Business Environment Chapter 14

Front 1

Value

Back 1

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 cost.

Front 2

Distributed Product Development

Back 2

Handing off various parts of your innovation process often to companies.

Front 3

Total Product Offer

Back 3

Everything that consumers evaluate when deciding whether to buy something; also called value package

Front 4

Product Line

Back 4

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

Front 5

Product Mix

Back 5

The combination of product lines offered by a manufacturer.

Front 6

Product Differentiation

Back 6

The creation of real or perceived product differences.

Front 7

Convenience goods and services

Back 7

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

Front 8

Shopping goods and services

Back 8

Those products that the consumers buy is only after comparing value, quality price, and style from a variety of sellers.

Front 9

Specialty goods and services

Back 9

Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute the customer put forth a special effort to purchase them.

Front 10

Unsought goods and services

Back 10

Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem.

Front 11

Industrial goods

Back 11

Products used in the production of other products.

Front 12

Bundling

Back 12

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

Front 13

Brand

Back 13

A name, symbol, or design that identifies the goods or services of one seller or group of sellers that distinguishes them from the goods and services of competitors.

Front 14

Trademark

Back 14

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

Front 15

Manufacturers Brands

Back 15

The brand names of manufacturers that distribute products nationally.

Front 16

Dealer Brands

Back 16

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

Front 17

Generic Goods

Back 17

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

Front 18

Knock-off Brands

Back 18

Illegal copies of national brand name goods.

Front 19

Brand Equity

Back 19

The value of the brand name and associated symbols.

Front 20

Brand Loyalty

Back 20

The degree to which customers are satisfied, like the brand, and are committed to for other purchases.

Front 21

Brand Awareness

Back 21

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

Front 22

Brand Association

Back 22

The linking of a brand to other favorable images.

Front 23

Brand Manager

Back 23

A manager who has direct responsibility for one brand or one product line.

Front 24

Product Screening

Back 24

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

Front 25

Product Analysis

Back 25

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

Front 26

Concept Testing

Back 26

Taking a product idea to Consumers to test their reactions.

Front 27

Commercialization

Back 27

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

Front 28

Product Life Cycle

Back 28

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

Front 29

Test Costing

Back 29

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

Front 30

Competition-based Pricing

Back 30

A pricing strategy based on what all other competitors are doing.

Front 31

Price Leadership

Back 31

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

Front 32

Break-Even Analysis

Back 32

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

Front 33

Total Fixed Cost

Back 33

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

Front 34

Variable Costs

Back 34

Costs that change according to the level of production.

Front 35

Skimming Price Strategy

Back 35

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

Front 36

Penetration Strategy

Back 36

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

Front 37

Everyday Low Pricing

Back 37

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

Front 38

High-Low Pricing Strategy

Back 38

Setting prices that are higher than EDLP stores, but having any special sales where prices are lower than competitors prices.

Front 39

Psychological Pricing

Back 39

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