Product Development & Pricing Strategy Flashcards

What does 'product portfolio management' involve?

Answer: Strategically overseeing a company's entire range of products to maximize overall performance

Product portfolio management involves strategically analyzing and managing all of a company's products to balance growth, risk, and profitability.

Which framework uses four quadrants — Stars, Cash Cows, Question Marks, and Dogs — to analyze a product portfolio?

Answer: BCG Growth-Share Matrix

The BCG Growth-Share Matrix categorizes products into Stars (high growth, high share), Cash Cows, Question Marks, and Dogs to guide portfolio strategy.

What is 'psychological pricing'?

Answer: Setting prices that have a psychological impact on consumers, such as $9.99 instead of $10

Psychological pricing sets prices at points that create a specific perception, such as $9.99 feeling significantly cheaper than $10 to consumers.

What is 'bundle pricing'?

Answer: Offering multiple products together at a lower combined price than if purchased separately

Bundle pricing offers multiple products or services together at a discounted total price, encouraging customers to buy more than they otherwise would.

In product development, what is the 'voice of the customer' (VoC)?

Answer: A research process to capture customers' needs, expectations, and preferences to guide product development

Voice of the Customer (VoC) is a research process that gathers customer needs, expectations, and preferences to inform product design and improvements.

Which pricing strategy charges different prices to different customer segments for the same product?

Answer: Price discrimination (differential pricing)

Price discrimination charges different prices to different customer segments based on their willingness to pay, such as student or senior discounts.