Product Types & Mix
These products are bought frequently with little effort.
What are convenience goods?
This branding strategy combines two well known brands to create a product together.
What is co-branding?
Expenses that do not change based on production levels, such as rent.
What are fixed expenses?
Customers may associate higher prices with higher __________.
What is quality?
A discount offered to retailers who buy products far in advance of a season is this type.
What is a seasonal discount?
Items sold to businesses for use in their operations fall under this category.
What are business products?
This type of brand is owned and created specifically for a large retailer (ex: Costco).
What is a private-label brand?
Expenses that change based on business activity are called this.
The three general quality levels are premium, moderate, and this.
Offering a reduced per-item price for buying larger quantities is called this.
What is quantity discount or volume pricing?
All the goods and services a business sells is called this.
What is a product mix?
A brand without a widely recognized name or logo that is usually cheaper than name brands is known as this.
What is a generic brand?
The amount added to the cost of a product to determine the base price.
What is markup?
Pricing based on what customers are willing to pay is called this.
What is demand based pricing?
Setting different prices within the same product line to reflect quality differences is called this.
What is price lining?
A working model of a new product used for testing purposes is called this.
What is a prototype?
This identifies and protects a service rather thank a physical product.
What is a service mark?
This markup methods adds a specific dollar amount to the cost of a product.
What is the dollar-markup method?
Demand for necessities like milk or medicine that does not change much based on price is typically this type.
What is inelastic demand?
When a company sets prices in a misleading way to trick customers, it is engaging in this illegal practice.
What is deceptive pricing?
The number of product lines a company offers is known as this.
What is product width?
When a brand name becomes so common it replaces the generic product (like Googling), it risks losing this.
What is legal trademark protection?
This pricing strategy is based primarily on what competitors charge rather than production cost.
What is competition based pricing?
Prices are typically highest in order to recover development costs during this stage of the product life cycle.
What is the introduction stage?
When manufacturers provide a % off a list price to wholesalers or retailers, it is called this.
What is a trade discount?