Product, Branding, and Packaging Decisions - Chapter 9

Question 1

Core customer value

Answer 1

The basic problem-solving benefits that consumers are seeking

Question 2

Associated services / augmented product

Answer 2

The non-physical attributes of the product, including product warranties, financing, product support, and after-sale service

Question 3

Consumer products

Answer 3

Products and services used by ppl for their personal use

Question 4

Specialty goods/services

Answer 4

Products/services toward which customers show such a strong pref that they will expend considerable effort to search for the best supplier

Question 5

Shopping goods/services

Answer 5

Products/services which consumers will spend a fair amt of time comparing alternatives

Question 6

Convenience goods/services

Answer 6

Products/services for which the consumer is not willing to spend any effort to evaluate prior to purchase

Question 7

Unsought products/services

Answer 7

Products consumers either don’t normally think of buying or don’t know abt

Question 8

Product mix or product assortment

Answer 8

Complete set of all products offered by a firm

Question 9

Product category

Answer 9

An assortment of items that the customer sees as reasonable substitutes for one another

Question 10

Brands

Answer 10

The names, terms, designs symbols or any other features that identify one seller’s good or service as distinct from those of other sellers

Question 11

Product mix breadth (sometimes ‘variety’)

Answer 11

Rep the # of product lines offered by the firm

Question 12

Product line depth

Answer 12

The # of product categories within a product line

Question 13

Stock keeping units (SKUs)

Answer 13

Smallest unit available for inventory control

Question 14

Why do firms add new product lines?

Answer 14

To capture new or evolving markets, increase sales, and compete in new venues

Sometimes necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities

Question 15

What does branding do for a product?

Answer 15

Provides a way for a firm to differentiate its product offerings from those of its competitors
Add value to product/services beyond physical & functional characteristics

Question 16

Why do known firms spend less?

Answer 16

Well-known brands can spend relatively less on marketing costs than firms w little-known brands bc the brand sells itself

Question 17

Brand equity

Answer 17

The sets of assets and liabilities linked to a brand that add to or subtract from the value provided by the product/service.

Question 18

What do firms need to do to keep positive brand image

Answer 18

Brand health must be actively managed

Question 19

Brand awareness

Answer 19

Measures how many consumers in a market are familiar w the brand and what it stands for, and have an opinion abt the brand.

The more customers are aware of or familiar w a brand, the easier their decision-making process will be

Question 20

What do firms need to beware of with their brand names?

Answer 20

must be vigilant in protecting their brand names
If they are used so generically, over time, the brand itself can lose its trademark status

Question 21

Perceived value

Answer 21

The relationship between a product/service’s benefits and its cost

• Customers usually determine the offering’s value in the relationship to that of its close competitors.
• If they feel an inexpensive brand is abt same quality as premium brand, perceived value of the chapter choice is high

Question 22

Brand associations

Answer 22

Reflects the mental links that consumers make between a brand and its key product attributes, such as a logo, etc.

Question 23

Brand personality

Answer 23

Refers to a set of human characteristics associated w a brand that has symbolic or self-expressive meanings for consumers

Question 24

Brand loyalty

Answer 24

Occurs when a consumer buys the same brand’s product or service again and again over time

Brand loyal customers are an important source of value for firms
Not always easy to achieve. Companies may use brand promise to attract and retain customers

Question 25

Manufacturer brands

Answer 25

Owned and managed by the manufacturer

Question 26

Private-label brands (store brands)

Answer 26

Brand that are owned and managed by retailers

Question 27

Generic

Answer 27

Products sold without brand names

Question 28

Family brand

Answer 28

A firms also can use its corporate name to brand similar product lines and products

Question 29

Individual brand

Answer 29

The use of individual brand names for each of a firm’s products

Question 30

Brand extension

Answer 30

The use of the same brand name for new products being introduced to the same or new markets

Question 31

Brand dilution

Answer 31

When the brand extension adversely affects consumer perceptions abt the attributes the core brand is believed to hold

Question 32

What should be done to prevent negative consequences of brand extensions

Answer 32

• Marketers evaluate the fit between product class of core brand and the extension
• Evaluate consumer perceptions of the attributes of core brand and seek out similar attributes for the extension, brand specific associations are important for extensions
• Refrain from extending the brand name to many products and product categories to avoid diluting the brand and damaging brand equity
• Consider whether brand extension will be distanced from core brand, especially if firm wants to use some but not all of the existing brand associations.

Question 33

Cobranding

Answer 33

Practice of marketing 2 or more brands together, on the same package or promotion

Question 34

Brand licensing

Answer 34

Contractual arrangement between firms, whereby 1 firm allows another to use its name etc in exchange for a negotiated fee