Chap 8

Question 1

Product:

Answer 1

The need-satisfying offering of a firm. A product may be a physical good or a service, or a blend of both.

Question 2

Quality:

Answer 2

A product’s ability to satisfy a customer’s needs or requirements.

Question 3

Good:

Answer 3

Is a physical thing that can be seen and touched. A good is a tangible item. It’s usually easy to know exactly what you will get before you decide to buy it. And once you’ve bought it you own it.

Question 4

Services:

Answer 4

Are not physical, they are intangible. When you provide a customer with a service, the customer can’t keep it. A service is experienced, used or consumed. Services are perishable. They can’t be produced and then stored to sell at some future time when more customers want to buy.

Question 5

Product assortment:

Answer 5

The set of product lines and individual products that a firm sells.

Question 6

Product line:

Answer 6

A set of individual products that are closely related.

Question 7

Individual product:

Answer 7

A particular product within a product line.

Question 8

Branding:

Answer 8

The use of a name, term, symbol or design to identify a product.

Question 9

Brand name:

Answer 9

Is a word, letter or group of words and letters.

Question 10

Trademark:

Answer 10

Includes only those words, symbols or marks that are legally registered for use by a single company.

Question 11

Service mark:

Answer 11

The same as trademark, except that it refers to a service offering.

Question 12

Successful branding:

Answer 12

The product is easy to label and identify by brand or trademark. The product quality is easy to maintain and the best value for the price. Dependable and widespread availability is possible. When a customer starts using a brand it would be able to continuing using it. Demand is strong enough that the market price can be high enough to make the branding effort profitable. There are economies of scale. If the branding is really successful, costs should drop and profits should increase. Favorable shelf locations or display space in stores will help. This is something retailers can control when the brand their own products.

Question 13

Brand familiarity:

Answer 13

How well customers recognize and accept a company’s brand.

Question 14

Five levels of brand familiarity:

Answer 14

Five levels of brand familiarity are useful for strategy planning: Rejection, Non-recognition, Recognition, Preferences, Insistence

Question 15

Brand rejection:

Answer 15

Potential customers won’t buy a brand unless its image is changed.

Question 16

Brand non-recognition:

Answer 16

Final customers don’t recognize the brand at all.

Question 17

Brand recognition:

Answer 17

Customers remember the brand.

Question 18

Brand preferences:

Answer 18

Target customers usually choose the brand over other brands, perhaps because of habit or favorable past experiences.

Question 19

Brand insistence:

Answer 19

Customers insist on a firm’s branded product and are willing to search for it.

Question 20

The right brand name:

Answer 20

Short and simple, Easy to spell, read and pronounce, Easy to recognize and remember, Can be pronounced in only one way and in all languages

Question 21

Brand equity:

Answer 21

The value of a brand’s overall strength in the market.

Question 22

Lanham Act (1946):

Answer 22

Spells out what kinds of marks (included brand names) can be protected and the exact method of protecting them.

Question 23

Family brand:

Answer 23

The same brand name for several products.

Question 24

Licensed brand:

Answer 24

A well-known brand that sellers pay a fee to use.

Question 25

Individual brands:

Answer 25

Separate brand names for each product. Is used when it’s important for the products to each have a separate identity, as when products vary in quality in type.

Question 26

Generic products:

Answer 26

Products that have no brand at all other than the identification of their contents and the manufacturer or intermediary.

Question 27

Manufacture brands:

Answer 27

Brands created by producers. These are sometimes called national brands since the brand is promoted all across the country or in large regions. (Ex: Colgate)

Question 28

Dealer/private brands:

Answer 28

Brands created by intermediaries. Traditionally dealer brands were knockoffs of manufacturer brands often of lower quality and lower price.

Question 29

Battle of brands:

Answer 29

The competition between dealer brands and manufacturer brands. It’s a question of whose brands will be more popular and who will be in control.

Question 30

Packaging:

Answer 30

Involves promoting, protecting and enhancing the product. Packaging can make a product more convenient to use or store, prevent spoiling or damages and makes products easier to identify and promote.

Question 31

Universal product code (UPC):

Answer 31

Identifies each product with marks readable by electronic scanners.

Question 32

Federal Fair Packaging and Labeling Act (1966):

Answer 32

Requires that consumer goods should be clearly labeled in easy-to-understand terms to give consumers more information. The law also calls o industry to try to reduce the confusing numbers of package sizes and make labels more useful.

Question 33

Nutrition Labeling and Education Act (1990):

Answer 33

Requires food manufactures to use a uniform format that allows consumers to compare the nutritional value of different products.

Question 34

Warranty:

Answer 34

Explains what the seller promises about its product.

Question 35

Magnuson-Moss Act (1975):

Answer 35

Says that producers must provide a clearly written warranty if the choose to offer any warranty, and if so what the warranty will cover and how it will be communicated to target customers.

Question 36

Service guarantees:

Answer 36

Are becoming more common as a way to attract and keep customers.

Question 37

Consumer products:

Answer 37

Products meant for the final consumer.

Question 38

Business products:

Answer 38

Products meant for use in producing other products.

Question 39

Convenience products:

Answer 39

Are products that a consumer needs, but isn’t willing to spend much time or effort shopping for. These products are bought often, require little service or selling, don’t cost much and may even be bought by habit.

Question 40

Impulse products:

Answer 40

Are products that are bought quickly as unplanned purchases because of a strongly felt need. True impulse products are items that the consumer hadn’t plan to buy, but decides to buy on sight.

Question 41

Emergency products:

Answer 41

Are products that are purchased immediately when the need is great. The customer doesn’t have time to shop around.

Question 42

Shopping products:

Answer 42

Are products that a customer feels are worth the time and effort to compare with competing products. Shopping products can be divided into homogenous or heterogeneous products depending what consumers are comparing.

Question 43

Homogeneous shopping products:

Answer 43

Are shopping products that customer sees as basically the same and wants at the lowest price. Ex: Television, washing machines, computers.

Question 44

Heterogeneous shopping products:

Answer 44

Are shopping products the customer sees as different and wants to inspect for quality and suitability. Ex: Furniture, clothing and membership in a spa.

Question 45

Specialty products:

Answer 45

Are consumer products the customer really wants and makes a special effort to find. It’s the customer’s willingness to search that makes it a specialty product.

Question 46

Unsought products:

Answer 46

Are products that customers don’t yet want or know they can buy. So they don’t search for them at all.

Question 47

New unsought products:

Answer 47

Are products offering really new ideas that potential customers don’t know about yet.

Question 48

Regularly unsought products:

Answer 48

Are products that stay unsought but not unbought forever. Ex: Gravestones, Life insurance.

Question 49

Derived demand:

Answer 49

The demand for business products derives from the demand for final consumer products. Ex: Car manufactures buy about 1/5 of all steel products. If demand for cars drop, they’ll buy less steel.

Question 50

Expense item:

Answer 50

A product whose total cost is treated as a business expense in the year it’s purchased.

Question 51

Capital item:

Answer 51

A long-lasting product that can be used and depreciated for many years. Customers pay for the capital item when they buy it, but for tax purposes the cost is spread over a number of years. Ex: Installations such as buildings

Question 52

Accessories:

Answer 52

Short-lived capital items like Canon’s small copy machines.

Question 53

Raw materials:

Answer 53

Unprocessed expense items that are moved to the next production process with little handling. Two types of raw materials: farm and natural products.

Question 54

Farm products:

Answer 54

Are grown by farmers.

Question 55

Natural products:

Answer 55

Are products that occur in nature such as timber, iron ore, oil and coal.

Question 56

Components:

Answer 56

Are processed expense items that become part of a finished product. Component parts are finished items that are ready for assembly into the final product.

Question 57

Supplies:

Answer 57

Are expense items that do not become part of a finished product. Supplies can be divided into three typs: maintenance, repair and operating supplies (=MRO).

Question 58

Professional services:

Answer 58

Are specialized services that support a firm’s operations. Management consulting, information technology and advertising agencies are examples.