Bus 101 – Ch. 14

Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.

Everything that consumers evaluate when deciding whether to buy something; also called a value package.

The creation of real or perceived product differences.

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To attach a description by use of work, term or mark that indicates the ingredients, ownership or manufacturer of a product.*

A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.

A brand that has exclusive legal protection for both its brand name and its design.

Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead.

Non-branded products that usually sell at a sizable discount compared to national or private-label brands.

The brand names of manufacturers that distribute products nationally.

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.*

A theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline.

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Strategy in which a new product is priced high to make optimum profit while there's little competition.

Strategy in which a product is priced low to attract many customers and discourage competition.

Pricing an item at an odd or even price to suggest a bargain, or an even price to suggest higher quality.*

The practice of offering a product line with several items at specific price points.*

Charging a high price to help promote a high-quality image.*

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The purpose is not increase sales but to attract customers in hopes they will buy other products as well particularly the discretionary items with large markups.*

The process used to determine profitability at various levels of sales.