Domain 5: The Offering--Product and Service Flashcards
Anything that can be offered to a market that might satisfy a want or need.
Product
A product and service identification code for a store or product, often displayed as a machine-readable bar code that helps track the item for inventory.
Stock-keeping unit (SKU)
A company product or service that is most directly related to its core competencies.
Core product
An upgrade or revision to an existing product through additional features or functionality.
Enhanced product
Things that are physical, that is, items that can be touched, seen, heard or smelled.
Tangibility
Assurance or probability that an equipment, machine, or material will have a relatively long continuous useful life, without requiring an inordinate degree of maintenance.
Durability
A good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use.
Durable product
AKA soft goods (consumables) are the opposite of durable goods. They may be defined either as goods that are immediately consumed in one use or ones that have a lifespan of less than three years.
Nondurable product
A consumer item that is widely available and purchased frequently with minimal effort. Because these can be found readily, it does not typically involve an intensive decision-making process.
Convenience goods
Usually requires a more involved selection process than convenience goods. A consumer usually compares a variety of attributes, including suitability, quality, price, and style.
Shopping goods
Item that is extraordinary or unique enough to motivate people to make an unusual effort to get it. Examples are designer clothes, exotic perfumes, limited-edition cars, stunning designs, works of famous painters.
Specialty goods
Goods that the consumer does not know about or does not normally think of buying, and the purchase of which arises due to danger or the fear of danger and lack of desire. The classic examples are funeral services, encyclopedias, fire extinguishers and reference books.
Unsought goods
The matter from which a thing is or can be made.
Materials
A piece or segment of something such as an object, activity, or period of time, which combined with other pieces makes up the whole.
Parts
Supplies consumed in the production process but which do not either become part of the end product or are not central to the firm’s output.
MRO supplies (maintenance, repair, operating)
Tangible assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services in order to produce consumer goods and goods for other businesses.
Capital goods
The value a consumer sees in a finished product.
Form utility
How well something, such as a product, service or a system, meets a specified standard.
Conformance
Ability of a damaged or failed equipment, machine or system to be restored to acceptable operating condition within a specified period (repair time).
Reparability
Characteristics or elements combined and expressed in a particular (often unique) and consistent manner.
Style
A group of related products under a single brand sold by the same company.
Product line
Also known as product assortment, refers to the total number of product lines a company offers to its customers.
Product mix
Based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).
Product life cycle (PLC)
A desirable trend characterized with lots of enthusiasm and energy over a short period of time.
Fad
A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. In addition, it can also include the activities that are used to increase the market share of a particular product or service.
Market penetration
A product pricing strategy by which a firm charges the highest initial price that customers will pay and lowers it over time. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price-sensitive segment.
Market (price) skimming
These products are truly the first of their kind and establish an entirely new market. New-to-the-world products are generally a result of scientific and technological innovation.
New-to-the-world product
The process of making meaningful product changes that result in new customers or increased benefits realized by existing customers.
Product improvement
The use of an established product brand name for a new item in the same product category.
Product line extension
The process used by companies to reduce their costs and increase their profits. Depending on a company’s services or product, the strategies can vary. Every decision in the product development process affects cost.
Cost reduction
When a company fails to stop a bad product idea from moving into product development.
Go-to-market mistake
This happens when a good idea is prematurely eliminated during the screening process.
Stop-to-market mistake
A decision support and planning tool that projects the likely financial results and other business consequences of an action or investment.
Business case analysis
Occurs through a five–step decision-making process. It occurs through a series of communication channels over a period of time among the members of a similar social system. Ryan and Gross first identified adoption as a process in 1943. Rogers’ five stages (steps): awareness, interest, evaluation, trial, and adoption are integral to this theory.
Innovation diffusion process
A name, term, design, symbol, or other feature that distinguishes an organization or product from its rivals in the eyes of the customer.
Brand
A long-term plan for the development of a successful brand in order to achieve specific goals. A well-defined and executed brand strategy affects all aspects of a business and is directly connected to consumer needs, emotions, and competitive environments.
Brand strategy
How a business presents itself to, and wants to be perceived by, its consumers.
Brand identity
Refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent.
Brand equity
The degree of consumer awareness of a brand and its related products.
Brand awareness
A consumer behavior pattern where consumers become committed to a particular brand, and make repeat purchases over time.
Brand loyalty
The customer’s perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives.
Perceived quality
Extent to which a particular brand calls to mind the attributes of a general product category. For example, asking for ‘Pampers’ when one wants disposable diapers.
Brand association
The consistent signals that make it quite easier for the consumers to recognize and identify the brand and recall the associations related to the consumer and the brand.
Brand assets
Refers to a marketing strategy that promotes a family of products or services under an umbrella brand.
Family branding
A strategy by which a company uses the same brand to enter into a completely unrelated product segment. The company leverages on the brand equity and success of its existing brand to introduce the new product to increase market acceptance.
Category extension
Brand marketed throughout a national market. These are owned and promoted usually by large manufacturers.
National brands
Often referred to as a generic product, is manufactured or acquired by a particular firm for exclusive sale to consumers.
Store brand
A marketing strategy that utilizes multiple brand names on a good or service as part of a strategic alliance. Also known as a brand partnership.
Cobranding
A document that provides the greatest amount of protection to the purchaser of property as it pledges or warrants that the owner owns the property free and clear of any outstanding liens, mortgages, or other encumbrances against it. With this type, the grantor would be responsible for a breach of any of these conveyed warranties and guarantees – even if the breach occurred without their knowledge or during a period when the grantor did not own the property.
General warranties
A deed in which the grantor warrants only against defects occurring during their ownership.
Special warranties
A commercial enterprise that provides work performed in an expert manner by an individual or team for the benefit of its customers. The typical business of this type provides intangible products, such as accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, and transportation services.
Service
An economy where the primary economic activities revolve around providing a service rather than manufacturing goods.
Service economy
Produces intangible goods, more precisely services instead of goods, and according to the U.S. Census Bureau, it comprises various service industries including warehousing and truck transportation services, information sector services, commodities, securities and other investment services, professional, technical and scientific services, waste management services, health care and social assistance services, and arts, entertainment, and recreation services.
Service sector
A meta-theoretical framework for explaining value creation, through exchange, among configurations of actors. The underlying idea of S-D logic is that humans apply their competences to benefit others and reciprocally benefit from others’ applied competences through service-for-service exchange.
Service dominant logic
Services are not physical and cannot be “possessed.” Because they can’t be seen, touched, or made tangible in some way, assessing their quality and value is difficult.
A services client will never know how good the service is until after he receives it. In some cases, it actually may be months or years before a trigger event occurs to activate the service, at which time the client hopes to experience the promised service quality (e.g., an IT crisis triggers service, or an accident initiates an insurance claim).
Intangibility
Expresses the notion that a service can not be separated from the service provider.
Inseparability
The notion that a service may vary in standard or quality from one provider to the next or from occasion to the next. Also referred to as Heterogeneity.
Variability
Expresses the notion that a service cannot be made in advance and stored.
Perishability
The market interest for a product that shows variations over time. Purchasing activity increases and decreases because of direct and/or indirect influences.
Fluctuating demand
Establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity. The links in the chain (which should be regarded as propositions) are as follows: Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, and productive employees. Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver results to customers.
Service-profit chain
Employees are treated as “internal customers” who must be convinced of a company’s vision and worth just as aggressively as “external customers.” The goal of this marketing is to align every aspect of a company’s internal operations to ensure they are as capable as possible of providing value to customers. If a company can operate in a coordinated and standardized way, that company can provide a more consistent experience to their customers.
Internal marketing
A way of doing business with your customer in a way that provides a positive customer experience before and after the sale in order to drive repeat business, customer loyalty and profits.
Customer-centric
The orientation of an organization toward serving its clients’ needs.
Customer focus
The total perceived benefits a customer expects from a company’s product or service.
Customer expectations
A specialized form of customer service in which companies focus on what is deemed to be best for the customer. It is a change in a company’s culture that is supported by customer-focused customer service and marketing techniques.
Customer advocacy
Search products or services have attributes customers can readily evaluate before they purchase. A hotel room price, an airline schedule, television reception, and the quality of a home entertainment system can all be evaluated before a purchase is made.
Search attributes
Experience products or services can be evaluated only after purchase, such as dinner in a new restaurant, a concert or theater performance, a new movie, or a hairstyle. The customer cannot pass judgment on value until after he or she has experienced the service.
Experience attributes
Credence products or services have attributes buyers cannot confidently evaluate, even after one or more purchases. Thus, buyers tend to rely on the reputation of the brand name, testimonials from someone they know or respect, service quality, and price. Credence products and services include health care; legal, accounting, advertising, consulting, and IT services; baldness cures; pension, financial, and funeral services; and even pet food (since you have to infer if your pet likes it or not). Credence services are more likely than other types to be customized, making them difficult to compare to other offerings.
Credence attributes
Occupations in the tertiary sector of the economy requiring special training in the arts or sciences. Some of these require holding professional licenses such as architects, accountants, engineers, doctors, and lawyers.
Professional services
Surprising a customer by exceeding his or her expectations and thus creating a positive emotional reaction. This emotional reaction leads to word of mouth.
Customer delight
Everyone likes to feel special and customers always want to feel that their dollars matter. Nothing says “I value you” better than when companies take the time to look for ways to personally surprise their customers. This changes behavior, need not be expensive, turbocharges emotions, and fuels passionate relationships.
Delightful surprises
An assessment of how well a delivered service conforms to the client’s expectations.
Service quality
Transactional interactions in which one person (e.g., a vendor, office clerk, travel agent) provides a service or good (e.g., a product, an appointment, airline tickets) to another person.
Service encounter
The moment when a customer/user interacts with a brand, product or service to form or change an impression about that particular brand, product or service.
Moment of truth (MOT)
Helps to identify the gaps between the perceived service qualities that customers receive and what they expect.
Gap Model of Service Quality
The difference between consumer expectations and management perceptions of consumer expectations
First gap of service quality
The difference between management’s perceptions of consumer expectations and service quality specifications.
Second gap of service quality
The difference between service quality specification and the service actually delivered.
Third gap of service quality
The difference between service delivery intention and what is communicated about the service to customers.
Fourth gap of service quality
The difference between the actual performance and the customer perception of the service.
Fifth gap of service quality
Converting a previously dissatisfied customer into a loyal customer.” It is the action a service provider takes in response to service failure. By including also customer satisfaction into the definition, this is a thought-out, planned, process of returning aggrieved/dissatisfied customers to a state of satisfaction with a company/service
Service recovery
Service performance that fails to meet a customer’s expectations.
Service failure
Products having physical existence and/or form, or discernible through one or more senses.
Tangibles
