Ch. 7 - Product and Brands Flashcards
(47 cards)
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
What are the 3 product levels?
- Core Product (Core customer value)
- Actual Product
- Augmented Product
Core Product (Core customer value)
The need a product satisfies (why consumers buy a product)
Actual Product
The features of the product itself (physical product)
True or False: Consumers always buy products for the actual product.
False. The actual product is not necessarily what consumers buy.
Augmented Product
The additional benefits or service supporting the main product.
Give an example of an augmented product
Examples include: warranties, customer service, packaging, installation
Give an example of an actual product
Consider a smartphone. Examples include: the phone itself, camera, screen, charger
Give an example of a core product
Examples include: hunger/thirst, entertainment, making phone calls, saving time
Services
An activity or benefit that one party offers to another that is intangible and does not result in ownership of anything. One can’t know exactly what they will receive until the service is provided (e.g. haircut, car wash).
What are the characteristics of services?
- Intangible
- Inseparable
- Variable
- Perishable
Intangible (Service Characteristic)
Cannot be seen, tasted, felt, or smelled before purchasing
Inseparable (Service Characteristic)
Consumed when it is provided and cannot be separated from the provider
Variable (Service Characteristic)
Quality depends on who provides
Perishable (Service Characteristic)
Cannot be stored or resold
What are the different types of products?
- Convenience Products
- Shopping Products
- Specialty Products
- Unsought Goods
Convenience Products
Frequent and/or immediate purchases (generally low-involvement products). Includes impulse purchases, staples, and emergency products.
Shopping Products
Products which require more involved decision-making before purchasing, more expensive, and less frequently purchased. Can be homogeneous or heterogeneous.
Homogeneous Products
Heterogeneous Products
Specialty Products
Products that have unique characteristics that a consumer values. The buyer makes a special effort to obtain the product.
Unsought Goods
Goods and services marketed to consumers who may not yet recognize the need or do not wish to recognize the need. Consumers need lots of convincing to purchase these products.
Give an example of a specialty product
Examples include: luxury cars (Bugatti), limited edition fashion products (Louis Vuitton), art
Give an example of an unsought good
Examples include: fire insurance (may not recognize need), life insurance (do not wish to recognize need)
