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M School, CAU 1441 8 Bundling Grouping two or more related products together and pricing them as a single product OddEven Pricing Setting a price at an odd number to connote a bargain and at an even number to suggest quality Leader Pricing Pricing products below the normal markup or below cost to attract customers to a store where they would not otherwise shop Prestige Pricing Increasing the price of a product so that consumers will perceive it as being of higher quality, status, or value Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1433 6 Value pricing Target return on investment Profit maximization Offering the target market a high quality product at a fair price and with good service. The price of a product is set to give a pany the desired profitability in terms of return on its money. Producing a product as long as revenue exceeds the cost of producing it Pricing Objectives Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1425 NewProduct Development Process NewProduct Strategy Idea Generation Idea Screening Business Analysis Development Test Marketing/Product Commercialization New Product Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1417 2 Characteristics of Effective Brand Names ? Easy to pronounce ? Easy to recognize ? Easy to remember ? Short ? Distinctive, unique ? Describes the product ? Describes the product’s use ? Describes the product’s benefits ? Has a positive connotation ? Reinforces the desired product image ? Is legally protectable in home and foreign markets Chapter 14 Understanding Business Luan Ling Eamp。 licensing ? Consumer products ? Publishing Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 146 1 Packaging Image of Retail Store Warranty Color Instructions Image of Brand Attachments Service after Sale Product Chapter 14 Understanding Business Luan Ling Eamp。Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 147 1 Wrench Pepper All Goods Auto Repairing Restaurants Both Goods and Services Counseling TV Programs All Services Chapter 14 Understanding Business Luan Ling Eamp。M School, CAU 1411 Classifying Business Products 1 Capital products Expense items Large, expensive items with a