BU121 Study Guide - Midterm Guide: Price Skimming, Value-Based Pricing, Profit Maximization
Document Summary
Convince the customer that the product provides that unique benefit: consistent system of activities to convince the customer of the unique benefits. Product defined by the value proposition is what you offer that helps customers complete either function, social, or emotional jobs or helps them satisfy basic needs. Total product concept: brand, packaging, service, warranty, delivery, credit, atmosphere, image, reputation, accessibility, price. Products that are bought by the end user are called consumer products. E. g. razors, sandwiches, cars, stereos, magazines, and houses. Products that get used up are called consumer non-durables. Products that last for a while are consumer durables. Classification of consumer products by the effort expended to buy them. No effort: life insurance, burial plots, new products. Customers don"t evaluate the product, or compare the product. Shelf position requires a good relationship with the distributor: soft drinks, bread. Homogenous: price is the only comparison point. Capital products are usually large, expensive items with a long lifespan.
