Business - Chapter 14
Card Set Information
Business - Chapter 14
Deciding what the company will receive in exchange for its products.
Goals that sellers hope to attain in pricing products for sale
A company's percentage of the total market saler for a specific product.
Break-even analysis - ?
An assessment of how many units must be sold at a given price before the company begins to make a profit
fixed costs/price-variable cost
Break even point
The # of units that must be sold at a given price before the company covers all of its expenses (fixed and variable)
The decision to price a new product as high as possible to earn the maximum profit on each unit sold
The decision to price a product very low to sell the most units possible and to build customer loyalty.
The practice of offering all items in certain categories at a limited number of predetermined price points. Sears may sell mattresses at 199 good 299 better 399 best - better is the most sold.
The practice of seeting prices to take advantage of the illogical reactions of consumers to certain types of products.
A form of psychological pricing in which prices are not stated in even dollar amounts.
Any price reduction offered by the seller to persuade customers to purchase a product.
The combination of distribution channels a firm selects to get the products to the end-users.
Any individual or firms other than the producer that participate in a product's distribution.
Intermediaries who sell products to other businesses, which in turn resell them to the end-users.
Intermediaries who sell produts to the end-users.
The path a products follows from the producer to the end-users.
Producer - End-users
Producer - retailer - end-users
Producer - wholesaler - retailer - end-users
distribution by Agents or Brokers
Producer - Agent/Broker - end-users.
A distribution channel in which the product travels from the producer tp the consumer without passing through any intermediaries.
An independent business person who represents a business
Independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be.
A distribution strategy in which a product is distributed in nearly every possible outlet, using many channel members.
product's distribution is limited to onlu one whole-saler or retailer in a given geographic area
A distribution strategy that falls between intensive and exclusive distribution.
Conflicts arising between the members of a distribution channel.
The channel member that is the most powerful in determining the roles and rewards of organizations involved in a given channel of distribution.
Vertical Marketing System
A system in which there is a high degree of coordination among all the units in the distribution channel so that as product moves effectively from manufacturer to consumer.
Large retail stores that offer a wide variety of high-quality items divided into specialized departments.
Large retail store that offer a variety of food and food related items divided into specialized departments.
Small retail stores that carry one line of related products.
Retail outlets that emphasize low prices as a means of attracting consumers.
Bargain retail stores that offer major items such as TV and large appliances at discount prices.
A bargain retail store in which customers place orders for items described in a catalogue.
Bargain retail store that are owner by the manufacturers whose products they sell.
Huge, membership only, combined retail-wholesale operations that sell brand-name merchandise.
Retail stores that offer high accessibility, extended hours and fast services. It tends to be more expensive than the other stores.
A type of retailing in which firms make direct contact with customers both to inform them about products and to receive sale orders.
Form of non-store retailing typified by door to door sales.
A form of non-store retailing in which customers place orders for merchandise shown in catalogues and received their order via mail.
Use of the phone to sell directly to consumers.
Internet-based distribution channel members that collect information about sellers and present it in convenient form to consumers and/or help deliver internet products to consumers.
Occurs when a website offers other web-sites a commission for referring customers.
A type of intermediary that helps internet consumers by gathering and sorting information they need to make purchases.
Nonsore retailing in which information about the seller's product and services is connected to consumer's computer, allowing customers to received information and purchase the products in the home.
Nonstore retailing that uses internet to display products and services for both retail shoppers and business customers.
A seller's website in which consumers collect information about products and buying opportunities, place sales orders, and pay for their purchases.
Collection of virtual storefronts representing diverse products.
Selling products and service by allowing customers to interact with multimedia websites using voice, graphics, animation, film clips and access to live human advice.
Selling to customers by showing products on TV that consumers can buy by telephone or mail.
Those activities needed to move a product from the manufacturer to the end-users.
: facility used to store goods for long time periods.
: facility used to store goods for short period of time pending distribution to retailers.
A warehouse owned and used by just one company
An independently owned and operated warehouses that stores the goods of many firms.
The combined use of different means of transportation.
All activities involved in completing a sales transation - from buying the product to delivering it.