BUSI 2204 Final Exam Key Terms

Flashcards summarizing key terms and definitions from the BUSI 2204 marketing course, useful for exam preparation.

Product

Anything, both favourable and unfavourable received by a person in an exchange for possession, consumption, attention, or short-term use.

Business Product

A product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers.

Consumer Product

A product bought to satisfy an individual's personal wants.

Convenience Product

A relatively inexpensive item that merits little shopping effort.

Shopping Product

A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores.

Specialty Product

A particular item with unique characteristics for which consumers search extensively and for which they are very reluctant to accept substitutes.

Unsought Product

A product unknown to the potential buyer or a known product that can be designated as a distinct offering among an organization's products.

Product Line

A group of closely related product items.

Product Mix

All products that an organization sells.

Product Mix Width

The number of product lines an organization offers.

Product Line Length

The number of product items in a product line.

Product Line Depth

The different versions of a product item in a product line.

Product Modification

Changing one or more of a product's characteristics.

Planned Obsolescence

The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.

Brand

A name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products.

Brand Name

That part of a brand that can be spoken including letters, words, and numbers.

Brand Mark

The elements of a brand that cannot be spoken.

Brand Equity

The value of company and brand names.

Global Brand

A brand with at least 20 percent of the product sold outside its home country or region.

Brand Loyalty

A consistent preference for one brand over all others.

Generic Product

A no-frills, no-name, low cost product that is simply identified by its product category.

Manufacturer's Brand

The brand name of a manufacturer.

Private Brand

A brand name owned by a wholesaler or retailer.

Individual Branding

The use of different brand names for different products.

Family Brand

The marketing of several different products under the same brand name.

Co-branding

Placing two or more brand names on a product or its package.

Trademark

The exclusive right to use a brand or part of a brand.

Warranty

A confirmation of the quality or performance of a good or service.

Express Warranty

A written guarantee.

Implied Warranty

An unwritten guarantee that the good or service is fit for the purpose for which it was sold.

New Product

A product new to the world, new to the market, new to the producer or seller, or new to some combination of these.

New-Product Strategy

A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.

Product Development

A marketing strategy that entails the creation of new products for current customers.

Brainstorming

The process of getting a group to think of unlimited ways to vary a product or solve a problem.

Screening

The first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason.

Concept Test

Evaluation of a new-product idea, usually before any prototype has been created.

Business Analysis

The second stage of the screening, where preliminary figures for demand, cost, sales, and profitability are calculated.

Development

The stage in the product development process in which a prototype is developed and a marketing strategy is outlined.

Test Marketing

The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Commercialization

The decision to market a product.

Adopter

A consumer who was satisfied enough with his or her trial experience with a product to use it again.

Innovation

A product perceived as new by a potential adopter.

Diffusion

The process by which the adoption of an innovation spreads.

Product Life Cycle (PLC)

A concept that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death).

Product Category

All brands that satisfy a particular type of need.

Introductory Stage

The full-scale launch of a new product into the marketplace.

Growth Stage

The second stage of the product life cycle when sales typically grow at an increasing rate.

Maturity Stage

A period during which sales increase at a decreasing rate.

Decline Stage

A long-run drop in sales.

Service

The result of applying human or mechanical efforts to people or objects.

Intangibility

The inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed.

Search Quality

A characteristic that can be easily assessed before purchase.

Experience Quality

A characteristic that can be assessed only after use.

Credence Quality

A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience.

Inseparability

The inability of the production and consumption of a service to be separated; consumers must be present during the production.

Inconsistency

The inability of service quality to be consistent each time it is delivered.

Reliability

The ability to perform a service dependably, accurately, and consistently.

Responsiveness

The ability to provide prompt service.

Assurance

The knowledge and courtesy of employees and their ability to convey trust.

Empathy

Caring, individualized attention paid to consumers.

Tangibles

The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service.

Gap Model

A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality.

Core Service

The most basic benefit the consumer is buying.

Supplementary Services

A group of services that support or enhance the core service.

Mass Customization

A strategy that uses technology to deliver customized services on a mass basis.

Internal Marketing

Treating employees as customers and developing systems and benefits that satisfy their needs.

Non-profit Organization

An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.

Public Service Advertisement (PSA)

An announcement that promotes a program of a non-profit organization or of a federal, provincial or territorial, or local government.

Price

That which is given up in an exchange to acquire a good or service.

Revenue

The price per unit charged to customers multiplied by the number of units sold.

Costs

The combined financial values of all inputs that go into the production of a company's products, both directly and indirectly.

Profit

Revenue minus expenses.

Return on Investment (ROI)

Net profits divided by the investment.

Market Share

A company's product sales as a percentage of total sales for that industry.

Price Sensitivity

Consumers' varying levels of desire to buy a given product at different price levels.

Price Elasticity of Demand

A measurement of change in consumer demand for a product relative to the changes in its price.

Break-Even Analysis

The calculation of number of units sold, or total revenue required, a firm must meet to cover its costs.

Price Strategy

A basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle.

Price Skimming

A high introductory price, often coupled with heavy promotion.

Penetration Pricing

A relatively low price for a product initially as a way to reach the mass market.

Value-Based Pricing

Setting the price at a level that seems to the customer to be a good price compared with the prices of other options.

FOB Origin Pricing

The buyer absorbs the freight costs from the shipping point ('free on board').

Uniform Delivered Pricing

The seller pays the actual freight charges and bills every purchaser an identical, flat freight charge.

Zone Pricing

A modification of uniform delivered pricing that divides the total market into segments or zones.

Freight Absorption Pricing

The seller pays all or part of the actual freight charges and does not pass them on to the buyer.

Basing-point Pricing

Charging freight from a given point regardless of the city from which the goods are shipped.

Single-Price Tactic

Offering all goods and services at the same price.

Flexible Pricing

Different customers pay different prices for essentially the same merchandise.

Professional Services Pricing

Fees charged typically at an hourly rate by people with experience and training.

Loss-Leader Pricing

A product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store.

Odd-Even Pricing

Odd-numbered prices connote bargains, and even-numbered prices imply quality.

Price Bundling

Marketing two or more products in a single package for a special price.

Unbundling

Reducing the bundle of services that comes with a basic product.

Bait Pricing

A tactic that tries to get consumers into a store through false or misleading price advertising.

Deceptive Pricing

Promoting a price or price saving that is not actually available.

Price Fixing

An agreement between two or more firms on the price they will charge for a product.

Predatory Pricing

The practice of charging a very low price to drive competitors out of business.

Promotion

Communication by marketers that informs, persuades, reminds, and connects potential buyers to a product.

Promotional Strategy

A plan for the use of the elements of promotion: advertising, public relations, personal selling, and social media.

Competitive Advantage

The set of unique features of a company perceived as significant by the target market.