EXAM 3 Flashcards
1
Q
What is a product?
A
Everything both favorable and unfavorable that a person receives in an exchange
(Such as: Tangible Good , Service & Idea)
2
Q
Business product
Types of Consumer Products
A
: A product used to manufacture other goods or services to facilitate an organization’s operations, or to resell to offer customers
3
Q
Consumer Product:
Types of Consumer Products
A
A product bought to satisfy an individual personal wants
4
Q
Shopping products
Types of Consumer Products
A
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores
5
Q
Unsought product
Types of Consumer Products
A
A product unknown to the potential buyer or a known product that the buyer does not actively seek.
6
Q
Product item
A
A specific version of a product that can be designated as a distinct offering among an organization products
7
Q
Product Line
A
A group of closely-related product items
8
Q
Product Mix
A
All products that an organization sells
9
Q
Planned Obsolescence
A
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement
10
Q
Types of product modification
A
Quality, functional and style modification
11
Q
why reposition established brands
A
changing demographics, declining sales, change in social environment.
12
Q
Product Line Extension
A
Adding additional products to an existing product line sales to complete more broadly in the industry
13
Q
Brand Name
A
That part of a brand that can be spoken including letters, words and numbers
14
Q
Brand Mark
A
: The elements of a brand that cannot be spoken
15
Q
Brand Equity
A
: The value of company and brand names
16
Q
Global Brand
A
: A brand where at least a third of the earnings come from outside its home country
17
Q
Focus Group
A
The objects ……
18
Q
Screening
A
The first filter in the product development process, which elongates ideas that are inconsistent with the organizational’s new-product strategy or are inappropriate for some other reason.
19
Q
Concept test
A
A test to evaluate a new-product idea, usually before any protypes been created.
20
Q
Brand loyalty
A
consistent preference for one brand over all others
21
Q
Co-branding
A
placing two or more brand names on a product or its package
22
Q
Informational labeling
A
a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase
23
Q
Persuasive labeling
A
a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary
24
Q
Planned obsolescence
A
the practice of modifying products so those that have already been sold become obsolete before they actually need replacement
25
Product line depth
the number of product items in a product line
26
Product mix width
the number of product lines an organization offers
27
Product modification
changing one or more of a product’s characteristics
28
brand
a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products
29
captive brands
a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation
30
convenience product
a relatively inexpensive item that merits little shopping effort
31
express warranty
a written guarantee
32
family branding
marketing several different products under the same brand name
33
generic product name
identifies a product by class or type and cannot be trademarked
34
implied warranty
an unwritten guarantee that the good or service is fit for the purpose for which it was sold
35
individual branding
using different brand names for different products
36
manufacturer’s brand
the brand name of a manufacturer
37
private brand
a brand name owned by a wholesaler or a retailer
38
product line extension
adding additional products to an existing product line in order to compete more broadly in the industry
39
service mark
a trademark for a service
40
shopping product
a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores
41
specialty product
a particular item for which consumers search extensively and are very reluctant to accept substitutes
42
trademark
the exclusive right to use a brand or part of a brand
43
universal product codes (UPCs)
a series of thick and thin vertical lines (bar codes) readable by computerized optical scanners that represent numbers used to track products
44
warranty
a confirmation of the quality or performance of a good or service
45
Diffusion
the process by which the adoption of an innovation spreads
46
Product development
a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
47
Test marketing
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
48
brainstorming
the process of getting a group to think of unlimited ways to vary a product or solve a problem
49
business analysis
the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated
50
commercialization
the decision to market a product
51
development
the stage in the product development process in which a prototype is developed and a marketing strategy is outlined
52
innovation
a product perceived as new by a potential adopter
53
new product
a product new to the world, the market, the producer, the seller, or some combination of these
54
new-product strategy
a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
55
simulated (laboratory) market testing
the presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market
56
simultaneous product development
a team-oriented approach to new-product development
57
Automatic vending
the use of machines to offer goods for sale
58
Department stores
a store housing several departments under one roof
59
Direct marketing (DM)
techniques used to get consumers to make a purchase from their home, office, or other nonretail setting
60
Direct retailing
the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties
61
Discount stores
a retailer that competes on the basis of low prices, high turnover, and high volume
62
Drugstores
a retail store that stocks pharmacy-related products and services as its main draw
63
Full-line discount stores
a discount store that carries a vast depth and breadth of product within a single product category
64
Microtargeting
the use of direct marketing techniques that employ highly detailed data analytics in order to isolate potential customers with great precision
65
Off-price retailers
a retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn’t ask for return privileges
66
Online retailing, or e-tailing
a type of shopping available to consumers with personal computers and access to the Internet
67
Restaurants
a retailer that provides both tangible products—food and drink—and valuable services—food preparation and presentation
68
Retailing
all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
69
Self-service technologies (SST)
technological interfaces that allow customers to provide themselves with products and/or services without the intervention of a service employee
70
Shop-at-home television networks
a specialized form of direct response marketing whereby television shows display merchandise, with the retail price, to home viewers
71
Shopper marketing
understanding how one’s target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to generate sales or other positive outcomes
72
Specialty stores
a retail store specializing in a given type of merchandise
73
Supercenters
a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise
74
Supermarkets
a large, departmentalized, self-service retailer that specializes in food and some nonfood items
75
Telemarketing
the use of the telephone to sell directly to consumers
76
Used goods retailers
a retailer whereby items purchased from one of the other types of retailers are resold to different customers
77
atmosphere
the overall impression conveyed by a store’s physical layout, décor, and surroundings
78
back stock
inventory held in reserve for potential future sale in a retailer’s storeroom or stockroom
79
beacons
a device that sends out connecting signals to customers’ smartphones and tablets in order to bring them into a retail store or improve their shopping experience
80
big data analytics
the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior
81
brand cannibalization
the reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product by another brand
82
category killer
a large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category
83
chain store
a store that is part of a group of the same stores owned and operated by a single organization
84
click-and-collect
the practice of buying something online and then traveling to a physical store location to take delivery of the merchandise
85
convenience store
a miniature supermarket, carrying only a limited line of high-turnover convenience goods
86
destination store
a store that consumers purposely plan to visit prior to shopping
87
direct mail
the delivery of advertising or marketing material to recipients of postal or electronic mail
88
factory outlet
an off-price retailer that is owned and operated by a manufacturer
89
floor stock
inventory displayed for sale to customers
90
franchise
a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee
91
franchisee
an individual or business that is granted the right to sell another party’s product
92
franchisor
the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product
93
gross margin
the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted
94
independent retailer
a retailer owned by a single person or partnership and not operated as part of a larger retail institution
95
layout
the internal design and configuration of a store’s fixtures and products
96
nonstore retailing
shopping without visiting a store
97
retail channel omnification
the reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs
98
retailers
a channel intermediary that sells mainly to consumers
99
retailing mix
a combination of the six Ps—product, promotion, place, price, presentation, and personnel—to sell goods and services to the ultimate consumer
100
shopper analytics
searching for and discovering meaningful patterns in shopper data for the purpose of fine-tuning, developing, or changing market offerings
101
specialty discount stores
a retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover
102
warehouse club
a large, no-frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee
103
11. Which of the following statements is true of product lines?
A. An advantage of a narrow product line is the ability to have a greater gap between price points.
B. Product line refers to consumer products; product mix refers to industrial products.
C. An advantage of broad product lines is the increased likelihood of gaining access to large retail chain distributions.
D. A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.
E. A broad product line reduces the need for products to be linked by usage or customer base.
D. A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.
104
12. The most obvious function of packaging is to:
is to contain products that are liquid, granular, or otherwise divisible.
105
13. Product line depth refers to the number of:
of versions offered of each product in the line.
106
15. Torque Roz, an automobile company, uses a unique tire design on its vehicles. A rival company was found copying the exact design in its automobiles. Torque Roz was able to file a case against the rival company about this issue and win the lawsuit. In this scenario, Torque Roz's unique tire design is a registered _____.
trademark
107
16. Dunchen Moo, a manufacturer of dairy products, sells milk powders, flavored whipped cream, and yogurts. It markets a number of yogurts, including Dunchen All Natural, Dunchen Fruit on the Bottom, Dunchen Light & Fit, DunActive, and Dun-o-nino. The large variety of yogurts sold by the Dunchen brand is collectively an example of a _____.
Product Line
108
17. _____ occurs when two brands receiving equal treatment borrow from each other's brand equity.
cooperative branding
109
18. Which of the following statements is true of an implied warranty?
It comes with the sale of every product under the Uniform Commercial Code.
110
19. Which of the following statements is true of trademarks?
A. Trademarks must always be registered in their home country only.
B. In the U.S., common law protects the rights of the owners of brand names and trademarks.
C. The Lanham Act requires that all trademarks be registered.
D. Registering under the Lanham Act is often a first step to protecting a trademark to be used in foreign markets.
E.Both B and D are true.
E.Both B and D are true.
111
20. Which of the following statements is true of a specialty product?
a. Purchasers are usually bargain hunters who are not willing to pay much.
b. Purchasers begin shopping with complete information of the desired product.
c. Purchasers tend to exert minimal effort to obtain the desired product.
d. Purchasers generally accept substitutes if the desired product is unavailable.
.b. Purchasers begin shopping with complete information of the desired product.
112
21. A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry.
.product line extension
113
22. Which of the following statements is true of an express warranty?
A. It contains an unwritten guarantee about the performance of a product.
B. It ranges from simple statements to extensive documentswritten in technical language.
C. It gives the impression of environmental friendliness to a product.
D. It prohibits other firms from using a brand or part of a brand without permission.
B.
It ranges from simple statements to extensive documentswritten in technical language.
114
27. In the context of diffusion of innovation, a dominant characteristic of innovators is tradition?
TRUE OR FALSE?
FALSE
115
28. Roger, an affluent college graduate, buys gadgets on the day of their launch in the market. He reads expert reviews on the Internet, and he is not influenced by the opinions of his family and friends while choosing products. Roger is most likely to belong to the category of _____ in the context of diffusion of innovation.
innovators
116
30. What are the disadvantages of test marketing?
Expensive, Time consuming, Competitive Awareness & Inconclusive Results
117
31. Steven, a construction worker, tends to buy a new gadget if most of his friends have them. He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions. It can be inferred that Steven belongs to the category of _____ in the diffusion of innovation.
the late majority
118
32. What are the similarities between early adopters and the early majority?
Likely to collect more information and evaluate more brands
119
33. Which of the following statements is true of the maturity stage of the product life cycle (PLC)?
Marketing attention is directed toward holding market share through further product differentiation and finding new buyers.
120
34. In the context of the product life cycle, a long-run drop in a product's sales signals the beginning of what stage?
decline stage
A long-run drop in sales signals the beginning of the decline stage. The rate of decline is governed by how rapidly consumer tastes change or substitute products are adopted.
121
36. In a franchise situation, who pays for the right to use a brand name, product, and methods of operation.
franchisee
122
37. Asif, a member of a local baseball team, broke his bat during a practice match. With the final match scheduled for the next day, Asif urgently required a new bat. Therefore, he placed an order on Duke.com, an online portal for sports goods, and he dropped in at its nearest physical store to pick up his order. This is an example of the use of _____.
click-and-collect
123
38. A _____ is a type of discount store that carries a vast depth and breadth of product within a single product category.
Full Line Discount Store
124
39. A(n) _____ is a retail business where the operator is granted a license to operate and sell a product under the brand name of a larger supporting organizational structure.
franchise
125
40. Which of the following statements is true of click-and-collect?
A.It requires representatives to sell products doortodoor, in offices, or at inhome sales parties.
B.It employs outbound and inbound telephonecontacts to sell directly to customers.
C.It enables consumers to make their purchases online and pick up their orders from physical stores.
D.It allows customers to shop over the Internet andhave items delivered directly to their door.
C. It enables consumers to make their purchases online and pick up their orders from physical stores.
126
41. A _____ is the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product.
.Franchisor
127
42. _____ is a form of nonstore retailing that entails the use of machines to offer goods for sale.
Automatic vending
128
43. What are the differences between off-price retailers and specialty shops?
Off-price retailers focus on lean inventory management, while specialty shops are supported by an agile approach to inventory.
129
44. The Hunt, a liquor store, is famous for its unique and extensive collection of alcoholic beverages. Its employees possess up-to-date knowledge of the liquor available in the store, which allows them to assist customers in their purchasing decisions. The Hunt is an example of a _____ type of retailer.
.specialty store
130
45. Lily's Apparel, a renowned apparel store, focuses on Gen Y customers and provides them with a customized clothing experience. Lily's Apparel has defined its target market by _____.
psychographic characteristics
131
46. What is brand cannibalization? Why is it dangerous to the retailer?
Retailers incur financial loss from discounting the surplus inventory of the cannibalized brand.
First, retailers incur significant expense in executing the promotion itself.
Second, the promotion creates inaccurate sales forecasts for both the promoted and cannibalized products, leading to stockouts of the promoted brand and financial losses from discounting surplus inventory of the cannibalized brand.
132
48. _____ refers to the number of product lines an organization offers.
Product mix width
