Key Terms Quiz

Elasticity

From economics, the idea is that the market's demand for a product or service is sensitive to changes in its price.

wholesaler

An intermediary business that buys (typically in large quantities) and sells (typically in smaller quantities) to businesses rather than consumers.

Focus Group

A form of data gathering from a small group led by a moderator.

Markup pricing

A price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit.

Inseparability

A quality of a service in which the service being done cannot be disconnected from the provider of the service.

Co Marketing

A type of media partnership where two products jointly pay to advertise together. Usually this is when customers use the two products together, like chips and salsa.

Primary research

An approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation.

tangibility

An item's capability of being touched, seen, tasted, or felt.

cognative dissonance

Doubt that occurs after a purchase has been made. An inconsistency between experience and belief.

Promotional mix

How much of each message conveyance you will use to sell your product as well as your objective in using each one.

4 P's of Marketing

Product, Promotion, Price, Placement The four major components of a marketing effort—product, price, promotion, and placement. Sometimes called the marketing mix.

Up-selling

Selling additional accessories or higher-quality versions of the product at a higher cost.

Direct marketing

Selling your goods or services to consumers without intermediaries, typically to select customer groups and typically with tracking of the results.

Skimming

Setting a price at the highest level the market will bear, usually because there is no competition at the time.

Brand

The name a firm puts on itself and its products to differentiate them from competitors' offerings.

Just in time inventory (JIT inventory)

The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer.

Letter of credit

a document issued by a bank that guarantees a buyers payment for a specified period of time upon compliance with specified terms.