Chapter 10: Product Concept

Question 1

Define Products

Answer 1

Anything both favourable and unfavourable received by a person in exchange for possession, consumption, attention or short term use

• Tangible and Intangible

Question 2

Define Consumer Product

Answer 2

Bought to satisfy an individual’s personal wants. Sometimes the same item can be both a business good and a consumer good, depending on how it can be used

• Bought solely for the purpose of liking it
• Personal or Business related reasons

Question 3

Define Convenience Goods as a Consumer Product

Answer 3

Inexpensive products that take little to no effort to shop found and can be found everywhere
(At your convenience to buy; easy to find and access)

• Like a basic need
• Deodorant, Razors

Question 4

Define a Shopping Good as a Consumer Product

Answer 4

A higher end product bought by consumers that are usually compared with same products from other stores; to see if they are better quality, cheaper, etc.

• More effort to purchase these (more expensive)
• Gucci

Question 5

Define a Homogenous Good as a Consumer Product

Answer 5

Products that are perceived as similar, and that are looked for at the lowest price

• Knockoffs, Walmart, Winners

Question 6

Define a Homogenous Good as a Consumer Product

Answer 6

Products perceived as different, in terms of features, quality, and performance.

• Apple Products
  (Expensive, Effort to find)

Question 7

Define Unsought Goods as a Consumer Product

Answer 7

Unknown to consumers. These are known products but not commonly looked for. (hard to sell and don’t want to buy)

• These products require aggressive advertising

Question 8

Define Speciality Goods as a Consumer Product

Answer 8

Can be inexpensive or expensive. They are products with unique qualities, and unique brand attributes. Distribution is often limited to one or very few

• Consumers search extensively, unwilling to accept substitutes

Question 9

Define Product Items

Answer 9

Having distinct offerings

Question 10

Define Product Line

Answer 10

Groups of closely related product items

Question 11

Define Product Mix

Answer 11

All products that one company sells

Question 12

Define Product Mix Width

Answer 12

Firms increase the width or their product mixes to diversify risk, to generate sales, and boost profits. They have widened their product mix to capitalize on established reputations

Question 13

Define Product Line Length

Answer 13

Number of product items in a product Line

• Shirts, Pants, Skirts, etc.

Question 14

Define Product Line Depth

Answer 14

Number of types and sizes offered for each product

• Clothing Sizes
• Flavours of Ice Cream

Question 15

Why do companies often sell more than one single product

Answer 15

Variety Sells. More options, gives more preference

Question 16

Define Adjusting

Answer 16

Over time, firms change product items, and mixes, to take advantage of new technical or product developments.

• Adjusting a product due to the new trends

Question 17

Define Product Modification as a Type of Adjustment in Product

Answer 17

Changing one or more of a products characteristic (when consumer demands change, and competitive demands)

Question 18

Define Quality Modification as a Type of Adjustment in Product

Answer 18

The quality of a product being changes

Question 19

Define Functional Modification as a Type of Adjustment in Product

Answer 19

New advanced technical changes, or functions

Question 20

Define Style Modification as a Type of Adjustment in Product

Answer 20

The presentation being changes

Question 21

Define Planned Obsolescence as a Type of Adjustment in Product

Answer 21

Process of modifying products so that those products become “out of date”/”old”, new ones are made and wanted more.

• Iphone

Question 22

Define Repositioning as a Type of Adjustment in Product

Answer 22

Changing consumers’ perceptions of a brand. Like changing demographics, declining sales, competition, etc.

Question 23

Define Product Line Extensions as a Type of Adjustment in Product

Answer 23

Adding products to an existing product line to compete more broadly

• Ex. Adding new flavours to something

Question 24

Define Product Line Contraction as a Type of Adjustment in Product

Answer 24

Reducing the number of items in a line

• Allocated to the more important products, less waste, etc.

Question 25

Define Brand Naming

Answer 25

The part of a brand that can be spoken in letters or numbers to represent the business

Question 26

Define Brand Mark

Answer 26

The elements that cannot be spoken such as: Reputation, Expectations, etc.

Question 27

Define Product Identification as a Benefit to Branding

Answer 27

Able to distinguish a product from competition

Question 28

Define Repeat Sales as a Benefit to Branding

Answer 28

Identifying brands that consumers want to buy at again

Question 29

Define Brand Loyalty as a Benefit to Branding

Answer 29

Consistent preference for one brand over others

Question 30

Define Generic vs Branded Products as a Branding Strategy

Answer 30

Generic: Low Cost Appeal (No Frills)
Brand: High Quality and Cost (Whole Foods)

Question 31

Define Brand Name of a Manufacturer

Answer 31

Sometimes referred to as a national, or international brand

- Apple

Question 32

What are the advantages of carrying Manufacturer Brands

Answer 32

• Heavy Advertising
• Can attract new customers
• Rapid Delivery

Question 33

Define a Private Brand

Answer 33

Owned by a wholesaler or retailer (i.e Presidents Choice)

Question 34

What are the advantages of carrying Private Brands

Answer 34

• Earn Higher profits on its own brand

- Exclusive

Question 35

Define Individual vs. Family Brands

Answer 35

Different Brands for different people; when products vary greatly in use or performance; several different products under the same brand name (i.e Apple)

Question 36

Define Cobranding

Answer 36

Two or more brand names on a product or package

• Can enhance the prestige or perceived value of a product

Question 37

Define a Trademark

Answer 37

The exclusive right to use a brand or part of a brand (service mark)

• Can last for 15 years
• Ex. Catchy Phrases: Nike “Just do It”

Question 38

Define Trademark Protection

Answer 38

Aggressively enforcing the firms trademarks

Question 39

Define Packaging

Answer 39

Containing and protecting obvious liquids, gels or fluids.
As well as other functions like:
- Hold contents together
- Protect goods through distribution channel
- Today: used for promoting the product as well (presentation)
- Safer and Easier to use also

• Ex. Ketchup
• Different ways it is packages
• Squeezable, or Shelf Like

Question 40

Define Persuasive Labelling

Answer 40

Focusing on a promotional theme or logo and consumer information is secondary

Question 41

Define Informational Labelling

Answer 41

Designed to help the consumer make proper product selections and to lower cognitive dissonance after purchase

Question 42

Define the Consumer Packaging and Labelling Act

Answer 42

Mandated detailed nutritional information on most food packages and standards for health claims on food packaging.

• Low Fat, light, reduced cholesterol, Low calories, etc.