29 Questions
What is a product in the context of business?
Both tangible and intangible attributes, including services and ideas
What type of product is purchased to satisfy personal and family needs?
Consumer product
Which product classification is characterized by a relatively inexpensive and frequently purchased item?
Convenience product
What is an example of an unsought product?
A insurance policy
What is a business product used for?
For resale, making other products, or for use in a firm's operations
Which type of product possesses one or more unique characteristics that attract a significant group of buyers?
Specialty product
What is the primary goal of understanding the product life cycle?
To identify opportunities for new-product development
What type of product is a material that becomes part of a physical product, usually coming from mines, forests, oceans, or recycled solid wastes?
Raw material
What is the term for the total assortment of products offered by a company?
Product mix
What is the primary function of a supply in an organization?
To facilitate production and operations
What is the primary function of branding?
To differentiate a product from its competitors
What is the economic basis of pricing?
Supply and demand
What type of equipment is used in a firm's production or office activities?
Accessory equipment
What is the term for the process of managing a product mix?
Product portfolio management
What type of product is an item that becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly?
Component part
What is a business service in terms of product classifications?
An intangible product
What is the primary goal of pricing objectives?
To maximize profits
What type of material is used directly in the production of another product but is not readily identifiable in the finished product?
Process material
What is the primary purpose of packaging in terms of the product?
To maintain the product's functional form
What does the promotional role of packaging involve?
Communicating the product's features and benefits
What is the primary purpose of labeling on a product or its package?
To present information on a product or its package
What sets Casper apart from many brick-and-mortar mattress stores?
It offers a 100-day trial period
What is unique about Casper's product offerings?
It sells just four mattresses in all available sizes
What is the primary benefit of Casper's pricing strategy?
It prices the mattresses below that of most brick-and-mortar stores
What is the purpose of reference pricing?
To position a product next to a more expensive model or brand
What is the benefit of using everyday low prices (EDLPs)?
It provides a consistent pricing experience for customers
What is the strategy of setting prices using odd numbers that are slightly below whole-dollar amounts?
Odd-number pricing
What is the purpose of bundle pricing?
To package together two or more complementary products
What is customary pricing based on?
Tradition
Test your understanding of products, their classification, life cycle, and development. Learn how to create and price products that satisfy customers.
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