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2012-04-04 15:16:58

key terms from chapter fourteen - Nickels, W.G., 2010. Understanding Business. McGraw-Hill Companies, Inc: New York. ed9, p. 372-399.
Show Answers:

  1. Define: value
    good quality at a fair price; when consumers calculate the value of a product, they look at the benefits and then subtract he cost to see if the benefits exceed the costs (p. 374)
  2. Define: total product offer
    everything that consumers evaluate when deciding whether to buy something; also called a value package (p. 375)
  3. Define: product line
    a group of products that are physically similar or are intended for a similar market (p. 377)
  4. Define: product mix
    the combination of product lines offered by a manufacturer (p. 377)
  5. Define: product differentiation
    the creation of real or perceived product differences (p. 378)
  6. Define: convenience goods and services
    products that the consumer wants to purchase frequently and with a minimum of effort (p. 378)
  7. Define: shopping goods and services
    those products that the consumer buys only after comparing value, quality, price, and styl from a variety of seller (p. 378)
  8. Define: specialty goods and services
    consumer products with unique characteristics and brand identity; because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them (p. 379)
  9. Define: unsought goods and services
    products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem (p. 379)
  10. Define: industrial goods
    products used in the production of other products; sometimes called business goods or B2B goods (p. 380)
  11. Define: bundling
    grouping two or more products together and pricing them as a unit (p. 382)
  12. Define: brand
    a name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors (p. 382)
  13. Define: trademark
    a brand that has exclusive legal protection for both its brand name and its design (p. 382)
  14. Define: manufacturers' brand names
    the brand names of manufacturers that distribute products nationally (p. 383)
  15. Define: dealer (private-label) brands
    products that don't carry the manufacturer's name but carry a distributor or retailer's name instead (p. 383)
  16. Define: generic goods
    nonbranded products that usually sell a sizable discount compared to national or private-label brands (p. 383)
  17. Define: knockoff brand
    illegal copies of national brand-nam goods (p. 383)
  18. Define: brand equity
    the value of the brand name and associated symbols (p. 384)
  19. Define: brand loyalty
    the degree to which customers are satisfied, like the brand, and are committed to further purchases (p. 384)
  20. Define: brand awareness
    how quickly or easily a given brand name comes to mind when a product category is mentioned (p. 384)
  21. Define: brand association
    the linking of a brand to other favorable images (p. 385)
  22. Define: brand manager
    a manager who has direct responsibility for one brand or one product line; called a product manager in some firms (p. 385)
  23. Define: product screening
    a process designed to reduce the number of new-product ideas being worked on at any one time(p. 386)
  24. Define: product analysis
    making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas (p. 387)
  25. Define: concept testing
    taking a product idea to consumers to test their reactions (p. 387)
  26. Define: commercialization
    promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers (p. 387)
  27. Define: product life cycle
    a theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline (p. 388)
  28. Define: target costing
    designing a product so that it satisfies customers and meets the profit margins desired by the firm (p. 391)
  29. Define: competition-based pricing
    a pricing strategy based on what all other competitors are doing; the price can be set at, above, or below competitors' prices (p. 392)
  30. Define: price leadership
    the strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow (p. 392)
  31. Define: breaking-even analysis
    the process used to determine profitability at various levels of sales (p. 393)
  32. Define: total fixed costs
    all the expenses that remain the same no matter how many products are made or sold (p. 393)
  33. Define: variable costs
    costs that change according to the level of production (p. 393)
  34. Define: skimming price strategy
    strategy in which a new product is priced high to make optimum profit while there's little competition (p. 393)
  35. Define: penetration strategy
    strategy in which a product is priced low to attract many customers and discourage competition (p. 393)
  36. Define: everyday low pricing (EDLP)
    setting prices lower than competitors and then not having any special sales (p. 393)
  37. Define: high-low pricing strategy
    setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors' (p. 393)
  38. Define: psychological pricing
    pricing goods and services at price points that make the product appear less expensive than it is (p. 394)