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69 terms

Business Foundation chapter 13

STUDY
PLAY
Product
everything one receives in an exchange, including all tangible and intangible attributes and expected benefits; it may be a good, service, or idea.
Consumer product
a product purchased to satisfy personal and family needs.
Business product
a product bought for resale, for making other products, or for use in a firm's operations.
Convenience product
a relatively inexpensive frequently purchased item for which buyers want to exert only minimal effort.
Shopping product
an item for which buyers are willing to expend considerable effort on planning and making the purchase
Product
everything one receives in an exchange, including all tangible and intangible attributes and expected benefits; it may be a good, service, or idea.
Consumer product
a product purchased to satisfy personal and family needs.
Business product
a product bought for resale, for making other products, or for use in a firm's operations.
Convenience product
a relatively inexpensive frequently purchased item for which buyers want to exert only minimal effort.
Shopping product
an item for which buyers are willing to expend considerable effort on planning and making the purchase
Specialty product
an item that possesses one or more unique characteristics for which a group of buyers is willing to expand considerable purchasing effort.
Raw material
a basic material that actually becomes part of a physical product usually comes from mines, forests, oceans or recycled solid purposes.
Major equipment
large tools and machines used for production purposes
Accessory equipment
standardized equipment used in a firm's production or office activities
Component part
an item that becomes part of a physical product and is either a finished item ready for assembly or a product that need little processing before assembly
Process material
a material that is used directly in the production of another product but is not readily identifiable in the finished product.
Supply
an item that facilitates productions and operations but does not become part of a finished product
Business services
an intangible product that an organization uses in its operations.
Product life cycle
a series of stages in which a product's sales revenue and profit increase, reach a peak, and then decline
Product line
a group of similar products that differ only in relatively minor characteristics
Product mix
all the products a firm offers for sale
Product modification
the process of changing one or more of a product's characteristics.
Line extension
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
Product deletion
the elimination of one or more products from a product line.
Brand
a name, term, symbol, design, or any combination of these that identifies a seller's products as distinct from those of other sellers.
Brand name
the part of a brand that can be spoken
Brand mark
the part of a brand that is a symbol or distinctive design
Trademark
a brand name of brand mark that is registered with U.S Patent and Trademark office and this is legally protected from use by anyone except its owner
Trade name
the complete and legal name of an organization
Manufacturer brand
a brand that is owned by a manufacturer
Store brand
a brand that is owned by an individual wholesaler or retailer
Generic product
a product with no brand at all
Brand loyalty
extent to which a customer is favorable toward buying a specific brand>
Brand equity
marketing and financial value associated with a brand's strength in a market.
Individual branding
the strategy in which a firm uses a different brand for each of its products.
Family branding
the strategy in which a firm uses the same brand for all or most of its product.
Brand extension
using an existing brand to brand a new product in a different product category.
Packaging
all the activities involved in developing and providing a container with graphics for a product.
Labeling
the presentation of information on a product or its package
Express warranty
a written explanation of the responsibilities of the producer in the event that a product is found to be defective or otherwise unsatisfactory.
Price
the amount of money a seller is willing to accept in exchange for a product at given time and under given circumstances.
Price competition
an emphasis on setting a price equal to or lower than competitors price to gain sales or market share
Product differentiation
the process of developing and promoting differences between one's product and all similar products
Markup
the amount a seller adds to the cost of a product to determine its basic selling price
Breakeven quantity
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)
Total revenue
the total amount received from sales of a product.
Fixed cost
a cost incurred no matter how many units of a product are produced or sold
Variable cost
a cost that depends on the number of units produced
Total cost
the sum of the fixed costs and the variable costs attributable to a product.
Price skimming
the strategy of charging the highest possible price for a product during the introduction stage of its life cycle
Penetration pricing
the strategy of setting a low price for a new product
Negotiated pricing
establishing a final price through bargaining
Secondary-market pricing
setting one price for the primary target market and a different price for another market
Periodic discounting
temporary reduction of price on a patterned or systematic basis
Random discounting
temporary reduction of prices on an unsystematic basis
Odd-number pricing
the strategy of setting prices using odd numbers that are slightly below whole dollar amounts
Multiple-unit pricing
the strategy of setting a single price for two or more units
Reference pricing
pricing a product at a moderate level and positioning it next to a more expensive model or brand
Bundle pricing
packaging together two or more complementary products and selling them for a single price
Everyday low prices
setting a low price for products on a consistent basis
Customary pricing
pricing on the basis of tradition
Captive pricing
pricing the basic product in a product line low, but pricing related items at a higher level
Premium pricing
pricing the highest-quality or most-versatile products higher than other models in the product line
Price lining
the strategy of selling goods only at certain predetermined prices that reflect definite price breaks
Price dealer
products priced below the usual markup, near cost, or below cost
Special-event pricing
advertised sales or price cutting linked to a holiday, season, or event
Comparison discounting
setting a price at a specific level and comparing it with a higher price
Transfer pricing
prices charged in sales between an organization's units
Discount
a deduction from the price of an item.