Chapter 4: Product Flashcards
0
Q
What does attributes does a product have
A
Tangible
Intangible
1
Q
What is a product?
A
Good
Service
Idea
2
Q
The attributes can
A
Deliver benefits
Satisfy consumers want
3
Q
For something to be considered a product,
A
A form of exchange made
Money or unit of value
4
Q
What are the tangible benefits?
A
Function
Features
Design
5
Q
What is function?
A
What you can do with the product
6
Q
What is feature?
A
The characteristics of product in tangible form
Supports functions
7
Q
What is design?
A
Aesthetic characteristics
8
Q
Intangible benefits are
A
Brand
Education
9
Q
A product has how many levels?
A
3
10
Q
What are the levels of product?
A
Core
Actual
Augmented
11
Q
What is the core product?
A
It is the benefit of the product that meets consumers needs
12
Q
What is the actual product?
A
It is the physical and tangible aspects of the product (features)
13
Q
What is augmented product?
A
Additional benefits not tied directly to the main product
14
Q
What are the variations of product?
A
Product range Product line Product breadth Product width Product item
15
Q
What is product range also known as?
A
Product mix
16
Q
What is product range?
A
Full set of products offered for sale
17
Q
What is product line?
A
Group of products
Similar physical characteristics
Similar purpose
18
Q
What is a product breadth
A
The number of product lines marketed in a firm
19
Q
What is product breadth also known as?
A
Product width
20
Q
What is product depth
A
Variety of
Sizes
Colors
Models
21
Q
What is product item
A
Individual version of product
22
Q
How do you classify products? What is the basis?
A
Frequency
Relative cost
Time and effort
23
Q
The 3 classifications are?
A
Convenience
Shopping
Specialty
24
Different classes of products are affect differently by
Fad or fashion
Distribution
Substitute
26
Convenience goods' characteristics are
Not usually affected by fad or fashion
Marketers usually provide wide distribution (make it convenient to purchase)
Consumers are generally willing to accept substitutes if choice is not available
27
Shopping goods are
relatively higher priced
Purchased not as frequently
Time and effort on comparing several alternatives on criteria
28
Characteristics of shopping goods are
Usually affected by fad or fashion
Selective distribution in retail outlets (relative convenient)
Several substitutes for comparison
29
Specialty goods are items that
Consumer have strong brand preference
Very specific need
They will spend a lot of time and effort to buy
30
Characteristics of a specialty good are
Exclusive distribution: ensure control of presentation
Consumers will give up more accessible substitutes
Brand is of utmost importance
31
Unsought goods are
New products consumers not aware of
| Products that consumer are aware of, but do not immediately want
32
New products are necessary because
Technological advances make products obsolete
Competitors can copy successful products
New products to better meet needs are demanded all the time
33
The classifications of new product are
True innovation
Innovative replacements
Imitative products
34
True innovations are products that
Have dramatic improvement
Create a new product class
Exceed how current product can meet needs
35
Innovative replacements are products that
Have significant improvement
| To better meet needs of consumers
36
Imitative products have
A small improvement
New to the company
Not new to the market
37
What to consider when adding a new product?
Sufficient demand
Financial fitness
Regulations
Marketing support
38
New products take time to be adopted? How are they adopted?
Yes. Different groups of people
39
What are the adopters?
```
Innovators
Early adopters
Early majority
Late majority
Laggards
```
40
How many % of adopters are innovators?
3%
41
The characteristics of innovators are
Young
Adventurous
Trendsetters
Enjoy taking risks
42
How many % of adopters are early adopters?
13%
43
What are the characteristics of early adopters?
Young
Alert and sensitive to trends
Adopt for recognition
44
How many % of adopters are early majority?
34%
45
What are the characteristics of the early majority?
Deliberate
Cautious
Adopt only after certain degree of success
46
How many % of adopters fall into late majority?
34%
47
What are the characteristics of late adopters?
```
Older
Less exposed to outside influences
Lower income
Skeptical: More resistant to change
Wait until most people have switched over
```
48
What is the % of adopters who are laggards?
16%
49
What are the characteristics of laggards?
Traditional bound
Little media exposure
Live in suburban or rural areas
Avoid change unless they have no other choice
50
What do you call the process in which an individual adopts a product
Consumer adoption process
51
What are the stages of the consumer adoption process?
```
Awareness stage
Interest stage
Evaluation stage
Trial stage
Adoption stage
Post adoption confirmation stage
```
52
In the awareness stage, adopters
Get exposed to the product through promotional messages
53
In the interest stage, adopters
Are aroused enough to start looking for information
54
In the evaluation stage, consumers
Start comparing the product with competitive products
55
In the trial stage, consumers
Try a sample
| Purchase product for the first time
56
In adoption stage, consumers start to
Use the product on a regular basis
57
In post adoption confirmation stage,
Consumers assess the product
On a continual basis
Talk to others about it
58
'How long does it take for people to go through the adoption process' What is it called
Rate of adoption
59
The rate of adoption is affected by
```
Relative advantage
Compatibility
Complexity
Ability to trial
Observability
```
60
Convenience goods are
Purchased frequently
Relatively low cost
Little time and effort to purchase
61
What is relative advantage?
Degree of innovation superiority
62
What is compatibility?
Degree of innovation consistency with values and experience of adopter
63
What is complexity??
How user friendly
64
What is ability to trial?
Degree new idea can be sampled on limited basis
65
What is observability?
Innovation seen to work
66
What are the four stages in PLC?
Introduction
Growth
Maturity
Decline
67
What are the respective objectives for each stage?
Gain awareness
Stress differentiation
Maintain brand loyalty
Harvesting or deletion
68
What are the criterias to analyze in each stage?
4Ps
Competition
Sales and profit
Aim/action
69
Why are sales and profits are low in introduction stage
Low awareness
| R&D cost
70
Why are places limited in introduction stage?
High risks of new products
| May not sell well
71
In growth stage, what rises rapidly?
Sales and profits
72
Why is there a large increase in competitors?
Profit outlook attractive
73
At what stage are prices dropped? Why?
Growth
Economies of scale, COP drop, drop prices
Thwart competition
74
Primary and secondary demand are met in what stages?
Introduction
| Growth
75
When do profits begin to fall? Who experiences this?
Maturity
| Producer and retailer
76
How do producers act in maturity?
Broaden product line
New models
Extra services
77
When do sales begin to fall?
Decline
78
How to keep profits afloat in decline stage?
Cost control
79
Why are there smaller number of competitors in decline?
They withdraw from market
80
What is deletion?
Dropping product out of product line
81
What is harvesting?
Continue to offer product
Reduce costs of marketing
More profits earned
82
Deletion is a drastic strategy that affects
Residual core of loyal customers
83
What type of products affect PLC?
Fad product
High/low amount of learning
Fashion
84
What is a fad product?
Novelty product
Rapid sales, short season
PLC short
85
What is a product with high learning?
Large amount of education
| Extended introductory period
86
What are products that require low amounts of learning?
Benefits are understood
Competitors can imitate
Introduction and growth short
87
What is a fashion product?
Comeback
| Gets popular, declines, popular after some time
88
How to extend PLC?
Modify the:
Product
Market
Reposition product
89
How to modify the product?
```
Change
Features
Functions
Design
Appearance
Quality
Performance
```
Increase value
Increase appeal
90
How to modify the market?
Find new users:
Those in target segment haven't bought
Who are buying from direct competitors
Find new segments
Target consumers in new market niches/segments
Increase the usage:
Promote frequent consumption
Creating new use situation:
Identify new applications
91
What is repositioning a product?
Changing the perception of brand occupied in consumers mind relative to competitive products
92
What does repositioning move away from
Strong competitor
93
What does repositioning move closer to?
New market
| Move closer to what consumer perceive a brand that meets needs
94
Products are repositioned when there is a change in
Consumer trend
95
Products can be repositioned by changing
Value offered
96
What does changing value offered involve?
Trading up: adding value through additional features, higher quality materials
Trading down: reduce no. of features, quality, price or down sizing
