Ch. 8

Question 1

anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want (can be tangible or intangible)

Answer 1

product

Question 2

a product that consists of activities, benefits or satisfaction that is essentially intangible and does not result in the ownership of anything

Answer 2

service

Question 3

basic problem-solving benefits consumers are seeking

Answer 3

core customer value

Question 4

the physical good or delivered service that supplies the core benefit

Answer 4

actual product

Question 5

nonphysical aspects and associated services of the product (ex: warranty, credit, delivery, installation, etc.)

Answer 5

augmented product

Question 6

good or service that consumers purchase frequently with a minimum of comparison and effort

Answer 6

convenience products

Question 7

good or service for which consumers will spend time and effort gathering information on price, product attributes, and product quality

Answer 7

shopping products

Question 8

consumer products and services with unique characteristics or brand identification which a significant group of buyers is willing to make a special purchase effort

Answer 8

specialty products

Question 9

those for which consumers have little awareness or interest

Answer 9

unsought products

Question 10

groups of associated items that consumers tend to use together or think of as part of a group of similar products or services

Answer 10

product lines

Question 11

complete set of products and services offered by a firm; has various product lines

Answer 11

product mix

Question 12

• full line vs. limited line
• filing out vs. contracting (adding more items within present range or cutting items from within current range)
• line stretch

Answer 12

product line strategies

Question 13

new variant of an existing product that competes in the same category

Answer 13

product line extension

Question 14

when an existing brand offers a new product in a product category the brand has never competed in

Answer 14

brand extension

Question 15

within the same category

Answer 15

line extension

Question 16

adding lower-end (lower prices and quality) items to the product line

Answer 16

downward stretch

Question 17

adding higher-end items to the product line

Answer 17

upward stretch

Question 18

adding lower-end and higher-end items to the product line

Answer 18

two-way stretch

Question 19

a firm’s entire range of products

Answer 19

product mix

Question 20

developing a differentiated offer, delivery, and image

Answer 20

managing service differentiation

Question 21

delivering consistently higher quality than the competitors

Answer 21

managing service quality

Question 22

• training current employees or hiring new ones
• increasing the quantity of service by giving up some quality
• harnessing the power of technology

Answer 22

managing service productivity

Question 23

a name, term, symbol, or any other unique element of a product that identifies one firm’s product(s) and set its apart from competition

Answer 23

brand

Question 24

set of assets and liabilities linked to a brand that impact the value provided by the product or service

Answer 24

brand equity

Question 25

estimation of the total financial value of a brand

Answer 25

brand valuation

Question 26

the value of customer relationships that the brand creates

Answer 26

customer equity

Question 27

• attributes
• benefits
• beliefs and values

Answer 27

brand positioning

Question 28

• selection
• protection

Answer 28

brand name selection

Question 29

• manufacturer’s brand
• private brand
• licensing
• co-branding

Answer 29

brand sponsorship

Question 30

• line extension
• brand extensions
• multi-brands
• new brands

Answer 30

brand development

Question 31

percentage of target consumers who are familiar with the brand and what it stands for (improves the likelihood of purchase)

Answer 31

brand awareness

Question 32

relation between product’s benefits and its cost (usually determined in relation to competitors)

Answer 32

perceived brand value

Question 33

mental and emotional links that consumers make between a brand and its key product attributes

Answer 33

brand associations

Question 34

not just repeated brand purchase, but also refusal to purchase other brands

Answer 34

brand loyalty

Question 35

marketing under the manufacturer’s own name

Answer 35

national brands

Question 36

create and owned by a reseller of a product or service

Answer 36

store brands/private label

Question 37

use names and symbols created by other companies or well-known movie characters or celebrities for a fee

Answer 37

licensing

Question 38

use the established brand names of two different companies on the same product

Answer 38

co-branding

Question 39

owned, produced, and managed by manufacturer

Answer 39

brand ownership

Question 40

products developed by retailers

Answer 40

private-label brands

Question 41

using corporate name to brand all product lines and products

Answer 41

family brands

Question 42

using separate names for each product

Answer 42

individual brands

Question 43

all sub-brands use the same master band and only differentiate in their descriptions (ex: google)

Answer 43

branded houses

Question 44

consist of various brands, each sub-brand operates independently and obtain separate market share and profits (ex: P&G)

Answer 44

house of brands

Question 45

some companies combine branded houses and house of brands (ex: Coca Cola)

Answer 45

hybrid

Question 46

using same brand name in different product line (ex: Snickers Ice Cream)

Answer 46

brand extension

Question 47

using same brand name within same product line (ex: Snickers & Hazelnut/another flavor of Snickers)

Answer 47

line extension

Question 48

• spend less on building brand awareness
• spillover effect from brand to extension
• synergistic effects with complementary products can boost sales

Answer 48

benefits of brand extension

Question 49

• can dilute brand equity

Answer 49

disadvantages of brand extension

Question 50

brand extension adversely affects consumer perceptions about attributes of the core brand

Answer 50

brand dilution

Question 51

marketing 2 or more brands together on same packaging, promotion, store, etc.

Answer 51

co-branding

Question 52

a contractual arrangement between firms, in which one firm allows another to use its brand, logo, symbol, characters, etc. for a fee

Answer 52

brand licensing

Question 53

offering service with product (ex: Toms shoes)

Answer 53

service-product continuum

Question 54

services are non-physical and can’t be directly touched (makes it challenging for marketers to convey benefits through description)

Answer 54

intangibility

Question 55

services are produced and consumed at the same time, rarely can “try it before you buy it”, can’t return service after performed

Answer 55

inseperability

Question 56

services have greater variability

Answer 56

variability

Question 57

services can’t be stored for future use, some services are irreversible and “disappear” once rendered, potential for large loss of revenue

Answer 57

perishability

Question 58

Blood donations to the Red Cross are considered ____ products

Answer 58

unsought

Question 59

Freedom from defect and consistency in delivering a targeted level of performance is an attribute of product’s _______

Answer 59

conformance quality

Question 60

_____ helps the seller to segment markets

Answer 60

Branding

Question 61

___ means that the quality of services depends on who provides them as well as when, where, and how they are provided

Answer 61

service variability

Question 62

____ is a measure of the brand’s ability to capture consumer preference and loyalty

Answer 62

brand equity

Question 63

The branding strategy of launching a product or services as a national or store brand is considered a _____

Answer 63

brand sponsorship