Business Chapter 12

Front 1

convenience product

Back 1

a relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort

Front 2

shopping product

Back 2

an item for which buyers are willing to expend considerable effort on planning and making the purchase

Front 3

specialty product

Back 3

an item that possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable purchasing effort

Front 4

business product

Back 4

a product bought for resale, for making other products or for use in a time operations

Front 5

product

Back 5

everything one receives in exchange, including all tangible and intangible attributes and expected benefits; it may be a good, service, or an idea

Front 6

raw material

Back 6

a basic material that actually becomes part of a physical product; usually comes from mines, forests, or recycled solid waste

Front 7

process material

Back 7

a material that is used directly in the production of another product but us not readily identifiable in the finished product

Front 8

product life cycle

Back 8

a series of stages in which a products sales profit and revenue and profit increase, reach peak, and then decline

Front 9

supply

Back 9

an item that facilitates production and operations but does not become part of a finished product

Front 10

business service

Back 10

an intangible products that an organization uses in its operations

Front 11

product line

Back 11

a group of similar products that differ only in relatively minor characteristics

Front 12

product mix

Back 12

all the products a firm offers for sale

Front 13

product modification

Back 13

the process of changing one or more of a products characteristics

Front 14

line extension

Back 14

development of a new product that is closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs

Front 15

product deletion

Back 15

the elimination of one or more products from a product line

Front 16

brand

Back 16

a name, term, symbol, design, or any combination of these that identifies a seller's products as distinct from those of other sellers

Front 17

brand name

Back 17

the part of a brand that can be spoken

Front 18

brand mark

Back 18

the part of a brand that is a symbol or distinctive design

Front 19

trademark

Back 19

a brand name or brand mark that is registered with the US patent and trademark office and thus is legally protected from use by anyone except its owner

Front 20

trade name

Back 20

the complete and legal name of an organization

Front 21

manufacturer (or producer) brand

Back 21

a brand that is owned by a manufacturer

Front 22

store (or private) brand

Back 22

a brand that is owned by an individual wholesaler or retailer

Front 23

generic product (generic brand)

Back 23

a product with no brand at all

Front 24

brand loyalty

Back 24

extent to which a customer is favorable toward buying a specific brand

Front 25

brand equity

Back 25

marketing and financial value associated with a brand's strength in a market

Front 26

individual branding

Back 26

the strategy in which a firm uses a different brand for each of its products

Front 27

family branding

Back 27

the strategy in which a firm uses the same brand for all or most of its products

Front 28

brand extension

Back 28

using an existing brand to brand a new product in a different product category

Front 29

packaging

Back 29

all the activities involved in developing and providing a container with graphics for a product

Front 30

labeling

Back 30

the presentation of information on a product of its package

Front 31

express warranty

Back 31

a written explanation of the producer's responsibilities in the event that a product is found to be defective or otherwise unsatisfactory

Front 32

price

Back 32

the amount of money a seller is willing to accept in exchange for a product at a given time and under given circumstances

Front 33

price competition

Back 33

an emphasis on setting a price equal 5o or lower than competitors prices to gain sales or market share

Front 34

non price competition

Back 34

competition base on factors other than price

Front 35

product differentiation

Back 35

the process of developing and promoting differences between one's product and all similar products

Front 36

markup

Back 36

the amount a seller adds to the cost of a product to determine it's basic selling price

Front 37

breakeven quantity

Back 37

the number of units that must be sold for the total revenue (from all units sold) to equal the total cost (of all units sold)

Front 38

total revenue

Back 38

the total amount received from the sales of a product

Front 39

fixed cost

Back 39

a cost incurred no matter how many units of a product are produced or sold

Front 40

variable cost

Back 40

a cost that depends on the number of units produced

Front 41

total cost

Back 41

the sum of the fixed costs and the variable costs attributed to a product

Front 42

price skimming

Back 42

the strategy of charging the give possible price for a product during the introduction stage of its life cycle

Front 43

penetration pricing

Back 43

the strategy of setting a low price for a new product

Front 44

negotiated pricing

Back 44

establishing a final price through bargaining

Front 45

secondary market pricing

Back 45

setting one price for the primary target market and a different price for another market

Front 46

periodic discounting

Back 46

temporary reduction of prices on a patterned or systematic basis

Front 47

random discounting

Back 47

temporary reduction of prices on a unsystematic basis

Front 48

odd number pricing

Back 48

the strategy of setting prices using odd numbers that are slightly below whole dollar amounts

Front 49

multiple unit pricing

Back 49

the strategy of setting a single price for two or more units

Front 50

reference pricing

Back 50

pricing a product at a moderate level and positioning it next to a more expensive model or brand

Front 51

everyday low prices (EDLP's)

Back 51

setting a low price for products on a consistent basis

Front 52

customary pricing

Back 52

pricing on the basis of tradition

Front 53

captive pricing

Back 53

pricing the basic product in a product line low, but pricing related items at a higher level

Front 54

premium pricing

Back 54

pricing the highest quality or most versatile products higher than other models in the product line

Front 55

price lining

Back 55

the strategy of selling goods only at certain predetermined prices that reflect definite price breaks

Front 56

price leaders

Back 56

products priced below the usual markup, near or below cost

Front 57

special event pricing

Back 57

advertised sales or price cutting linked to a holiday, season or event

Front 58

comparison discounting

Back 58

setting a price at a specific level and comparing it with a higher price

Front 59

transfer pricing

Back 59

prices charged in sales between an organizations units

Front 60

discount

Back 60

a deduction from the price of an item

Front 61

Bundle pricing

Back 61

Packaging together two or more complementary products and selling them for a single price