Chapter 8: Products, Services, and Brands: Building Customer Value

Question 1

Product

Answer 1

• anything that can be offered to a market
• for attention, acquisition, use, or consumption
• might satisfy a want and need

Question 2

Service

Answer 2

• an activity, benefit, or satisfaction offered for sale
• essentially intangible
• does not result in the ownership of anything

Question 3

Customer product

Answer 3

bought by final consumers for personal consumption

Question 4

Convenience product

Answer 4

• customers usually buy frequently, immediately

- with minimal comparison and buying effort

Question 5

Shopping product

Answer 5

the customer in the process of selecting and purchasing

usually compares on such attributes: suitability, quality, price, style

Question 6

Specialty product

Answer 6

unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

• do not compare specialty products
• luxury goods: Rolex watches or fine crystal

Question 7

Unsought product

Answer 7

consumer either does not know about or knows about but does not normally consider buying.
- require a lot of advertising, personal selling, other marketing efforts

Question 8

Industrial product

Answer 8

a product bought by individuals and organizations for further processing or for use in conducting a business

• materials and parts
• capital items
• supplies and services

Question 9

Social marketing

Answer 9

the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society

Question 10

Product quality

Answer 10

the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

Question 11

Individual Product Decisions

Answer 11

Product attributes -> Branding -> Packaging -> Labelling -> Product support services

Question 12

Total Quality Management (TQM)

Answer 12

an approach in which all of the company’s people are involved in constantly improving the quality of products, services, and business processes.

Question 13

Performance quality

Answer 13

the product’s ability to perform its functions

Question 14

Conformance quality

Answer 14

freedom from defects and consistency in delivering a targeted level of performance

Question 15

Product features

Answer 15

competitive tool for differentiating the company’s product from competitors’ products

Question 16

Brand

Answer 16

a name, term, sign, symbol, or design, or a combination of these
- identifies the products/ services of one seller or group of sellers and differentiates them from those of competitors

Question 17

Product style and design

Answer 17

• design is a larger concept than style

- style can be eye catching or yawn producing

Question 18

Packaging

Answer 18

the activities of designing and producing the container or wrapper for a product

Question 19

Labelling

Answer 19

• range from simple tags attached to products to complex graphics that are part of the packaging
• identifies the product or brand
• promote the brand
• support the brand’s positioning and add personality to the brand

Question 20

Product Support Services

Answer 20

• Customer service = element of product strategy

- important part of customer’s overall brand experience

Question 21

Product line

Answer 21

a group of products

• closely related because they function in a similar manner
• sold to the same customer groups
• marketed through the same types of outlets
• fall within given price ranges

Question 22

Product mix (or product portfolio)

Answer 22

the set of all product lines and items that a particular seller offers for sale

Question 23

Four Service Characteristics

Answer 23

1. Intangibility
2. Inseparability
3. Variability
4. Perishability

Question 24

1. Intangibility

Answer 24

Services cannot be seen, tasted, felt, heard, or smelled before purchase

Question 25

2. Inseparability

Answer 25

Services cannot be separated from their providers

Question 26

3. Variability

Answer 26

Quality of services depends on who provides them and when, where, and how

Question 27

4. Perishability

Answer 27

Services cannot be stored for later sale or use

Question 28

Service Profit chain

Answer 28

The chain that links service firm profits with employee and customer satisfaction - if we are employees, we are happy, customers are happy, we make money :)

Question 29

3 TYPES OF SERVICE MARKETING

Answer 29

Company - (EXTERNAL MARKETING) - Customers Customers - (INTERACTIVE MARKETING) - Employees Employees - (INTERNAL MARKETING) - Company

Question 30

Internal marketing

Answer 30

Orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction - Orientation - Training - Motivation

Question 31

Interactive marketing

Answer 31

training service employees in the fine art of interacting with customers to satisfy their needs * service quality depends heavily on the quality of the buyer-seller interaction during the service encounter - Service differentiation - Service quality - Service productivity

Question 32

Brand equity

Answer 32

The differential effect that knowing the brand name has on customer response to the product or its marketing - a powerful brand has high brand equity

Question 33

Brand value

Answer 33

The total financial value of a brand

Question 34

Major Brand Strategy Decisions

Answer 34

1. Brand positioning: Attributes, Benefits, Beliefs and values 2. Brand name selection: Selection, Protection 3. Brand sponsorship: Manufacturer's brand, Private brand, Licensing, Co-branding 4. Brand development: Line extensions, Brand extensions, Multibrands, New brands

Question 35

Store brand (or private brand)

Answer 35

A brand created and owned by a reseller of a product or service

Question 36

Co-branding

Answer 36

The practice of using the established brand names of two companies on the same product

Question 37

The Service Profit chain consists of five links

Answer 37

1. Internal service quality 2. Satisfied and productive service employees 3. Greater service value 4. Satisfied and loyal customers 5. Healthy service profits and growth

Question 38

Managing service differentiation

Answer 38

allows the firm to divert the focus on price, by developing a unique offer, delivery or image

Question 39

Managing service quality

Answer 39

enables a service firm to differentiate itself by delivering consistently higher quality than its competitors provide customer retention service recovery

Question 40

Managing service productivity

Answer 40

refers to the cost side of marketing strategies for service firms. the primary tools for impacting it are: - employee hiring and training - people doing more and better - service quantity and quality - adjusting the product - adopt technology - new tools to help

Question 41

Hospitality Challenge - Dynamic Marketplace

Answer 41

- Demand is always fluctuating ◦ General environment (economical, political influences) ◦ Segment behavior ◦ Seasonal, midweek, weekend ◦ Holidays, professional requirements, religions ◦ Changing demographics, psychographics - Variety of customers – multiple market segments ◦ Different personal experiences and knowledge ◦ Different expectations to satisfy

Question 42

Hospitality Challenge - Dynamic Marketplace

Answer 42

- Demand is always fluctuating ◦ General environment (economical, political influences) ◦ Segment behavior ◦ Seasonal, midweek, weekend ◦ Holidays, professional requirements, religions ◦ Changing demographics, psychographics - Variety of customers – multiple market segments ◦ Different personal experiences and knowledge ◦ Different expectations to satisfy

Question 43

External Marketing

Answer 43

just the beginning for service organizations