test 2 Flashcards
(22 cards)
product
good or service (both favorable and unfavorable) that a
person receives in some type of exchange
Business Products
Products used to manufacture other goods
and services or to facilitate an organization’s operations
Consumer Products
Products bought to satisfy an individual’s
personal needs
Unsought Products
A product unknown to the potential buyer or a
known product that the buyer does not actively seek
Convenience Product
An inexpensive product that merits little
shopping effort
Shopping Products
A product that requires a greater level of
involvement, is usually more expensive, and found in fewer stores
Specialty Products
particular item for which consumers search
extensively and are reluctant to accept a substitute or
competitor’s products
Product Item
A specific version of a product that can be
designated as a distinct offering among an organization’s
products
Product Line
A group of closely-related product items
Product Mix -
All product lines that an organization sells
Brand
A name, term, symbol, design, or combination of these
elements that evokes meaning and differentiates an organization
Greenwashing
Attempting to give the impression of
environmental friendliness whether or not it is
environmentally friendly
Price Skimming
Setting price points high during (initially) and then lowering
them (gradually) as competitors appear in the market
Maximizes profits early
Psychology Pricing
Increasing demand by creating an illusion of enhanced value for
the consumer
199 versus 200, number of syllables, and whole numbers
Bundle Pricing
Price points are lower if different products are bought together
Cheaper than purchasing products individually
Ideation
The process of generating, developing, and communicating
concepts that are abstract, auditory, visual, and/or definitive
Creativity
Generating something new and “valuable”
Change
An incremental adjustment to a product or process to enhance
efficiency or effectiveness
Innovation
The introduction and adoption of a creative idea that “changes” the
market or society – It must be sustainable over time
Contribution Margin –
The portion of sales revenue that is not
consumed by variable costs and so it contributes to the
coverage of the fixed costs
Margin of Safety
The reduction in sales (in units) that can occur
before the breakeven point of a firm is reached
Marginal Cost
he cost of producing one additional unit of a good
or service
