Ch 12: Developing & Pricing Products

Product placement is ___________.

A promotional tactic for brand exposure in which characters in television, film, music, magazines, or video games use real product with its brand visible to viewers

What is the definition of odd-even pricing?

A psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amounts

_________ items are expensive, long lasting, infrequently purchased industrial products.

Capital

Cost-oriented pricing _____________.

Considers the firm's desire to make a profit and its need to cover operating costs

_____________, 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

Prototype development is the ___________ step of the seven-step development process.

Fifth

Expense items are _____________.

Goods & services that are consumed within a year by organizations producing other goods or supplying other services

Which of the product life cycle is described as follows: when new product attracts enough customers, sales start to climb rapidly and marketers lower the price slightly and continue promotion expenditures to increase sales?

Growth

Product extension is _________.

Marketing an existing product globally instead of just domestically

What is the term for setting an initially high price to cover new product costs and generate a profit?

Price skimming

______________ is modifying an existing product for greater appeal in different countries.

Product adaptation

Reintroduction is ______________.

Reviewing an obsolete or older product for new markets

What is the definition of price lining?

Setting a limited number of prices for certain categories of products

Penetration pricing is ____________.

Setting an initally low price to establish a new product in the market

Shopping goods, such as appliances, are _______________.

Somewhat expensive and not purchased too often

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 specific product?

Specialty goods

Markup is _________.

The amount added to an item's purchase cost to sell it at a profit

The _____________ step of the seven-step development process is concept testing.

Third

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

Which of the following is the definition of a license brand?

When companies or personalities sell the rights to put their names on products