Term
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Definition
| identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each. |
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Term
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Definition
| dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes. |
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Term
| market targeting (targeting) |
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Definition
| process of evaluating each market segment's attractiveness and selecting one or more segments to enter. |
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Term
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Definition
| actually setting apart the market offering to create superior customer value. |
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Term
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Definition
| arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. |
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Term
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Definition
| dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods. |
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Term
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Definition
| dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality. |
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Term
| age and life-cycle segmentation |
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Definition
| dividing a market into different age and life-cycle groups |
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Term
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Definition
| dividing a market into different groups based on gender |
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Term
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Definition
| dividing a market into different income groups |
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Term
| psychographic segmentation |
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Definition
| dividing a market into different groups based on social class, lifestyle, or personality characteristics |
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Term
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Definition
| dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product |
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Term
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Definition
| dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item |
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Term
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Definition
| dividing the market into groups according to the different benefits that consumers seek from the product. |
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Term
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Definition
| forming segments of consumers who have similar needs and buying behavior even though they are located in different countries |
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Term
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Definition
| the size, purchasing power, and profiles of the segments can be calculated |
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Term
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Definition
| the market segments can be effectively reached and served |
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Term
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Definition
| the market segments are large or profitable enough to serve |
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Term
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Definition
| the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs |
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Term
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Definition
| effective programs can be designed for attracting and serving the segments |
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Term
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Definition
| a set of buyers sharing common needs or characteristics that the company decides to serve |
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Term
| undifferentiated (mass) marketing |
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Definition
| a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer |
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Term
| differentiated (segmented) marketing |
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Definition
| a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each |
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Term
| concentrated (niche) marketing |
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Definition
| a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches |
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Term
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Definition
| the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups- includes local marketing and individual marketing |
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Term
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Definition
| tailoring brands and promotions to the needs and wants of local customer groups- cities, neighborhoods, and even specific stores |
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Term
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Definition
| tailoring products and marketing programs to the needs and preferences of individual customers- also labeled "one-to-one marketing", "customized marketing", and "markets-of-one marketing" |
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Term
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Definition
| the way the product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products |
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Term
| perceptual positioning maps |
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Definition
| show consumer perceptions of brands versus competing products on important buying dimensions |
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Term
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Definition
| an advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices |
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Term
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Definition
| brands differentiated on features, performance, or style and design |
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Term
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Definition
| brands differentiated through speedy, convenient, or careful delivery. |
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Term
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Definition
| gaining competitive advantage through the way a company designs their channel's coverage, expertise, and performance |
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Term
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Definition
| hiring and training better people than their competitors do |
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Term
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Definition
| differentiating by company or brand image conveying the product's distinctive benefits and positioning |
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Term
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Definition
| the difference delivers a highly valued benefit to target buyers |
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Term
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Definition
| competitors do not offer the difference, or the company can offer it in a more unique way |
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Term
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Definition
| the difference is better than other ways customers might obtain the same benefit |
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Term
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Definition
| the difference is visible and transmittable to buyers |
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Term
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Definition
| competitors cannot easily copy the difference |
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Term
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Definition
| buyers can afford to pay for the difference |
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Term
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Definition
| the company can introduce the difference profitably |
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Term
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Definition
| the full positioning of a brand- the full mix of benefits upon which it is positioned |
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Term
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Definition
| a statement that summarizes company or brand positioning- it takes this form: to (target segment and need) our (brand) is (concept) that (point-of-difference) |
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Term
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Definition
| anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need |
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Term
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Definition
| any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything |
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Term
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Definition
| a product bought by final consumer for personal consumption |
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Term
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Definition
| a consumer product that customers usually buy frequently, immediately, and with a minimum comparison and buying effort. |
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Term
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Definition
| a consumer product that the customer, in the process of selection and purchase, usually compares on such bases as suitability, quality, price, and style |
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Term
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Definition
| a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort |
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Term
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Definition
| a consumer product that the consumer either does not know about or known about but does not normally think of buying |
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Term
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Definition
| a product bought by individuals and organizations for further processing or for use in conducting a business |
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Term
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Definition
| activities undertaken to create,maintain, or change the attitudes and behavior of target consumers toward an organization |
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Term
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Definition
| activities undertaken to create, maintain, or change attitudes or behavior toward particular people |
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Term
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Definition
| activities undertaken to create, maintain, or change attitudes or behavior toward particular places. |
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Term
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Definition
| the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society |
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Term
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Definition
| the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs |
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Term
| total quality management (TQM) |
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Definition
| an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes |
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Term
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Definition
| the ability of a product to perform its functions |
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Term
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Definition
| freedom from defects and consistency in delivering a targeted level of performance |
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Term
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Definition
| simply describes the appearance of the product |
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Term
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Definition
| contributes to a product's usefulness as well as to its looks |
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Term
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Definition
| a name, term, sign, symbol, design, or combination of these that identifies that products or services of one seller or group of sellers and differentiates them from those of competitors |
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Term
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Definition
| the activities of designing and producing the container or wrapper for a product |
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Term
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Definition
| identifies the product or brand, describes several things about the product, and promotes the brand, supports its positioning, and connects with customers |
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Term
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Definition
| a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, and are marketed through the same types of outlets, or fall within given price ranged |
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Term
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Definition
| adding more items within the present range of the product line |
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Term
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Definition
| a company lengthens its product line beyond its current range |
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Term
| product mix (product portfolio) |
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Definition
| the set of all product lines and items that a particular seller offers for sale |
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Term
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Definition
| refers to the number of different product lines the company carries |
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Term
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Definition
| refers to the total number of items the company carries within its product lines |
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Term
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Definition
| refers to the number of versions offered of each product in the line |
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Term
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Definition
| refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way |
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Term
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Definition
| the differential effect that knowing the brand name has on customer response to the product or its marketing |
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Term
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Definition
| the process of estimating the total financial value of a brand |
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Term
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Definition
| the value of the customer relationships that the brand creates |
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Term
| store brand (private brand) |
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Definition
| a brand created and owned by a reseller of a product or service |
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Term
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Definition
| the practice of using the established brand names of two different companies on the same product. |
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Term
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Definition
| extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category |
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Term
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Definition
| extending an existing brand name to new product categories |
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Term
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Definition
| introducing additional brands into the same category offering a way to establish different features and appeal to different buying motives and lock up more reseller shelf space |
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Term
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Definition
| new name is needed or the company enters a new product category for which none of the company's current brand names are appropriate |
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Term
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Definition
| weeding out weaker or slower-growing brands and focusing their marketing dollars only on brands that can acheive the number-one or number-two market share positions with good growth prospects in their categories |
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Term
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Definition
| a major characteristic of services- they cannot be seen, tasted, felt, heard, or smelled before they are bought |
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Term
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Definition
| a major characteristic of services- they are produced and consumed at the same time and cannot be separated from their providers |
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Term
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Definition
| a major characteristic of services- their quality may vary greatly, depending on who provides them and when, where, and how |
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Term
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Definition
| a major characteristic of services- they cannot be stored for later sale or use |
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Term
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Definition
| the chain that links service firm profits with employee and customer satisfaction |
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Term
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Definition
| orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction |
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Term
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Definition
| training service employees in the fine art of interacting with customers to satisfy their needs |
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Term
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Definition
| the development of original products, product improvements, product modifications, and new brands through the firm's own development efforts |
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Term
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Definition
| the systematic search for new-product ideas |
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Term
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Definition
| screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible |
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Term
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Definition
| a detailed version of the new-product idea stated in meaningful consumer terms |
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Term
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Definition
| an idea for a possible product that the company can see itself offering to the market |
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Term
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Definition
| the way consumers perceive an actual or potential product |
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Term
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Definition
| testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal |
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Term
| marketing strategy development |
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Definition
| designing an initial market strategy for a new product based on the product concept |
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Term
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Definition
| a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives |
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Term
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Definition
| developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering |
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Term
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Definition
| the stage of new-product development in which the product and marketing program are tested in realistic market settings |
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Term
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Definition
| introducing a new product into the market |
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Term
| customer-centered new-product development |
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Definition
| new-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences |
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Term
| sequential product development approach |
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Definition
| one company department works individually to complete its stage of the process before passing the new product along to the next department and stage |
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Term
| team-based new-product development |
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Definition
| an approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness |
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Term
| innovation management system |
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Definition
| collects, reviews, evaluates, and manages new-product ideas |
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Term
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Definition
| the course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline |
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Term
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Definition
| begins when the company finds and develops a new-product idea. Sales are zero and the company's investment costs mount |
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Term
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Definition
| a period of slow sales growth in which the new product is first distributed and made available for purchase. Profits are nonexistent because of heavy expenses of product introduction |
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Term
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Definition
| a period of rapid market acceptance and increasing profits |
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Term
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Definition
| a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increases marketing outlays to defend the product against competition |
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Term
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Definition
| the period when sales fall off and profits drop |
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Term
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Definition
| a basic and distinctive mode of expression |
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Term
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Definition
| a currently accepted or popular style in a given field |
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Term
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Definition
| a temporary period of unusually high sales driven by consumer enthusiasm, and immediate product or brand popularity |
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Term
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Definition
| the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service |
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Term
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Definition
| setting price based on buyers' perceptions of value rather than on the seller's cost |
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Term
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Definition
| offering just the right combination of quality and good service at a fair price |
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Term
| everyday low pricing (EDLP) |
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Definition
| charging a constant, everyda low price with few or no temporary price discounts |
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Term
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Definition
| charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items |
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Term
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Definition
| the power to escape price competition and to justify higher prices and margin |
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Term
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Definition
| attaching value-added features and services to differentiate a company's offers and charging higher prices |
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Term
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Definition
| setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. |
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Term
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Definition
| costs that do not vary with production or sales level |
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Term
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Definition
| costs that vary directly with the level of production |
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Term
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Definition
| the sum of the fixed and variable costs for any given level of production |
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Term
| experience curve (learning curve) |
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Definition
| the drop in the average per-unit production cost that comes with accumulated production experience |
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Term
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Definition
| Adding a standard markup to the cost of the product |
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Term
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Definition
| Setting price to break even on the costs of making and marketing a product, or setting price to make a target profit |
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Term
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Definition
| pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met |
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Term
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Definition
| the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities. |
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Term
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Definition
| the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. Sellers can differentiate their offers to buyers |
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Term
| oligopolistic competition |
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Definition
| the market consists of a few sellers who are highly sensitive to each others' pricing and marketing strategies. |
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Term
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Definition
| the market consists of one seller. |
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Term
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Definition
| the government permits the company to set rates that will yield a "fair return" |
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Term
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Definition
| free to price at what the market will bear |
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Term
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Definition
| a curve that shows the number of units the market will buy in a given time period, at different prices that might be charged |
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Term
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Definition
| a measure of the sensitivity of demand to changes in price |
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Term
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Definition
| setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales |
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Term
| market-penetration pricing |
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Definition
| setting a low price for a new product in order to attract a large number of buyers and a large market share |
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Term
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Definition
| setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices |
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Term
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Definition
| the pricing of optional or accessory products along with the main product |
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Term
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Definition
| setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera |
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Term
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Definition
| used in the case of services; the price of the service is broken down into a fixed fee plus a variable usage rate |
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Term
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Definition
| setting a price for by-products in order to make the main product's price more competitive |
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Term
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Definition
| combining several products and offering the bundle at a reduced price |
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Term
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Definition
| a straight reduction in the price on purchases during a stated period of time |
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Term
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Definition
| a price reduction to buyers who pay their bills promptly |
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Term
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Definition
| a price reduction to buyers who buy large volumes |
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Term
| functional discount (trade discount) |
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Definition
| offered by the seller to trade channel members who perform certain functions, such as selling, storing, and record keeping |
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Term
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Definition
| a price reduction to buyers who buy merchandise or services out of season |
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Term
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Definition
| promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way |
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Term
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Definition
| price reductions given for turning in an old item when buying a new one |
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Term
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Definition
| payments or price reductions to rewards dealers for participating in advertising and sales support programs |
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Term
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Definition
| selling a product or service at two or more prices, where the difference in prices is not based on differences in costs |
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Term
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Definition
| different customers pay different prices for the same product or service |
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Term
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Definition
| different versions of the product are priced differently but not accoring to differences in their costs |
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Term
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Definition
| a company charges different prices for different locations, even though the cost of offering each location is the same. |
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Term
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Definition
| a firm varies its price by the season, month, day, and even the hour |
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Term
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Definition
| a pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product |
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Term
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Definition
| prices that buyers carry in their minds and refer to when they look at a given product |
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Term
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Definition
| temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales |
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Term
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Definition
| setting prices for customers located in different parts of the country or world |
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Term
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Definition
| a geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination |
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Term
| Uniform-delivered pricing |
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Definition
| a geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location |
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Term
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Definition
| a geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price |
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Term
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Definition
| a geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer |
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Term
| freight-absorption pricing |
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Definition
| a geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business |
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Term
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Definition
| adjusting prices continually to meet the characteristics and needs of individual customers and situations |
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Term
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Definition
| selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business |
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Term
| retail (or resale) price maintenance |
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Definition
| a manufacturer cannot require dealers to charge a specified retail price for its product. |
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Term
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Definition
| when a seller states prices or price savings that mislead consumers or are not actually available to consumers |
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Term
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Definition
| when firms employ pricing methods that make it difficult for consumers to understand just what price they are really paying. |
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Term
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Definition
| the process through which firms interact one-to-one with masses of customers to design products and services and tailor-made to individual needs. |
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