chapter 8

Question 1

What is a product?

Answer 1

type of market offering that can be offered for use or consumption to satisfy a want or need

Question 2

What are product levels? What does a product ultimately serve?

Answer 2

Bullʻs eye model
-core customer value = “What is the customer really buying?” → the experience that comes with the product
-actual product = brand name, quality level, features, design, packaging
-augmented product = delivery and credit, after-sale service, product support, and warranty

Question 3

What are the characteristics of services?

Answer 3

-intangibility = services cannot be seen,tasted,felt,heard or smelled before purchase
-inseparability = services cannot be separated from their providers
-variability = quality of services depends on who provides them and when,where, and how
-perishability = services cannot be stored for later sale or use

Question 4

Describe each of the four brand development strategies. Give an example.

Line extension, Brand extension, Multibrand, New brand

Answer 4

Line extension
-same brand name and product category
-new forms, colors, sizes, ingredients, or flavors

Brand extension
-current brand name to a new product in a new category

Multibrand
-many brands in a given product category
-gain, tide, downy, bounce (laundry detergent category)

New brand
-new brand in a product category
-Lexus owned by Toyota