Introduction to Business Chapter 14 Developing and Pricing Goods and Services

Product of life cycle four stages

1. introduction 2. growth 3. maturity 4. decline

The acronym used to describe industrial goods sold from one business to another is ___.

B2B

True or False: Companies can use packaging to change and improve their product.

True

True or False: Value means that customers perceive a product as a good quality at a fair price.

True

Business to business, or B2B, is another name for:

an industrial good

A ___ is a name, symbol, or design that identifies the goods or services of one seller or group of sellers.

brand

Industrial goods are sometimes called ___ goods.

business

Product differentiation is used to ___.

call attention to product differences that appeal to the preferences of the target market

The best way to ___ is to design and promote products that consumers perceive as having greater value than the competition.

compete

Products in the same product line will tend to face similar ___.

competition

Cost-based

costs of production plus a margin of profit to determine price

The best way to compete is to ___.

design and promote products that have greater value for consumers

Demand-based (target costing)

estimate the price people will pay and design a product that will satisfy customers and meet profit margins

products in the same product line usually ___.

face similar competition

A ___, symbol, or design that identifies the goods or services of one seller or group of sellers is called a brand.

name

specialty

no substitute will do orthopedic surgeons

Changes or improvements to a product can sometimes be accomplished through ___.

packaging

Cost-based, demand-based, and competition-based are three major approaches to ___ strategy.

pricing

Cost-based, demand-based, and competition-based are considered three major approaches to:

pricing strategy

Many companies have used packaging to change and improve their basic ___.

product

A firm offering groups of goods and services intended for a similar market is offering a ___ ___ instead of focusing on just one good or service.

product line

A group of products that are physically similar or are intended for a similar market are referred to as a ___ ___.

product line

The combination of product lines offered by a manufacture is called the ___ ___.

product mix

When a firm offers more than one product line, it i said to be offering a ___ ___.

product mix

The creation of real or perceived product differences is called ___.

product differentiation

convenience

purchased often with little thought milk

Competition-based

set the price at, above, or below the competition

shopping

time spent on comparison to substitutes washing machines

Everything that consumers evaluate when deciding whether to buy something is referred to as the ___ ___ ___.

total product offer

A brand that has exclusive legal protection for both brand name and its design is called a ___.

trademark

unsought

unaware of product or not looking for it burial services

Good quality at a fair price is the definition of ___.

value

When customers calculate ___, they look at the benefits and then subtract the costs to see if the benefits exceed the costs.

value