Intro to Business Chapter 12

_____ is standardized equipment used in a firm's production or office activities and is usually purchased routinely with less negotiation.

Accessory equipment

Helena Fogarty often adds new Mi Ola bathing suits in different designs and colors depending on what's trendy at the moment. Such changes represent ________ for Mi Ola.

Aesthetic modifications

When a customer is searching for their preferred or familiar product brand in a store and cannot find it, they will often purchase an alternate brand that they are aware of due to,

Brand Recognition

When starting a new business, an entrepreneur frequently determines the cost to produce its products, but bases the price it will charge for the product on the competitors' prices. What pricing strategy does this entrepreneur use?

Competition-based pricing

When engaging in ______ a company may consider the total revenue and costs and the breakeven quantity.

Cost-based pricing

In business, producers and sellers often engage in ____ to provide benefits to the specific type of business buyer. Benefits may include a lower cost for large purchases, a lower cost for prompt payment, and lower prices for seasonal purchases.

Discounting

When a person goes to a grocery store to purchase toilet paper and buys the package that is labeled "Toilet Tissue" with no other designations, what brand of toilet tissue did the person purchase?

Generic brand

What type of pricing strategy is used when a company includes the cost of delivery in the pricing strategy?

Geographic pricing

Helena Fogarty does her own research and development for Mi Ola. When she goes out and talks to fellow surfers about their use and likes and dislikes of surfing swimwear in general to get inspiration for new products, she is in which of the following stages of new product development?

Idea generation

What stage of the product life-cycle is the product in when customers' acceptance and awareness of a product are low but sales rise gradually as a result of promotion and distribution?

Introduction

During the _____ stage of a product's life, sales increase but the rate of increase slows and eventually declines.

Maturity

______ occurs when a company promotes its product by accentuating the differences between its product and similar products.

Nonprice competition

When determining the _____ a company considers cost, then number of units per package, consistency, promotional value, the needs of intermediaries (such as shippers), and environmental concerns.

Package design

When a company introduces a new product to the market, it will often use ______ to build the market share quickly. In doing this, the seller sets the price low to stimulate sales and discourage competitors from entering the market.

Penetration pricing

When a company wants to obtain the highest possible profits while its product is new and novel, it will often maximize the price of the product. What type of pricing strategy is this company using?

Price skimming

When buyers equate the status, quality, and value of an item with its cost, what part of the pricing strategy is involved with setting prices of luxury items?

Pricing perceptions

A(n) _____ is a group of similar products that differ only in relatively minor characteristics.

Product line

When business people discuss all of the products a firm has to offer for sale, what are they referring to?

Product mix

When Apple changed the iPhone from an iPhone 5c, to iPhone 5s, to iPhone 6, and iPhone 7 what was it doing to extend the life of the iPhone?

Product modification

Which of the following is not an obtainable goal for a pricing strategy?

Profit maximization

Specifically, what kind of product is a buyer considering purchasing when the item is expensive and for personal use, and the buyer reviews brochures for the product, searches information about the product on-line, compares products, and reviews warranties between different stores and brands?

Shopping product

When setting the price of a product, a company has several pricing objectives it can make the focus of its organizational and marketing objectives. When the company is seeking_______, it is setting the product price at a level to continue industry stability.

Status quo pricing

After Helena Fogarty develops a new product, she asks surfers to try them out and give her feedback. This occurs during which of the following stages of new product development?

Test marketing

When one unit within an organization sells a product to another unit and bases the price charged on the cost of the product plus other costs, what type of pricing is the seller using?

Transfer Pricing

Mi Ola is a

brand name

he creation of a new product goes through several stages. At the ______ phase, a product idea is presented to a sample of potential buyers through a written or oral description to determine their attitudes and initial buying intentions.

concept testing

Mi Ola makes and markets swimwear especially for women surfers. Its product can best be categorized as a ________ product.

consumer shopping