Chapter 10

Question 1

What is a product?

Answer 1

Everything, both favorable and unfavorable, a person receives in exchange

Question 2

What are the 4 types of products?

Answer 2

Convenience products
Shopping products
Specialty products
Unsought products

Question 3

What is a convenience product?

Answer 3

Goods and services consumers want to purchase frequently, immediately, and with minimal effort

Question 4

What are shopping products?

Answer 4

Consumers purchase these only after comparing competing products’ price, quality, style, and color
Typically cost more than convenience products

Question 5

What are specialty products?

Answer 5

Offer unique characteristics that compel buyers to purchase particular brands
Ex. fashionable clothing brands or professional services

Question 6

What are unsought products?

Answer 6

Products unknown to the potential buyer or a known product the buyer doesn’t actively seek

Question 7

What is a product item?

Answer 7

A specific version of a product that can be designated as a distinct offering among an organization’s products

Question 8

What is a product line?

Answer 8

A group of related product items sold under the same brand

Question 9

What is a product mix?

Answer 9

A company’s assortment of product lines and individual product offerings

Question 10

What are 5 benefits of organizing related items into product lines?

Answer 10

Advertising economies
Package uniformity
Standardized components
Efficient sales and distributions
Equivalent equality

Question 11

What is product mix width?

Answer 11

Refers to the number of different product lines the firm offers

Question 12

What is product line depth?

Answer 12

Refers to the number of variations in each product line

Question 13

What is product modification and what are the 3 main forms?

Answer 13

Changing the characteristics of an existing product

Quality modifications
Functional modifications
Style modifications

Question 14

What are quality modifications?

Answer 14

Intended to improve dependability and durability of a product

Question 15

What are functional modifications?

Answer 15

Product is altered to change its versatility, effectiveness, convenience, or safety

Question 16

What are style modifications?

Answer 16

Alter sensory appeal of a product by changing its taste, texture, sound, smell, or appearance

Question 17

What is planned obsolescence?

Answer 17

The practice of modifying products in a way that renders previous versions of the product obsolete

Question 18

What is a product line extension?

Answer 18

Occurs when a company adds additional products to an existing product line in order to compete more broadly in the industry

Question 19

What is a brand?

Answer 19

A name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating these products from competitors

Question 20

What is a brand name?

Answer 20

The part of a brand that can be spoken, including letters, words, and numbers

Question 21

What are brand marks?

Answer 21

The elements of a brand that cannot be spoken

Question 22

What are the 3 main purposes of branding?

Answer 22

Product identification
Repeat sales
New product sales

Question 23

What is brand equity?

Answer 23

Refers to the added value the brand gives to a product in a marketplace

Question 24

What is brand loyalty?

Answer 24

A consistent preference for one brand over all others and is the best generator of repeat sales

Question 25

What is a trademark?

Answer 25

A brand for which the owner claims exclusive legal protection

Question 26

What is a service mark?

Answer 26

A trademark for a service

Question 27

What are some popular branding strategies?

Answer 27

Manufacturer’s brand
Private brand
Captive brand
Family branding
Individual branding
Co-branding

Question 28

What is manufacturer’s branding?

Answer 28

A brand name owned by a manufacturer

Question 29

What is a private brand?

Answer 29

Brands offered by retailers and wholesalers

Question 30

What are captive brands?

Answer 30

A brand manufactured by a 3rd party for an exclusive retailer, without evidence of that retailer’s affiliation

Question 31

What is family branding?

Answer 31

Using a single brand name that identifies several related products

Question 32

What is individual branding?

Answer 32

Uses a single brand that uniquely identifies a product, rather than promoting under the name of the company or an umbrella name covering similar items

Ex. Frito Lay produces Lays and Doritos

Question 33

What is co-branding?

Answer 33

Puts two or more brand names on a product or package

Question 34

What are 3 types of co-branding?

Answer 34

Ingredient branding
Cooperative branding
Complementary branding

Question 35

What is ingredient branding?

Answer 35

Identifying the part of the brand that makes up the product

Question 36

What is cooperative branding?

Answer 36

2 brands receiving equal treatment borrow from each other’s brand equity

Question 37

What is complementary branding?

Answer 37

Products are marketed together to suggest usage

Question 38

What are the 4 major objectives of packaging?

Answer 38

Contain and protect products
Promote products
Facilitate storage, use, and convenience of products
Facilitate recycling and reduce environmental damage

Question 39

What is labeling?

Answer 39

Carries an item’s brand name or symbol, name, and address of manufacturer or distributor, information about product’s composition and size, and recommended uses

Question 40

What are Universal Product Codes (UPCs)?

Answer 40

Allow retailers to organize products and track inventory