Chapter 14 Flashcards
(24 cards)
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 of the benefits exceed the cost. MOW: is the product worth the money.Ex: Someone might buy a Hollister hoodie that costs $50 because it is thick, warm and comfortable to wear and they find $50 to be worth it.
Total product offer
Everything that consumer evaluate when deciding whether to buy something; also called a value packageMOW: everything a product has to offer for its price.Ex: When purchasing a cell phone people look at the battery life, memory capacity and quality and compare it to others and choose the one that has more to offer.
Product line
A group of products that are physically similar or are intended for a similar market. MOW: products that are alike and intended for a similar marketEx: A ball company can have a variety of colors of balls and may have some that are for certain purposes and bounce higher but they are all intended to be sold in a similar market and for children.
Product mix
The combination of product lines offered by a manufacturer. MOW: combining different product lines that are similar EX: a ball company might combine their handball product line with their football line.
Product differentiation
The creation of real or perceived product differences. MOW: products that essentially do the same thing but people believe one is better than the other because of the quality or brandEx: an apple cell phone essentially does everything an android can, yet people are willing to pay more money for an iPhone.
Convenience goods and services
Products that the consumer wants to purchase frequently and with a minimum of effort. MOW: something a consumer purchases without having to think too much about it.Ex: gum,
Shopping goods and services.
Those products that the consumer buys only after comparing value, quality, price and style from a variety of sellers. MOW: comparing products with one another and deciding which one is worth the price.Ex: when shopping for a refrigerator one may look at he price,amount of energy, and style and compare different ones with each other to decide which one is worth the price.
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. MOW: someone tries harder so that they may purchase something that they find has more value Ex: someone might save up their money for months to purchase a Mac book because its is an apple computer and believed to be much more sophisticated and better than other laptops. Ex:
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. MOW: something that we don’t think about ourchasingnuntilnsomething actually happens and your realize you need itEx: you may not buy raid because there are currently no roaches in your home but once they come out you realize you need some raid.
Industrial goods
Products used in the production of other products. Sometimes called business goods or b2b goods. MOW: materialEx: to build a dog house you need nails, wood, etc.
Brand
A name, symbol, or design for 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. MOW: a logo that distinguishes one product and service from another.Ex: apple has the apple symbol to distinguish its products from a Samsung phone.
Trademark
A brand that has exclusive legal protection for both its brand name and design. MOW: a logo that is OWNED by the company so I that others may not use it in their productsEx: Nike may trademark the Nike symbol so that let’s say Adidas may not use it on a shoe they’re selling,
Manufacturers brand
The brand names of manufacturers that distribute products nationally. MOW: the manufactures logoEx: Nestlé products have the little nestle logo on their nesquick, coffee etc.
Dealer (private label) brands
Products that don’t carry the manufacturers name but carry a distributor or retailers name instead. MOW: products that do not have the manufactures name and contain the name of the retailer insteadEx: CVS brand detergent soap.
Generic goods
No branded products that usually sell at a size able discount compared to national or private label brands. MOW: cheaper versions of a product Ex: the generic product of Sara Lee bread may be Springfield bread
Knock off brands
Illegal copies of national brand name goods. MOW: fakesEx: Foach, fucci
Brand loyalty,
The degree to which customers are satisfied, like the brand , and are committed to further purchases. MOW: remaining faithful to a company so you purchase only from themEx: apple fans
Brand awareness
How quickly or easily a given brand name comes to mind when a product category is mentioned. MOW: the first product company that comes to mind when thinking about a certain productEx: shoes: Nike, cellphones: iPhone,
Brand association
The linking of a brand to other favorable images. MOW: associating a product with something else Ex: Nike: athletes
Brand manager
A manager who has direct responsibility for one brand or one product line; called a product manager in some firms.MOW: a person who manages the brand of a product line Ex: may be in charge of the Nike logo to make sure no one else is suing and that it is being effective
Break even analysis
The process used to determine profitability at various levels of sales. MOW: looking at different scenarios or possibilities that may produce differently levels of salesEx: companies may look at how much hey would make if they sold their product at a certain price at a certain place.
Skimming price strategy
Strategy in which a new product is priced high to make optimum profit while there is little competition MOW: opportunity to make larger profits since no other product similar has risenEx: in 2008 the iPhone was very pricey because there were no other phones like that.
High low pricing strategy
Setting prices that are higher than edlp stores but having many special sales where the prices are lower than competitors. MOW: items appear cheaper because there is constantly a saleEx: jeans may cost $59 but because there is a sale they cost $30
Psychological pricing
Pricing goods and services at price points that make the product appear less expensive than it is. MOW: making people believe that the product is not expensive Ex: 19.99
