BU121 Chapter Notes - Chapter 3: Fixed Cost, Variable Cost, Profit Maximization
Document Summary
Unsought products: products that are either unknown to the potential buyer or are known but not actively sought by the buyer: ex. Convenience products: inexpensive items that require little shopping effort and are bought routinely without planning: ex. Shopping products: items that are bought after planning and comparing with other brands and similar items. Specialty products: items that customers search long and hard for and refuse to accept substitutes. Capital products: large, expensive items with a long lifespan purchased by businesses to make other products or to provide a service. Expense items: items purchased by businesses that are smaller and less expensive than capital products and have a lifespan of less than a year. Pattern of sales and profits over time for a product/product category. Introductory stage, growth stage, maturity stage and decline stage - which results in death of product/product category.
