Chapter 8 Terms

Question 1

Attributes

Answer 1

Include features, functions, benefits, and uses of a product. Marketers view products as a bundle of attributes that includes the packaging, brand name, benefits, and supporting features in addition to a physical good

Question 2

Good

Answer 2

A tangible product that we can see, touch, smell, hear, or taste

Question 3

Core Product

Answer 3

All the benefits the product will provide for consumers or business customers

Question 4

Actual Product

Answer 4

The physical good or the delivered service that supplies the desired benefit

Question 5

Augmented Product

Answer 5

The actual product plus other supporting features such as a warranty, credit, delivery, installation, and repair service after the sale

Question 6

Durable Goods

Answer 6

Consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances

Question 7

Nondurable Goods

Answer 7

Consumer products that provide benefits for a short time because they are consumed (such as food) or are no longer useful (such as newspapers)

Question 8

Convenience Product

Answer 8

A consumer good or service that is usually low priced, widely available, and purchased frequently with a minimum of comparison and effort

Question 9

Consumer Packaged Good (CPG)

Answer 9

A low-cost good that is consumed quickly and replaced frequently

Question 10

Shopping Products

Answer 10

Goods or services for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase

Question 11

Specialty Products

Answer 11

Goods or services that have unique characteristics and are important to the buyer and for which he or she will devote significant effort to acquire

Question 12

Unsought Products

Answer 12

Goods or services for which a consumer has little awareness or interest until the product or a need for the product is brought to his or her attention

Question 13

Equipment

Answer 13

Expensive goods that an organization uses in its daily operations that last for a long time

Question 14

Maintenance, Repair, and Operating Products (MRO)

Answer 14

Goods that a business customer consumes in a relatively short time

Question 15

Raw Materials

Answer 15

Products of the fishing, lumber, agricultural, and mining industries that organizational customers purchase to use in their finished products

Question 16

Processed Materials

Answer 16

Products created when firms transform raw materials from their original state

Question 17

Component Parts

Answer 17

Manufactured goods or subassemblies of finished items that organizations need to complete their own products

Question 18

Innovation

Answer 18

A product that consumers perceive to be new and different from existing products

Question 19

Continuous Innovation

Answer 19

A modification of an existing product that sets one brand apart from its competitors

Question 20

Dynamically Continuous Innovation

Answer 20

A change in an existing product that requires a moderate amount of learning or behavior change

Question 21

Discontinuous Innovation

Answer 21

A totally new product that creates major changes in the way we live

Question 22

Research and Development (R&D)

Answer 22

A well-defined and systematic approach to how innovation is done within the firm

Question 23

New Product Development

Answer 23

The phases by which firms develop new products, including idea generation, product concept development and screening, marketing strategy development, business analysis, technical development, test marketing, and commercialization

Question 24

Idea Generation

Answer 24

A phase of product development in which marketers use a variety of sources to come up with great new product ideas that provide customer benefits and that are compatible with the company mission

Question 25

Product Concept Development & Screening

Answer 25

The second step of product development in which marketers test product ideas for technical and commercial success

Question 26

Technical Success

Answer 26

Indicates that a product concept is feasible purely from the standpoint of whether or not it is possible to physically develop it, regardless of whether it is perceived to be commercially viable

Question 27

Commercial Success

Answer 27

Indicates that a product concept is feasible from the standpoint of whether the firm developing the products believes there is or will be sufficient consumer demand to warrant its development and entry into the market

Question 28

Business Analysis

Answer 28

The step in the product development process in which marketers assess a product’s commercial viability

Question 29

Technical Development

Answer 29

The step in the product development process in which company engineers refine and perfect a new product

Question 30

Market Test (Test Marketing)

Answer 30

Testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter

Question 31

Simulated (Virtual) Market Test

Answer 31

Application of special computer software to imitate the introduction of a product into the marketplace allowing the company to see the likely impact of price cuts and new packaging—or even to determine where in the store it should try to place the product

Question 32

Commercialization

Answer 32

The final step in the product development process in which a new product is launched into the market

Question 33

Product Adoption

Answer 33

The process by which a consumer or business customer begins to buy and use a new good, service, or idea

Question 34

Diffusion

Answer 34

The process by which the use of a product spreads throughout a population

Question 35

Innovators

Answer 35

The first segment (roughly 2.5 percent) of a population to adopt a new product

Question 36

Early Adopters

Answer 36

Those who adopt an innovation early in the diffusion process but after the innovators

Question 37

Early Majority

Answer 37

Those whose adoption of a new product signals a general acceptance of the innovation

Question 38

Late Majority

Answer 38

The adopters who are willing to try new products when there is little or no risk associated with the purchase, when the purchase becomes an economic necessity, or when there is social pressure to purchase.

Question 39

Laggards

Answer 39

The last consumers to adopt an innovation

Question 40

Relative Advantage

Answer 40

The degree to which a consumer perceives that a new product provides superior benefits

Question 41

Compatibility

Answer 41

The extent to which a new product is consistent with existing cultural values, customs, and practices

Question 42

Complexity

Answer 42

The degree to which consumers find a new product or its use difficult to understand

Question 43

Trialability

Answer 43

The ease of sampling a new product and its benefits

Question 44

Observability

Answer 44

How visible a new product and its benefits are to others who might adopt it