Pricing 1
the amount of funds required to purchase a product
What is price
the cost multiplied by one plus the target markup percentage
What is markup
people who are quick to purchase the latest product once it is somewhat established
What are early adopters
seeks to increase sales of existing products in existing markets
What is market penetration strategy
the process by which new products are accepted into the marketplace
What is the diffusion process
costs that remain stable at any production level within a certain range
What is fixed costs
costs that change with the level of production
What is variable costs
the perceived level of service a customer receives
What is service quality
the introduction of new products into established markets
What is product development
final stage of the product lifecycle, in which innovations or shifts in consumer preferences bring about a steady decline in industry sales
What is the decline stage
the method for determining the amount of product that must be sold at a given price to generate sufficient revenue to cover total costs—both fixed and variable
What is a Breakeven analysis
the portion of sales revenue left over after paying product costs.
What is margin
the point at which the customer and service provider interact
What is a service encounter
focuses on developing entirely new products for new markets
What is product diversification strategy
a group of related products sold under the same brand
What are product lines
pricing practices intended to maintain pricing parity or emphasize overall product value to avoid direct price comparison
What is competition objectives
pricing practices aimed at achieving a particular sales volume or market share
What is volume or sales objectives
when a new product idea is ready for full-scale manufacturing and marketing
What is commercialization
third stage of product lifecycle, in which industry sales reach a plateau
What is maturity stage
an assortment of product lines and individual product offerings
What is the product mix
the relationship between prices, demand, and overall profitability
What is cost-volume-profit (CVP)
using the product cost plus a target markup percentage to calculate the sales price
What is cost-based pricing
the number of variations in each product line
What is product line depth
a series of stages from first learning about the new product to trying it and deciding whether to purchase
What is the adoption process
the number of different product lines a firm offers
What is product mix breadth