AP Business with Personal Finance · Summary

Unit 2 summary

  1. Segment by demographic, geographic, psychographic or behavioral variables; target one segment (concentrated), several with different versions (differentiated) or everyone (undifferentiated).
  2. The decision process: need recognition, information search, evaluation, purchase, post-purchase evaluation. Doubt after a costly purchase is cognitive dissonance.
  3. Primary research is new data you collect; secondary research already exists. A random sample tends to represent the population; a large biased sample is still biased.
  4. Product levels: core benefit, actual product, augmented product. Life cycle: introduction, growth, maturity, decline.
  5. Markup price = cost x (1 + markup). Break-even units = fixed costs / (price - variable cost per unit).
  6. Intensive, selective and exclusive distribution differ in how many outlets carry a product; intermediaries take a share of the price but cut contacts and handle storage and selling.
  7. Cost per thousand = cost / audience x 1,000; click-through rate = clicks / views; ROI = (gain - cost) / cost.