Exam 3

Card Set Information

Exam 3
2013-07-25 21:07:20
Chapter 12

Terms and Definitions
Show Answers:

  1. accessory equipment
    standardized equipment used in a firm’s production or office activities
  2. brand
    a name, term, symbol, design, or any combination of these that identifies a seller’s products as distinct from those of other sellers
  3. brand equity
    marketing and financial value associated with a brand’s strength in a market
  4. brand extension
    using an existing brand to brand a new product in a different product category
  5. brand loyalty
    extent to which a customer is favorable toward buying a specific brand
  6. brand mark
    the part of a brand that is a symbol or distinctive design
  7. brand name
    the part of a brand that can be spoken
  8. 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)
  9. bundle pricing
    packaging together two or more complementary products and selling them for a single price
  10. business product
    a product bought for resale, for making other products, or for use in a firm’s operations
  11. business service
    an intangible product that an organization uses in its operations
  12. captive pricing
    pricing the basic product in a product line low, but pricing related items at a higher level
  13. comparison discounting
    setting a price at a specific level and comparing it with a higher price
  14. component part
    an item that becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly
  15. consumer product
    a product purchased to satisfy personal and family needs
  16. convenience product
    a relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort
  17. customary pricing
    pricing on the basis of tradition
  18. demand
    the quantity of a product that buyers are willing to purchase at each of various prices
  19. discount
    a deduction from the price of an item
  20. everyday low prices (EDLPs)
    setting a low price for products on a consistent basis
  21. express warranty
    a written explanation of the producer’s responsibilities in the event that a product is found to be defective or otherwise unsatisfactory
  22. family branding
    the strategy in which a firm uses the same brand for all or most of its products
  23. fixed cost
    a cost incurred no matter how many units of a product are produced or sold
  24. generic product (or brand)
    a product with no brand at all
  25. individual branding
    the strategy in which a firm uses a different brand for each of its products
  26. labeling
    the presentation of information on a product or its package
  27. 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
  28. major equipment
    large tools and machines used for production purposes
  29. manufacturer (or producer) brand
    a brand that is owned by a manufacturer
  30. markup
    the amount a seller adds to the cost of a product to determine its basic selling price
  31. multiple-unit pricing
    the strategy of setting a single price for two or more units
  32. negotiated pricing
    establishing a final price through bargaining
  33. non-price competition
    competition based on factors other than price
  34. odd-number pricing
    the strategy of setting prices using odd numbers that are slightly below whole-dollar amounts
  35. packaging
    all the activities involved in developing and providing a container with graphics for a product
  36. penetration pricing
    the strategy of setting a low price for a new product
  37. periodic discounting
    temporary reduction of prices on a patterned or systematic basis
  38. premium pricing
    pricing the highest-quality or most-versatile products higher than other models in the product line
  39. price
    the amount of money a seller is willing to accept in exchange for a product at a given time and under given circumstances
  40. price competition
    an emphasis on setting a price equal to or lower than competitors’ prices to gain sales or market share
  41. price leaders
    products priced below the usual markup, near cost, or below cost
  42. price lining
    the strategy of selling goods only at certain predetermined prices that reflect definite price breaks
  43. price skimming
    the strategy of charging the highest possible price for a product during the introduction stage of its life-cycle
  44. process material
    a material that is used directly in the production of another product but is not readily identifiable in the finished product
  45. product
    everything one receives in an exchange, including all tangible and intangible attributes and expected benefits; it may be a good, a service, or an idea
  46. product deletion
    the elimination of one or more products from a product line
  47. product differentiation
    the process of developing and promoting differences between one’s product and all similar products
  48. product life-cycle
    a series of stages in which a product’s sales revenue and profit increase, reach a peak, and then decline
  49. product line
    a group of similar products that differ only in relatively minor characteristics
  50. product mix
    all the products a firm offers for sale
  51. product modification
    the process of changing one or more of a product’s characteristics
  52. random discounting
    temporary reduction of prices on an unsystematic basis
  53. raw material
    a basic material that actually becomes part of a physical product; usually comes from mines, forests, oceans, or recycled solid wastes
  54. reference pricing
    pricing a product at a moderate level and positioning it next to a more expensive model or brand
  55. secondary-market pricing
    setting one price for the primary target market and a different price for another market
  56. shopping product
    an item for which buyers are willing to expend considerable effort on planning and making the purchase
  57. special-event pricing
    advertised sales or price cutting linked to a holiday, season, or event
  58. specialty product
    an item that possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable purchasing effort
  59. store (or private) brand
    a brand that is owned by an individual wholesaler or retailer
  60. supply
    the quantity of a product that producers are willing to sell at each of various prices
  61. total cost
    the sum of the fixed costs and the variable costs attributed to a product
  62. total revenue
    the total amount received from sales of a product
  63. trade name
    the complete and legal name of an organization
  64. trademark
    a brand name or brand mark that is registered with the U.S. Patent and Trademark Office and thus is legally protected from use by anyone except its owner
  65. transfer pricing
    prices charged in sales between an organization’s units
  66. variable cost
    a cost that depends on the number of units produced