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PBMF Ch 11 Product, Price & Place

Terms in this set (55)

something that cannot be touched

cannot be separated from the person who performs a service

almost always unique

cannot be stored for later use

facts about a good or service

an indicator of a product's excellence

protects products until customers are ready to use them

written document that states the quality of a product with a promise to correct certain problems that might occur

a promise that a product has a certain quality or will perform in a specific way

all the goods and services that a business sells

group of closely related products within the product mix

the number of product lines a company offers

the specific model, color, or size of products in a line

the number of product items within a product line

product planning

the process of deciding which products will appeal to the target market

convenience goods

goods bought often and with little effort

usually purchased after comparing price, quality, and style in more than one store

specialty goods

unique items that consumers are willing to spend considerable time, effort, and money to buy

natural or man-made materials that become part of a manufactured product

process materials

used in product manufacturing

major equipment

large machines and other equipment used for production purposes

business services

tasks necessary to keep a business running

amount of money requested or exchanged for a product

value proposition

an explanation of the value of a certain product over others that are similar

relative worth of something to a person

established price printed in a catalog, on a price tag, or on a price list

actual price a customer pays for a product after any discounts or coupons are deducted

manufacturer's suggested retail price (MSRP)

price recommended by the manufacturer

pricing objectives

goals defined in the business and marketing plans for the overall pricing policies of the company

break-even point

point at which revenue from sales equals the costs

the amount added to the cost to determine the selling price

product is the general price at which the company expects to sell the product

psychological pricing

pricing techniques that create an image of a product and entice customers to buy

bait and switch

practice of advertising one product with the intent of persuading customers to buy a more expensive item when they arrive in the store

price discrimination

a company sells the same product to different customers at different prices based on personal characteristics of the customers

deceptive pricing

the illegal pricing of products in a way that intentionally misleads customers

predatory pricing

practice of setting very low prices to remove competition

pricing an item much lower than the current market price or the cost of acquiring the product

raising of prices on certain kinds of goods to an excessively high level during an emergency

maximum prices set by the government for certain goods and services that it thinks are being priced too high

minimum prices set by the government for certain goods and services that it thinks are being priced too low

businesses, people, and activities involved in turning raw materials into products and delivering them to end users

channel of distribution

path that goods take through the supply chain

path directly from a manufacturer to end users without using intermediaries

indirect channel

uses intermediaries to get the product from the manufacturer to the end users

businesses or people that take natural resources from the land

nonstore retailer

sells directly to consumers in ways that do not involve a physical store location

retailers that sell products through websites

multi-channel retailers

sell products through both brick-and-mortar stores and online sites

provides labor based on specialized knowledge and skills

process of separating a large quantity of goods into smaller quantities for resale

freight forwarder

company that organizes shipments

the physical movement of products through the channel of distribution

line of connected pipes that are used for carrying liquids and gases over a long distance

digital transportation

used to download books and music onto digital devices

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