Chapter 12 and 13 exam review

Question 1

the development of a product that is closely related to existing products in the line, but is designed specifically to meet different customer needs

Answer 1

Line Extension

Question 2

What are 3 reasons for line extensions

Answer 2

focus on a different segment, more precisely satisfy needs of current segment, capture market share from competitors

Question 3

changes in one or more characteristics of a product

Answer 3

Product modification

Question 4

1. Product must be modifiable
2. customers must be able to perceive customer satisfaction
3. Modifications should produce greater customer satisfaction
   are requirements for what

Answer 4

Product Modification

Question 5

is that the customers accustomed to the original may resist the modified version

Answer 5

Drawback

Question 6

What are the 3 Major ways to modify products

Answer 6

1. Quality modifications
2. Functional Modifications
3. aesthetic modifications

Question 7

Changes related to a product’s dependability and durability

Answer 7

Quality Modifications

Question 8

Change’s affecting the product’s versatility, effectiveness, convenience, or safety

Answer 8

Functional modifications

Question 9

changes the sensory appeal of a product by altering taste, texture, sound, smell, or appearance

Answer 9

aesthetic modifications

Question 10

innovative benefits, different and better than existing products, never been sold by any organization before, and never been sold by a particular firm or in a market before are all definitions of what

Answer 10

New product

Question 11

what are the 7 phases of the new product development process?

Answer 11

1. idea generation
2. screening
3. Concept testing
4. business analysis
5. product development
6. test marketing
7. commercialization

Question 12

is the activity of seeking product ideas to achieve organizational objectives

Answer 12

Idea Generation

Question 13

means selecting the ideas with the greatest potential for further review

Answer 13

screening

Question 14

is seeking a sample of potential buyers’ responses to a specific product idea

Answer 14

concept testing

Question 15

involves evaluating the potential impact of a product idea on the firm’s sales, costs, and profits

Answer 15

business analysis

Question 16

is determining if producing a product id technically feasible and cost-effective

Answer 16

Product development

Question 17

is a limited introduction of the product in geographic areas chosen to represent the intended market

Answer 17

Test marketing

Question 18

is refining and finalizing plans and budgets for full-scale manufacturing and marketing a product

Answer 18

Commercialization

Question 19

the process of creating and designing products so customers perceive them as different from competing products

Answer 19

product differentiation

Question 20

the amount of quality a product possesses

Answer 20

level of quality

Question 21

the degree to which a product has the same level of quality over time

Answer 21

consistency of quality

Question 22

how a product is conceived, planned, and produced, (the total sum of a product’s physical characteristics

Answer 22

product design

Question 23

physical appearences of a product (involves functioning and usefulness

Answer 23

styling

Question 24

what are the three aspects of product differentiation are

Answer 24

product quality, product design and features, and customer services

Question 25

specific design characteristics that allow a product to perform certain tasks (helps company differentiate its product)

Answer 25

Product features

Question 26

human or mechanical efforts or activities that add value to a product

Answer 26

customer services

Question 27

creating and maintaining a certain concept of product in a customers mind

Answer 27

product positioning

Question 28

created by questioning a sample of consumers about their perceptions of products, brand and organization with respect to two or more dimensions

Answer 28

perceptual map

Question 29

best when products are equal and if the price is lower

Answer 29

head-to-head

Question 30

critical when introducing a brand into a market in which the company already has one or more brands

Answer 30

avoid competition

Question 31

eliminating a product from the product mix when it no longer satisfies a sufficient number of customers

Answer 31

deletion

Question 32

responsible for a product, a product line, or several distinct products that make up a group

Answer 32

product manager

Question 33

responsible for a single brand

Answer 33

brand manager

Question 34

responsible for managing the marketing activities that serve a particular group of customers

Answer 34

market manager

Question 35

a cross-functional group that creates entirely new products that may be aimed at new markets

Answer 35

venture teams

Question 36

An intangible product that involves a deed, performance, or an effort that cannot physically be held

Answer 36

Service

Question 37

A practice whereby customer contact jobs are outsourced into workers homes

Answer 37

Home sourcing

Question 38

A service is not physical and cannot be perceived by the senses

Answer 38

Intangibility

Question 39

Production of a service cannot be separated from its consumption by customers, customers must be present at the consumption of the service and cannot take the service home, implies a shared responsibility between the customer and service provider in giving and receiving the service

Answer 39

Inseparability of production and consumption

Question 40

Unused service capacity from one time period cannot be stored for future use, service marketers have to balance supply and demand

Answer 40

Perishability

Question 41

Service has variations in quality A.manufactured easier to standardize B. Heterogeneity increases as labor intensiveness increases C. Equipment based services have greater homogeneity

Answer 41

Heterogeneity

Question 42

Interactions resulting in satisfied customers who use a service repeatedly, important for service providers to maintain customers/ clients over the long-term, word of mouth communication has a key role in client-based relationship building

Answer 42

Client-based relationships

Question 43

The level of interaction between provider and customer needed to deliver the service The look of facilities plays an important role in high-contact industries Well-trained, satisfied employees are essential

Answer 43

Customer contact

Question 44

What are the 6 characteristics of services

Answer 44

Intangibility, inseparability of production and consumption, perishability, heterogeneity, client-based relationships, customer contact

Question 45

Services generally come in a bundle, core service, supplementary service, heterogeneity allows for customization, which creates a competitive advantage.

Answer 45

Development of service (4P)

Question 46

The basic service experience a customer expects to receive

Answer 46

core service

Question 47

One or more supportive services used to differentiate the service bundle from competitors

Answer 47

Supplementary service

Question 48

Marketers deliver services in a variety of ways Service may be provided at a customers home or business “At arms length”, with no face-to-face contact Marketing channels for services are usually short and direct Inventory management is a serious concern for services

Answer 48

Distribution of services (4P)

Question 49

Intangibility results in promotion-related challenges Tangible question are a typical way to promote services Personal selling can help customers visualize the service experienced Word-of-mouth communication is important

Answer 49

Promotion of services (4P)

Question 50

Pricing should consider: consumer price sensitivity, nature of the transaction, costs Prices can be based on: performance of specific tasks, time, level of demand Marketers must decide whether to bundle options and how to price bundles Consumers rely on price as an indicator of service quality

Answer 50

Pricing of Services (4P)

Question 51

Customers perception of how well a service meets or exceeds expectations

Answer 51

Service Quality

Question 52

Tangible attributes (of a product) such as color, style, size, feel, or fit that can be evaluated prior to purchase

Answer 52

Search qualities

Question 53

Attributes such as taste, satisfaction, or pleasure, that can be assessed only during purchase and consumption of a service

Answer 53

Experience qualities

Question 54

Attributes that customers may be unable to evaluate even after purchasing and consuming a service

Answer 54

Credence quality

Question 55

Two levels of expectations: desired and acceptable Customer-contact employees are in the best position to learn what consumers want Zone of tolerance

Answer 55

Analysis of customer expectations

Question 56

What the customer really wants

Answer 56

Desired

Question 57

The level of service. That is adequate

Answer 57

Acceptable

Question 58

The difference between the two levels (desired and acceptable)

Answer 58

Zone of tolerance

Question 59

An organization must set goals to ensure good service delivery The most important aspect of service quality specifications is managers commitment to service quality

Answer 59

Service quality specifications

Question 60

Customer-contact employees are often the least trained and lowest paid Customer contact employees should be well trained Evaluation and compensation system is important to employee performance

Answer 60

Employee performance

Question 61

Service companies must set realistic expectations about their services and deliver on promises Word of mouth from other customers shapes expectations (not manageable by the organization)

Answer 61

Management of service expectations

Question 62

What are the 4 qualities that affect service quality?

Answer 62

Analysis of customer expectations, service quality specifications, employee performance, management of service expectations

Question 63

Marketing activities conducted to achieve some goal other than ordinary business goals such as profit market share, or return on investment Two categories: nonprofit organization marketing, social marketing

Answer 63

Nonprofit marketing

Question 64

A collective of individuals who have an interest in or concern about an organization, product, or social cause

Answer 64

Target public

Question 65

Direct consumers of a product of a nonprofit organization

Answer 65

Client public’s

Question 66

Indirect consumers of a product of a nonprofit organization

Answer 66

General publics