Chapter 8 - Product And Branding Decisions

Question 1

Describe the components of a product

Answer 1

Core customer value- basic problem solving benefits customers seek
Actual product - conversion of core customer value
Associated services - non-physical aspects of a product

Question 2

Identify the types of consumer products

Answer 2

Specialty
Shopping
Convenience
Unsought

Question 3

What is a product mix?

Answer 3

All goods and services a firm offers

Question 4

What is a product line

Answer 4

Groups of associated items

Question 5

Explain the difference between a product’s mix breadth and a product line’s depth?

Answer 5

Product mix breadth is the number of product lines offered by the firm and a product line depth is the number of products within a product line

Question 6

Identify the advantages brands provide firms and consumers

Answer 6

Brands facilitate purchases
Brands establish loyalty
Brands protect competition and price competition
Brands are assets
Brands impact market value

Question 7

Explain the various components of brand equity

Answer 7

Brand awareness- measures how many consumers in a market are familiar with the brand, what it stands for and have an opinion about it
Perceived value- relationship between the product benefits and its cost
Brand associations- reflects mental links that consumers make between the brand and it’s bey product attributes
Brand loyalty- when a consumer buys the same brands products repeatedly over time.

Question 8

What are the various types of brands

Answer 8

Manufacturer (national) brands

Retailer/store (private-label) brands

Question 9

What are the various types of branding strategies used by firms

Answer 9

Common/family name

Individual brands

Question 10

Distinguish between brand extension and line extension

Answer 10

Brand extension is an increase in the product mix’s breadth

Line extension is an increase in a product lines depth

Question 11

What are the key roles of packaging

Answer 11

Attracts consumer attention
Products stand out from their competition
Promotional tool
Allows the same product to appeal to different markets with different size packaging
Secondary packaging protects the shipment during transit

Question 12

Why are labels important

Answer 12

It is a means of communicating product benefits to consumers by providing information the consumer needs for their purchase decision