Understanding Business Chapter 14 Flashcards Preview

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Flashcards in Understanding Business Chapter 14 Deck (38):
1

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.

2

Total Product Offer

Everything consumers evaluate when deciding whether to buy something. also called a value package.

3

Product Line

A group of products that are physically similar or are intended for a similar market.

4

Product Mix

The combination of product lines offered by a manufacturer.

5

Product Differentiation

The creation of real or perceived product differences.

6

Convenience Goods and Services

Products that the consumer wants to purchase frequently and with a minimum of effort.

7

Shopping Goods and Services

Those products that the consumer buys only after comparing value. quality. price. and style from a variety of sellers.

8

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.

9

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.

10

Industrial Goods

Products used in the production of other products. Sometimes called business goods or B2B goods.

11

Bundling

Grouping two or more products together and pricing them as a unit.

12

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.

13

Trademark

A brand that has exclusive legal protection for both its brand name and design.

14

Manufacturers' Brand Names

The brand names of manufacturers that distribute products nationally.

15

Dealer (Private-Label) Brands

Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead.

16

Generic Goods

Nonbranded products that usually sell at a sizable discount compared to national or private-label brands.

17

Knockoff Brands

Illegal copies of national brand-name goods.

18

Brand Equity

The value of the brand name and associated symbols.

19

Brand Loyalty

The degree to which customers are satisfied. like the brand. and are committed to further purchases.

20

Brand Awareness

How quickly or easily a given brand name comes to mind when a product category is mentioned.

21

Brand Association

The linking of a brand to other favorable images.

22

Brand Manager

A manager who has direct responsibility for one brand or one product line. called a product manager in some firms.

23

Product Screening

A process designed to reduce the number of new product ideas being worked on at any one time.

24

Product Analysis

Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.

25

Concept Testing

Taking a product idea to consumers to test their reactions.

26

Commercialization

Promoting a product to distributors and retailers to get wide distribution. and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.

27

Product Life Cycle

A theoretical model of what happens to sales and profits for a product class over time. the four stages of the cycle are introduction. growth. maturity. and decline.

28

Target Costing

Designing a product so that it satisfies customers and meets the profit margins desired by the firm.

29

Competition-Based Pricing

A pricing strategy based on what all the other competitors are doing. The price can be set at. above. or below competitors' prices.

30

Price Leadership

The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow.

31

Break-Even Analysis

The process used to determine profitability at various levels of sales.

32

Total Fixed Costs

All the expenses that remain the same no matter how many products are made or sold.

33

Variable Costs

Costs that change according to the level of production.

34

Skimming Price Strategy

Strategy in which a new product is priced high to make optimum profit while there's little competition.

35

Penetration Strategy

Strategy in which a product is priced low to attract many customers and discourage competition.

36

Everyday Low Pricing (EDLP)

Setting prices lower than competitors and then not having any special sales.

37

High-Low Pricing Strategy

Setting prices that are higher than EDLP stores. but having many special sales where the prices are lower than competitors'.

38

Psychological Pricing

Pricing goods and services at price points that make the product appear less expensive than it is.