Product (Lectures 6,7)

Question 1

What is product?

Answer 1

Anything that can be offered in a market for consumption, attention, acquistituin or use that can satisfy a want or need

Question 2

Products are bundles of ______ in the form of _____ and _______

Answer 2

Bundles of benefits in the form of goods and services

Question 3

What are services?

Answer 3

A form of product that consists of benefits, activities or satisfactions that are essentially intangible. Results in no ownership of something.

Question 4

What is a pure tangible good?

Answer 4

You can physically own it and consume it e.g. soap or something

Question 5

What are pure services?

Answer 5

Most of the offer is service e.g. prostitute

Question 6

How are customer experiences important?

Answer 6

Helps firms to differentiate their goods and services from other firms, attempting to create an atmosphere that enhances the shopping experience

Question 7

What are the three levels of products and services?

Answer 7

1. Core customer value: What is the customer really buying?
2. Actual product: The actual form in which the product was purchased
3. Augmented product: Additional services and benefits in addition to core and and actual product

Most competition revolves around augmented products nowadays.

Question 8

What are the five characteristics of ‘actual products’?

Answer 8

Packaging, quality level, features, brand name, and styling (PQFBS)

Question 9

What are the two broad categories of product classification?

Answer 9

Consumer products and industrial products. Difference is the purpose by which you purchase the product.

Question 10

What are consumer products?

Answer 10

Products bought by final consumers for personal use or consumption e.g. dakimakura

Question 11

What are the four categories in which you can classify consumer products?

Answer 11

• Convenience products: Buys frequently and minimum with minimum comparison and buying effort e.g. milk, bread, newspapers
• shopping products: In the process of buying, usually compares suitability, quality, price, and style e.g. Rin or Saber figurine, then you go with Rin in comparing
• specialty products: You make a special effort to buy these products because of unique characteristics or brand identification e.g. cars, watches, computers, etc. This is more relative to the consumer.
• unsought products: either you don’t know or don’t care e.g. Asuna figurine

Question 12

What are industrial products?

Answer 12

Goods for use in conducting a business

Question 13

What are the four categories in which you can classify industrial products?

Answer 13

• Materials and parts: raw materials, etc - enters final goods
• Capital items: Installations like buildings and equipment that aids in production process -> enters finished product partly but not part of final product
• Supplies and services: convenience products, like toilet paper for employees and shit ( get it, toilet…shit) - doesn’t enter final product at all (you better hope so)
• Business services: maintenance and business advisory services, usually under contract