Chapter 10

Question 1

what 2 dimensions can you classify products?

Answer 1

1. type of user

2. degree of tangibility

Question 2

what is the difference between a product line and a product portfolio?

Answer 2

product line: group of products that are closely related

product portfolio: number of product lines offered by a company

Question 3

what is a consumer good? what are the classifications? give an example.

Answer 3

a good sold to the end user

- convenience goods (toothpaste), shopping goods (cameras), unsought goods (burial insurance), specialty goods (rolex)

Question 4

What is a business good? what are the classifications? give an example

Answer 4

a good sold to a business

- production goods (lumber), support goods (installation, office supplies)

Question 5

what are the 4 different definitions of a “new” product?

Answer 5

• compared with existing products (functionally different)
• in legal terms (12 mo)
• company perspective (incremental improvement - coke zero)
• consumer perspective (continuous, discontinuous, dynamically continuous)

Question 6

what are the 3 types of new products from a consumer perspective?

Answer 6

• continuous innovation
• dynamically continuous
• discontinuous

Question 7

what are the 7 types of new services? give an example of each

Answer 7

1. major service innovation (new process, new service) online auctions
2. major process innovation (new process) online classes
3. service line extension (new extended service) insurance by banks
4. process line extension (new ways of service) online banking
5. supplementary service innovations (add to core) internet @ fedex
6. basic service improvements- faster CS
7. style change- new uniforms

Question 8

what are the reasons for a new product or service failure?

Answer 8

1. insignificant point of difference
2. incomplete market & product definition before development starts
3. too little market attractiveness
4. poor execution of marketing mix
5. poor product quality
6. bad timing
7. no economical access to buyers

Question 9

what are the 7 stages of the “new product development” process?

Answer 9

1. new product strategy development
2. idea generation
3. screening and evaluation
4. business analysis
5. development
6. market testing
7. commercialization