Types of Products Consumer Products A consumer product is any tangible product for sale that is used by a person or household for non-business purposes. LEARNING OBJECTIVES Describe the characteristics of consumer products KEY TAKEAWAYS Key Points Consumer products are defined on a case-by-case basis, under guidelines defined by the US CPSA. The production and sale of consumer products is an important component of US GDP and employment. The Consumer… Read More »Types of Products : Consumer Products and Shopping Products

Benefits and Solutions The core benefit is what consumers feel they are getting when they purchase a product. LEARNING OBJECTIVES Review the four levels of product differentiation KEY TAKEAWAYS Key Points The same product may have different core benefits to different users. For example, one user may install a pool for fitness purposes, while another may do so for status. Different target markets will have different core products, and it… Read More »Benefits and Solutions

What Is a Product? Defining Product A product is any good, service, or idea that can be offered to a market to satisfy a want or need. LEARNING OBJECTIVES Break down the different components that make up tangible and intangible products KEY TAKEAWAYS Key Points Products can be goods, services, or ideas, such as intellectual property. Products can be tangible or intangible. Products can also be classified by use, by… Read More »What Is a Product?

Benefits and Solutions The core benefit is what consumers feel they are getting when they purchase a product. LEARNING OBJECTIVES Review the four levels of product differentiation KEY TAKEAWAYS Key Points The same product may have different core benefits to different users. For example, one user may install a pool for fitness purposes, while another may do so for status. Different target markets will have different core products, and it… Read More »Benefits and Solutions

What Is a Product? Defining Product A product is any good, service, or idea that can be offered to a market to satisfy a want or need. LEARNING OBJECTIVES Break down the different components that make up tangible and intangible products KEY TAKEAWAYS Key Points Products can be goods, services, or ideas, such as intellectual property. Products can be tangible or intangible. Products can also be classified by use, by… Read More »What Is a Product?

Pricing Legal Concerns Unfair Trade Practices Unfair business practices are oppressive or unconscionable acts by companies against consumers or other stakeholders. LEARNING OBJECTIVES Explain the concept of unfair trade practices relative to legal concerns and pricing KEY TAKEAWAYS Key Points Unfair business acts are generally prohibited by law, so committing them may force a company to provide for the award of compensatory damages, punitive damages, and payment of the plaintiff’s… Read More »Pricing Legal Concerns

Geographic Pricing Geographical pricing is the practice of modifying a basic list price based on the location of the buyer to reflect shipping costs. LEARNING OBJECTIVES Describe the different types of geographic pricing from a pricing tactic perspective KEY TAKEAWAYS Key Points Zone pricing is a pricing tactic where prices increase as shipping distances increase. This is sometimes done by drawing concentric circles on a map with the plant or… Read More »Geographic Pricing

Value-Based Pricing Value-based pricing seeks to set prices primarily on the value perceived by customers rather than on the cost of the product or historical prices. LEARNING OBJECTIVES Examine the rationale behind value based pricing as a pricing tactic KEY TAKEAWAYS Key Points Value -based pricing is most successful when products are sold based on emotions (fashion), in niche markets, in shortages (e.g., drinks at open air festival at a… Read More »Value-Based Pricing

Pricing Tactics Discounting Discounts and allowances are reductions to a basic price of goods or services and can occur anywhere in the distribution channel. LEARNING OBJECTIVES Analyze the use and types of discounts as part of pricing tactics KEY TAKEAWAYS Key Points Seasonal discounts are price reductions given for out-of-season merchandise. Cash discounts are reductions on base price given to customers for paying cash or within some short time period.… Read More »Pricing Tactics

Everyday Low Pricing Everyday low price is a pricing strategy offering consumers a low price without having to wait for sale price events or comparison shopping. LEARNING OBJECTIVES Translate the meaning of the EDLP (everyday low price) pricing strategy KEY TAKEAWAYS Key Points Every day low pricing saves retail stores the effort and expense needed to mark down prices in the store during sale events, as well as to market… Read More »Pricing Strategies : Everyday Low Pricing, Other Pricing Strategies