Key terms 11.1
Intangible
Something that cannot be touched
Inseparable
A service cannot be separated from the person who performs it
Variable
Each service is almost always unique
Perishable
means that services cannot be stored for later use
Features
Facts about a good or service
Quality
An indicator of a products excellence
Packaging
Protects products until customers are ready to use them
Warranty
A written document that states the quality of a product with a promise to correct certain problems that might occur
Guarantee
A promise that a product has a certain quality or will perform in a specific way
Product mix
All the goods and services that a business sells
Product line
A group of closely related products within the product mix
Product width
The number of product lines a company offers
Product item
The specific model, color, or size of products in a line
Product planning
The process of deciding which products will appeal to the target market
product depth
The number of product items within a product line
Price
the amount of money requested or exchanged for a product
Value proposition
an explanation of the value of a certain product over others that are similar
List price
The established price printed in a catalog, on a price tag, or a price list
selling price
The actual price a customer pays for a product after any discounts or coupons are deducted
Manufacturer's suggested retail price (MSRP)
The price recommended by the manufacturer
Price objectives
Goals defined in the business and marketing plans for the overall pricing policies of the company
Break-even point
The point at which revenue from sales equals the cost
Markup
The amount added to the cost to determine the selling price
Base price
The general price at which the company expects to sell the product
Psychological pricing
Pricing techniques that create an image of a product and entice customers to buy
Bait and switch
The practice of advertising one product with the intent of persuading customers to buy a more expensive item when they arrive in the store
Price discrimination
Occurs when a company sells the same product to different customers at different prices based on the personal characteristics of the customers.
Deceptive Pricing
The illegal pricing of products in a way that intentionally misleads customers
Predatory pricing
The practice of setting very low prices to remove competition
Price gouging
The raising of prices on certain kinds of goods to an excessively high level during an emergency
Price ceilings
The government may set maximum prices for certain goods and services that it thinks are being priced too high
Price floor
Minimum prices set by the government for certain goods and services that it thinks are being priced too low
Supply chain
The businesses, people, and activities involved in turning raw materials into products and delivering them to the end users.
Channel of distribution
The path that goods take through the supply chain
Direct channel
The path of selling goods or services directly from a manufacturer to end users without using intermediaries
Indirect channel
Uses intermediaries to get the product from the manufacturer to end users
Nonstore retailer
A business that sells directly to consumers in ways that do not involve a physical store location
E-tailers
Retailers that sell products through websites
Multi-channel retailers
Those that sell products through both brick-and-mortar stores and online sites
Trade industry
Provides labor based on specialized knowledge and skills
Bulk-breaking
The process of separating a large quantity of goods into smaller quantities for resale
Freight Forwarder
A company that organizes shipments
Transportation
The physical movement of products through the channel of distribution
Pipeline
A line of connected pipes that are used for carrying liquids and gases over a long distance
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