Chap 12* Flashcards
What is product?
bundle of physical, service and symbolic attributes designed to satisfy a customer’s wants and needs
People want _________, not objects.
satisfaction
What are services?
intangible tasks that satisfy the needs of consumers and business users
What are goods?
tangible products that customers can see, hear, smell taste, or touch
What are goods - services continuum?
spectrum along which goods and services fall according to their attributes, from pure good to pure service
Cell phone > Cellphone and service
Characteristics of Services
.Intangible .Inseparable from the service providers .Perishable .Cannot be standardized .Buyers play important roles in the creation and distribution of services .Wide variations in service standards
What is homeshoring?
hiring workers to do jobs from their homes
How much of the market does the service sector make up in the US?
3/4
Two types of products
B2C products - destined for ultimate customers
B2B products- sold to other businesses for use in other products or for them to then sell to customers
4 Classification of Consumer Products
.Specialty products - unique characteristics
.Unsought Products - things we may not have thought of or needed yet
.Shopping products - compare goods before buying
.Convenience Products - buy frequently
3 types of Convenience Products
Impulse goods and services
Staple goods
Emergency good and services
What are Business Products?
Emphasis is based on product uses vs customer buying behavior.
*Installation business product
Major capital investment in B2B market (like a speciality product in consumer products)
- requires lots of time and money
Accessory Equipment?
Capital items that typically cost less and last for shorter periods
- electronics
Component Parts and Materials?
Finished business products of one producer that become the part of the final products of another producer.
- Bose in vehicles
Raw Materials?
Natural resources that become part of a final product
*Supplies?
regular expenses a firm incurs in its daily operations (convenience products in consumer products)
- toilet paper
- copy paper
- cleaning supplies
What is total quality management (TQM)?
Continuous effort to improve products and work processes with the goal of achieving customer satisfaction and world-class performance
ISO 9000
standards implemented by the European Union define international, generic criteria for quality management and assurance
Benchmarking requires two types of analysis:
internal and external
Internal analysis:
analyze its own activities to determine strengths and weaknesses
External analysis:
gathering information about the benchmark partner, to find out why the partner is perceived as the industry’s best
What is a service encounter?
point at which the customer and service provider interact
What is service quality?
expected and perceived quality of a service offering
5 Variables that determine quality of service -
Tangibles: physical evidence Reliability: consistency of performance Responsiveness Assurances Empathy
What is product line?
series of related products
What is Product Mix?
assortment of product lines and individual product offerings
Product mix width?
number of product lines a firm offers
- Women, Men, Kids Clothes
Product mix length?
number of different products a firm sells
- women’s: socks, underwear, shirts, pants
Product mix depth?
variations in each product that the firm markets
- women’s: shirts - different colors, different styles
Line extension:
development of individual offerings that appeal to different market segments while remaining closely related to the existing product line
- Pottery Barn, PB Teen
How do you extend product lifecycle?
- Increasing frequency of use
- Increasing number of users
- Finding new uses
- Changing package sizes, labels, or product quality
*Consumer goods such as soap milk and deodorants are generally classified as _____ products.
Convenience
*Which of the following terms refers to the specialty products of the business market?
Installations
*Which of the following terms refers to the convenience products of the business market?
Supplies
*A series of related products offered by one company is called a product _____.
line
