pricing

Answer 12

Price set low to gain market share

Question 13

Skimming pricing

Answer 13

Initially set high price whilst product has new appeal

Question 14

Competitive pricing

Answer 14

Price set at market level

Question 15

Psychological pricing

Answer 15

Using the customer’s psychological price barrier eg £2.99 instead of £3

Question 16

Predatory pricing

Answer 16

Setting low price forcing rivals out of business

Question 17

Sustainability

Answer 17

An ability or capacity of something to be maintained or to sustain itself. It’s about taking what we need to live now without jeopardising the potential for people in the future to meet their needs. If an activity is said to be sustainable it should be able to continue forever

Question 18

Ethical sourcing

Answer 18

Using materials components and services from suppliers that respect the environment, treat their workforce well and generally trade with integrity eg fair trade

Question 19

Ergonomics

Answer 19

Study of how people interact with their environment and the equipment they use

Question 20

Waste minimisation

Answer 20

Reducing the quantity of resources that are discarded in the production process

Question 21

Above the line promotion

Answer 21

Advertising in media often more expensive either informative, persuasive or reassuring advertising

Question 22

Below the line promotion

Answer 22

Any form of promotion that does not involve advertising/using the media

Question 23

Viral marketing

Answer 23

Any strategy that encourages people to pass on messages to others about a product or business, usually electronically

Question 24

Distribution channel

Answer 24

The route taken by a product from the producer to customer

Question 25

Distribution

Answer 25

Delivery of good from producer to consumer