Chapter 5 - Products, services & brands: building customer value

Question 1

What is a product?

Answer 1

Anything that can be offered to a market

For attention, acquisition, use or consumption

Might satisfy want/need

Question 2

What is a service?

Answer 2

Activity, benefit or satisfaction offered for sale

Essentially intangible

Does not result in ownership of anything

Question 3

What is a consumer product?

Answer 3

Product bought by final consumers for personal consumption

Question 4

What is a convenience product?

Answer 4

Consumer product

Customers usually buy frequently, immediately

Minimal comparison and buying effort

Question 5

What is a shopping product?

Answer 5

Consumer product

In process of selecting and purchasing, usually compares with other products based on attributes such as:

• suitability
• quality
• price
• style

Question 6

What is a speciality product?

Answer 6

Consumer product

Unique characteristics/brand identification

Significant group of buyers willing to make special effort to purchase

Question 7

What is an unsought product?

Answer 7

Consumer product

Consumer either does not know about or knows about bus does not normally consider buying

Question 8

What is an industrial product?

Answer 8

Product bought by individuals and organisations

For further processing/use in conducting a business

Question 9

What is social marketing?

Answer 9

Use of commercial marketing concepts and tools

In programmes designed to influence individuals behaviour

With aim to improve their well-being and that of society

Question 10

What is product quality?

Answer 10

Characteristics of a product/service that bear on its ability to satisfy stated/implied customer needs

Question 11

What is a brand?

Answer 11

Name/term/sign/symbol/design/combination

Identifies products/services of one seller/group of sellers

Differentiates them from those of competitors

Question 12

What is a product line?

Answer 12

Group of products closely related

Function in similar manner

Sold to same customer groups

Marketed through same types of outlets

Fall within given price ranges

Question 13

What is service intangibility?

Answer 13

Services that cannot be seen, tasted, felt, heard or smelled before bought

Question 14

What is service inseparability?

Answer 14

Services produced and consumed at same time

Cannot be separated from their providers

Question 15

What is service variability?

Answer 15

Quality of services ay vary greatly depending on who provides them and when, where and how

Question 16

What is service perishability?

Answer 16

Services that cannot be stored for later sale/use

Question 17

What is a service profit chain?

Answer 17

Chain that links service firm profits with employee and customer satisfaction

Question 18

What is internal marketing?

Answer 18

Orienting and motivating customer contact employees

Supporting service people to work as team to provide customer satisfaction

Question 19

What is interactive marketing?

Answer 19

Training services employees in fine art of interacting with customers to satisfy their needs

Question 20

What is brand equity?

Answer 20

Differential effect that knowing brand name has on customer response to product/marketing

Question 21

What is co-branding?

Answer 21

Practice of using established brand names of 2 different companies on same product

Question 22

What is a line extension?

Answer 22

Extending existing brand name to new:

• forms
• colours
• sizes
• ingredients
• flavours

…of an existing product category