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.