Chapter 11

Question 1

What are the 3 components of a product (or service)

Answer 1

Core customer value
What key benefits is the buyer buying

Actual product
Brand name, quality level, packaging features/design
Delivers the benefit

Associated (augmented) services
Financing, product warranty, product support
The express that come with product

Question 2

What are the 4 types of products

Answer 2

Convenience products
Buys frequently, immediately, and with minimum comparison and burning efforts
Newspapers, candy, gum

Shopping products
Compare carefully on suitability, quality, price and style
Furniture, cars, and appliances

Speciality products
Have unique characteristics or brand identification for which buyers are willing to make a special purchase for
Medical services, wedding dress stores

Unsought products
Consumer may not know about them and does not normally think or buying
Life insurance, funeral services, blood donations

Question 3

What is the difference between a product line and a product mix

Answer 3

Product line
Group of products that consumers think of closely related because they function similarly, are sold to the same customer groups, are marketed through the same types of outlets, or fall within a given price range
Different flavors of pringles
Variants
Depth

Product mix
All of the product lines that a seller offers
Proctor and Gamble owns Pringles, Bounce, Charmin, Gillette
breadth

Question 4

What are the elements of a brand

Answer 4

Brand name
URLs
logos/symbols
Characters
Slogans
Jingles and sounds

Question 5

What advantages do brands provide

Answer 5

Facilitates purchases
Builds trust and loyalty
Protects from competition
Increases firms market value

Question 6

What are the 4 elements of brand equity

Answer 6

Brand awareness
Measures how many customers in market are familiar with a brand
Increase familiarity leads to increase likelihood of purchase

Perceived value
Customers perceptions of benefits compared to costs
Different costs, but both perceived as valuable

Brand associations
Characteristics or emotions customers associate with a brand
Like what do you think of when I say “Subway” (foot long, fresh eats)

Brand loyalty
Tendency to buy the same brand repeatedly
Loyal customers are
Less sensitive to price
Cheaper to market to
Likely to spread good word of mouth

Question 7

What are the roles of packaging

Answer 7

Attracts consumer attention
Enables product to stand out from competitors
Seres as a promotional tool
Allows for differentiated targeting (different sizes of candy)

Question 8

What is the difference between primary and secondary packaging

Answer 8

Primary package
The packaging the consumer uses, such as the toothpaste tube, from which they typically seek convenience in terms of storage, use, and consumption.

Secondary package
The wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package.