Chapter 10: Product Concepts

Question 1

Product

Answer 1

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

Question 2

Business product

Answer 2

A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers.

Question 3

Consumer product

Answer 3

A product bought to satisfy an individual’s personal wants. Four types of consumer products: convenience, shopping, specialty, and unsought products.

Question 4

Convenience product

Answer 4

A relatively inexpensive item that merits little shopping effort. Ex. candy or gum.

Question 5

Shopping product

Answer 5

A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores. Two categories are heterogenous (distinct characteristics) or homogenous (ones that do the same thing) shopping products. Ex. computer.

Question 6

Specialty product

Answer 6

A particular item with unique characteristics for which consumers search extensively and for which they are very reluctant to accept substitutes. Ex. cars.

Question 7

Unsought product

Answer 7

A product unknown to the potential buyer or a known product that the buyer does not actively seek.

Question 8

Product item

Answer 8

A specific version of a product that can be designated as a distinct offering among an organization’s products. (Tomato soup from Campbell).

Question 9

Product line

Answer 9

A group of closely related product items. (Campbell’s different kind of soups).

Question 10

Product mix

Answer 10

All products that an organization sells. (Everything Campbell’s sells).

Question 11

Product mix width

Answer 11

The number of product lines an organization offers.

Question 12

Product line length

Answer 12

The number of product items in a product line.

Question 13

Product line depth

Answer 13

The different versions of a product item in a product line.

Question 14

Product modification

Answer 14

Changing one or more of a product’s characteristics.

Question 15

Planned obsolescence

Answer 15

The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.

Question 16

Product line extension

Answer 16

Adding products to an existing product line to compete more broadly in the industry.

Question 17

Brand

Answer 17

A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitor’s products.

Question 18

Brand name

Answer 18

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

Question 19

Brand mark

Answer 19

The elements of a brand that cannot be spoken.

Question 20

Brand equity

Answer 20

The value of company and brand names.

Question 21

Global brand

Answer 21

A brand with at least 20 percent of the product sold outside its home country or region.

Question 22

Brand loyalty

Answer 22

A consistent preference for one brand over all others.

Question 23

Generic product

Answer 23

A no-frills, no-brand-name, low-cost product that is simply identified by its product category.

Question 24

Manufacturer’s brand

Answer 24

The brand name of a manufacturer that actually manufactures the product it is selling. Ex. Samsung.

Question 25

Private brand

Answer 25

A brand name owned by a wholesaler or retailer. Ex. President’s Choice, owned by Loblaws which owns Superstore.

Question 26

Individual branding

Answer 26

The use of different brand names for different products. Ex. Procter and Gamble having all kinds of laundry detergent brands like Tide, Cheer, etc.

Question 27

Family brand

Answer 27

The marketing of several different products under the same brand name. Ex. Sony products.

Question 28

Cobranding

Answer 28

Placing two or more brand names on a product or its package.

Question 29

Trademark

Answer 29

The exclusive right to use a brand or part of a brand.

Question 30

Service mark

Answer 30

A trademark for a service.

Question 31

Generic product name

Answer 31

A term that identifies a product by class or type and cannot be trademarked.

Question 32

Persuasive labelling

Answer 32

Package labelling that focuses on a promotional theme or logo; consumer information is secondary.

Question 33

Informational labelling

Answer 33

Package labelling designed to help consumers make proper product selections and to lower their cognitive dissonance after the purchase.

Question 34

Universal product codes (UPCs)

Answer 34

A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners that match the codes to brand names, package sizes, and prices.

Question 35

Warranty

Answer 35

A confirmation of the quality or performance of a good or service.

Question 36

Express warranty

Answer 36

A written guarantee.

Question 37

Implied warranty

Answer 37

An unwritten guarantee that the good or service is fit for the purpose for which it was sold.

Question 38

Packaging functions

Answer 38

Containing and protecting products, promoting products, facilitating storage, use, and convenience, and facilitating recycling and disposal.

Question 39

Global packaging considerations

Answer 39

Labelling, aesthetics, and climate considerations.