Chapter 12: Developing and Pricing Products
____________ items are expensive, long-lasting, infrequently purchased industrial products.
Capital.
What is the third step of the seven-step development process?
Concept testing .
____________, such as milk, are inexpensive and are purchased often and with little input, time, or effort.
Convenience goods.
Which of the following is the definition of fixed cost ?
Cost that is incurred regardless of the quantity of a product produced and sold.
___________ considers the firm's desire to make a profit and its need to cover operating costs.
Cost-oriented pricing.
__________ are an industrial product. They are goods and services that are consumed within a year by organizations producing other goods or supplying other services .
Expense items.
Prototype development is the ______ step of the seven-step development process.
Fifth.
What is it called when companies or personalities sell the rights to put their names on products?
Licensed brands.
_________ is the amount added to an item's purchase cost to sell it at a profit.
Markup.
A psychological pricing tactic based on the premise that customers perfer prices not stated in even dollar amounts is best defined as ____________.
Odd-even pricing.
___________ is setting an initially low price to establish a new product in the market .
Penetration pricing
____________ is modifying an existing product for greater appeal in different countries.
Product adaptation.
____________ is marketing an existing product globally instead of just domestically.
Product extension.
__________ is a promotional tactic for brand exposure in which characters in television, film, music, magazines, or video games use a real product with its brand visible to viewers.
Product placement.
Reintroduction is ___________.
Reviewing an obsolete or older product for new markets.
What is the definition of price lining?
Setting a limited of prices for certain categories of products.
Which of the following best defines price skimming?
Setting an initially high price to cover new product costs and generate a profit.
____________, such as appliances, are somewhat expensive and not purchased too often. Consumers often compare brands, sometimes in different stores and via Internet searches.
Shopping goods.
Which of the following is a consumer product category described as follows: Consumers usually decide precisely what they want and will accept no substitutes. They often go from source to source, sometimes spending a great deal of money and time to get a specific product?
Specialty goods
Which of the following is the definition of the growth stage in the product life cycle?
When a new product attracts enough customers, sales start to climb rapidly and marketers lower the price slightly and continue promotion expenditures to increase sales.