Business Chapter 14 Quiz
Trade Mark
A brand that has been given exclusive legal protection for both the brand name and the pictorial design.
Product Line
A group of products that are physically similar or are intended for a similar market.
Brand
A name, symbol, or design that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.
Total Product Offer
Consists of everything that consumers evaluate when deciding whether to buy something; also called a value package.
Shopping Goods and Services
Consumers only buy after comparing value, quality, price, and style and from a variety of sellers.
Values
Consumers want a good quality product a fair price, so they calculate the values of a product by looking at the benefits, and subtracting the costs to see if benefits exceed the costs.
Variable Costs
Costs known as this change according to the level of production.
Brand Equity
Includes awareness, loyalty, perceived quality, images and emotions people associate with a brand name.
Product Analysis
Involves making cost estimates and sales forecasts to get a feeling for the profitability of new product ideas.
Generic Goods
Non branded products that usually sell as sizable discounts compared to national or private label brands.
Psychological Pricing
Price points that make the product appear less expensive (ex. $19.99)
Unsought Goods and Services
Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve and unexpected problem.
Dealer Brands
Products that don't carry the manufacturer's name , but carry a distributer or retailer's name instead.
Connivence Goods and Services
Products that the consumer wants to purchase frequently with a minimum of effort.
High-low Price Strategy
Strategy that involves setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors.
Manufacturers Brand Name
The brand names of manufactures that distribute a product nationally.
Brand Loyalty
The degree to which customers are satisfied, like the brand, and are committed to further purchases.
Brand Association
The linking of a brand to other favorable images.
Penetration Strategy
The method of pricing known as this. When a product is priced too low to attract many customers and discourage competitors.
Break-even Analysis
The process used to determine profitability at various levels of sale.
Brand Manager
This person has direct responsibility for one brand or one product line; called a product manager in some firms.
Concept Testing
This process calls for taking a product idea to consumers to test their reactions.
Industrial Goods
Used in the production of other products and are sometimes called business goods or B2B goods.
Competition Based Pricing
a pricing strategy based on what all the other competitors are doing. Price can be set at, above, or below competitors prices
Total Fixed Cost
all the expenses that remain the same no matter how many products are sold
Product Screening
designed to reduce the number of new-product ideas being worked on at any one time
Price Leadership
one or more dominate firms set the pricing practices that all competitors in an industry follow
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
Everyday Low Pricing
setting prices lower than competitors and then not having any special sales
Product Differentiation
the creation of real or perceived product differences
Product Line
used to describe the combination of product lines offered by a manufacturer
Skimming Price Strategy
A strategy where one a new product is priced high to make optimum profit while there is little competition.
Product Life Cycle
A theoretical model that shows what happens to sales and profits for a product class over time; stages are introduction, growth, maturity and decline.
Target Costing
Designing a product so that it satisfies customers and meets the profit margins desired by the firm.
Bundling
Grouping two or more products together pricing them as a unit.
Brand Awareness
How quickly or easily a given brand name comes to mind when a product category is mentioned.
Knock Off Brands
Illegal copies of a national brand-names goods
Speciality Goods and Services
Products with unique characteristics and brand equity are perceived as having no reasonable substitute. The consumer puts forth a special effort to purchase these products.
