product

Question 1

product

Answer 1

A good, service or idea offered to the market for exchange
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or a want

Question 2

what is a product

Answer 2

To the potential buyer a product is a complex cluster of value satisfactions

Question 3

services

Answer 3

heterogeneity: concerns with the potential for high variability in the performance of services
intangibility: can’t be felt
inseparability: produced and consumed simultaneously
perishability: services can not be saved

Question 4

total product concept (ChEAP)

Answer 4

-core
fundemental benefit 
-expected
attributes that deliver core benefit 
-augmented additional benefits beyond basic need
-potential
what is possible should it be desired

Question 5

Classification of consumer products

Answer 5

Convenience
– Frequently bought, with minimum of buying effort (e.g. FMCG)
Shopping
– Buying usually involves comparison of alternatives (e.g. clothing,
furniture)
Specialty
– Unique product characteristics -> special purchase effort (e.g. cars)
Unsought
– Customer has little knowledge or interest (e.g. life insurance)

Question 6

Product relationships

Answer 6

 Product mix (assortment): the set of all products that
an organisation makes available to customers
 Product line: a set of closely related product items
 Product item: an individual product within a product line

Question 7

Products characteristics

Answer 7

 What differentiates one product from another?
– Features
– Packaging and labelling – Branding
 Can be part of either the actual or augmented element of the product

Question 8

branding

Answer 8

collection of symbols such as name, logo, slogan intended to create an image in the mind of customer that differentiates from other competitors

• brand name
• trademark

Question 9

what is a brand

Answer 9

a perception frame from experiences, communication messages
promise of vale
a competitive short cut

Question 10

new product development process

Answer 10

idea generation
idea screening
concept development and testing
marketing strategy
business analysis
product development
test marketing
commercialisation

Question 11

diffusion of innovators

Answer 11

2.5% innovators
13.5% early adopters
34% early majority
34% late majority
16% laggards

Question 12

rate of adoption

Answer 12

 Relative advantage  Compatibility
 Complexity
 Trialability
 Observability