Mkt 230 Exam 4

Front 1

intangibility

Back 1

the characteristic of a service that means customers can't see, touch, or smell good service.

Front 2

perishability

Back 2

the characteristic of a service that makes it impossible to store for later sale or consumption.

Front 3

capacity management

Back 3

the process by which organizations adjust their offerings in an attempt to match demand.

Front 4

variability

Back 4

the characteristic of a service that means that even the same service performed by the same individual for the same customer can vary.

Front 5

inseparability

Back 5

the characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service.

Front 6

service encounter

Back 6

the actual interaction between the customer and the service provider.

Front 7

disintermediation

Back 7

eliminating the interaction between customers and salespeople so as to minimize negative service encounters and reduce costs. (atm machines)

Front 8

core service

Back 8

the basic benefit of having a service performed.

Front 9

augmented services

Back 9

the core service plus additional services provided to enhance value.

Front 10

servicescape

Back 10

the actual physical facility where the service is performed, delivered, and consumed.

Front 11

search qualities

Back 11

product characteristics that the consumer can examine prior to purchase.

Front 12

SERVQUAL

Back 12

a multiple item scale used to measure service quality across dimensions of tangibles, reliability, responsiveness, assurance, and empathy.

Front 13

gap analysis

Back 13

a marketing research method that measures the difference between a customer's expectation of a service quality and what actually occurred.

Front 14

critical incident technique

Back 14

a method for measuring service quality in which marketers use customer complaints to identify critical incidents--specific face-to-face contacts between consumer and service providers that cause problems and lead to dissatisfaction.

Front 15

new dominant logic for marketing

Back 15

a reconceptualization of traditional marketing to redefine service as the central (core) deliverable and the actual physical products purveyed as comparatively incidental to the value proposition.

Front 16

pure selling approach

Back 16

an agent presents a client's qualifications to potential buyers until he finds one who is willing to act as an intermediary.

Front 17

product improvement approach

Back 17

the agent works with the client to modify certain characteristics that will increase market value

Front 18

market fulfillment approach

Back 18

the agent scans the market to identify unmet needs.

Front 19

place marketing

Back 19

marketing activities that seek to attract new businesses, residents, or visitors to a town, state, country, or some other site.

Front 20

idea marketing

Back 20

marketing activities that seek to gain market share for a concept, philosophy, belief, or issue, by using elements of the marketing mix to create or change a target market's attitude or behavior.

Front 21

prestige products

Back 21

products that have a high price and that appeal to status-conscious consumers.

Front 22

price elasticity of demand

Back 22

the percentage change in unit sales that results from a percentage change in price.

Front 23

elastic demand

Back 23

demand in which changes in price have large effects on the amount demanded.

Front 24

inelastic demand

Back 24

demand in which changes in price have little or no effect on the amount demanded.

Front 25

cross elasticity of demand

Back 25

when changes in the price of one product affect the demand for another item.

Front 26

variable costs

Back 26

the costs of production (raw and processed materials, parts, and labor) that are tied to and vary depending on the number of units produced.

Front 27

fixed costs

Back 27

cost of production that do not change with the number of units produced.

Front 28

average fixed cost

Back 28

the fixed cost per unit produced.

Front 29

total costs

Back 29

the total of the fixed costs and the variable costs for a set number of units produced.

Front 30

break even analysis

Back 30

a method for determining the number of units that a firm must produce and sell at a given price to cover all its costs.

Front 31

break even point

Back 31

the point at which the total revenue and total costs are equal and beyond which the company makes a profit; below that point, the firm will suffer a loss.

Front 32

contribution per unit

Back 32

the difference between the price the firm charges for a product and the variable costs.

Front 33

marginal analysis

Back 33

a method that uses cost and demand to identify the price that will maximize profits.

Front 34

marginal cost

Back 34

the increase in total cost that results from producing one additoinal unit of a product.

Front 35

marginal revenue

Back 35

the increase in total income or revenue that results from selling one additional unit of a product.

Front 36

cost plus pricing

Back 36

a method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling price.

Front 37

demand based pricing

Back 37

a price setting method based on estimates of demand at different prices.

Front 38

target costing

Back 38

a process in which firms identify the quality and functionality needed to satisfy customers and what price they are willing to pay before the product is designed; the product is manufactured only if the firm can control costs to meet the required price.

Front 39

yield management pricing

Back 39

a practice of charging different prices to different customers in order to manage capacity while maximizing revenues.

Front 40

price leadership

Back 40

a pricing strategy in which one firm firs sets its price and other firms in the industry follow with the same or very similar prices.

Front 41

value pricing or everyday low pricing (EDLP)

Back 41

a pricing strategy in which a firm sets prices that provide ultimate value to customers.

Front 42

skimming price

Back 42

a very high, premium price that a firm charges for its new, highly desirable product.

Front 43

penetration pricing

Back 43

a pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it.

Front 44

trial pricing

Back 44

pricing a new product low for a limited period of time in order to lower the risk for a customer.

Front 45

price bundling

Back 45

selling two or more goods or services as a single package for one price.

Front 46

captive pricing

Back 46

a pricing tactic for two items that must be used together; one item is priced very low, and the firm makes its profit on another, high-margin item essential to the operation of the first item.

Front 47

FOB origin pricing

Back 47

a pricing tactic in which the cost of transporting the product from the factory to the customer's location is the responsibility of the customer.

Front 48

FOB delivered pricing

Back 48

a pricing tactic in which the cost of loading and transporting the product to the customer is included in the selling price and is paid by the manufacturer.

Front 49

basing point pricing

Back 49

a pricing tactic in which customers pay shipping charges from set basing point locations, whether the goods are actually shipped from these points or not.

Front 50

uniform delivered pricing

Back 50

a pricing tactic in which a firm adds a standard shipping charge to the price for all customer regardless of location.

Front 51

freight absorption pricing

Back 51

a pricing tactic in which the seller absorbs the total cost of transportation.

Front 52

list price

Back 52

the price the end customer is expected to pay as determined by the manufacturer; also referred to as the suggested retail price.

Front 53

trade or functional discounts

Back 53

discounts off list price of products to members of the channel of distribution who perform various marketing functions.

Front 54

quantity discounts

Back 54

a pricing tactic of charging reduced prices for purchases of larger quantities of a product.

Front 55

dynamic pricing

Back 55

a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace.

Front 56

internal reference price

Back 56

a set price or a price range in consumers' minds that they refer to in evaluating a product's price.

Front 57

price lining

Back 57

the practice of setting a limited number of different specific prices, called price points, for items in a product line.

Front 58

bait and switch

Back 58

an illegal marketing practice in which an advertised price special is used as bait to get customers into the store with the intention of switching them to a higher priced item.

Front 59

loss leader pricing

Back 59

the pricing policy of setting prices very low or even below cost to attract customers into a store.

Front 60

unfair sales acts

Back 60

state laws that prohibit suppliers form selling products below cost to protect small businesses form larger competitors.

Front 61

price fixing

Back 61

the collaboration of two or more firms in setting prices, usually to keep prices high.

Front 62

predatory pricing

Back 62

illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business.