Domain 5: The Offering--Product and Service

Question 1

Anything that can be offered to a market that might satisfy a want or need.

Answer 1

Product

Question 2

A product and service identification code for a store or product, often displayed as a machine-readable bar code that helps track the item for inventory.

Answer 2

Stock-keeping unit (SKU)

Question 3

A company product or service that is most directly related to its core competencies.

Answer 3

Core product

Question 4

An upgrade or revision to an existing product through additional features or functionality.

Answer 4

Enhanced product

Question 5

Things that are physical, that is, items that can be touched, seen, heard or smelled.

Answer 5

Tangibility

Question 6

Assurance or probability that an equipment, machine, or material will have a relatively long continuous useful life, without requiring an inordinate degree of maintenance.

Answer 6

Durability

Question 7

A good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use.

Answer 7

Durable product

Question 8

AKA soft goods (consumables) are the opposite of durable goods. They may be defined either as goods that are immediately consumed in one use or ones that have a lifespan of less than three years.

Answer 8

Nondurable product

Question 9

A consumer item that is widely available and purchased frequently with minimal effort. Because these can be found readily, it does not typically involve an intensive decision-making process.

Answer 9

Convenience goods

Question 10

Usually requires a more involved selection process than convenience goods. A consumer usually compares a variety of attributes, including suitability, quality, price, and style.

Answer 10

Shopping goods

Question 11

Item that is extraordinary or unique enough to motivate people to make an unusual effort to get it. Examples are designer clothes, exotic perfumes, limited-edition cars, stunning designs, works of famous painters.

Answer 11

Specialty goods

Question 12

Goods that the consumer does not know about or does not normally think of buying, and the purchase of which arises due to danger or the fear of danger and lack of desire. The classic examples are funeral services, encyclopedias, fire extinguishers and reference books.

Answer 12

Unsought goods

Question 13

The matter from which a thing is or can be made.

Answer 13

Materials

Question 14

A piece or segment of something such as an object, activity, or period of time, which combined with other pieces makes up the whole.

Answer 14

Parts

Question 15

Supplies consumed in the production process but which do not either become part of the end product or are not central to the firm’s output.

Answer 15

MRO supplies (maintenance, repair, operating)

Question 16

Tangible assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services in order to produce consumer goods and goods for other businesses.

Answer 16

Capital goods

Question 17

The value a consumer sees in a finished product.

Answer 17

Form utility

Question 18

How well something, such as a product, service or a system, meets a specified standard.

Answer 18

Conformance

Question 19

Ability of a damaged or failed equipment, machine or system to be restored to acceptable operating condition within a specified period (repair time).

Answer 19

Reparability

Question 20

Characteristics or elements combined and expressed in a particular (often unique) and consistent manner.

Answer 20

Style

Question 21

A group of related products under a single brand sold by the same company.

Answer 21

Product line

Question 22

Also known as product assortment, refers to the total number of product lines a company offers to its customers.

Answer 22

Product mix

Question 23

Based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).

Answer 23

Product life cycle (PLC)

Question 24

A desirable trend characterized with lots of enthusiasm and energy over a short period of time.

Answer 24

Fad

Question 25

A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. In addition, it can also include the activities that are used to increase the market share of a particular product or service.

Answer 25

Market penetration

Question 26

A product pricing strategy by which a firm charges the highest initial price that customers will pay and lowers it over time. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price-sensitive segment.

Answer 26

Market (price) skimming

Question 27

These products are truly the first of their kind and establish an entirely new market. New-to-the-world products are generally a result of scientific and technological innovation.

Answer 27

New-to-the-world product

Question 28

The process of making meaningful product changes that result in new customers or increased benefits realized by existing customers.

Answer 28

Product improvement

Question 29

The use of an established product brand name for a new item in the same product category.

Answer 29

Product line extension

Question 30

The process used by companies to reduce their costs and increase their profits. Depending on a company’s services or product, the strategies can vary. Every decision in the product development process affects cost.

Answer 30

Cost reduction

Question 31

When a company fails to stop a bad product idea from moving into product development.

Answer 31

Go-to-market mistake

Question 32

This happens when a good idea is prematurely eliminated during the screening process.

Answer 32

Stop-to-market mistake

Question 33

A decision support and planning tool that projects the likely financial results and other business consequences of an action or investment.

Answer 33

Business case analysis

Question 34

Occurs through a five–step decision-making process. It occurs through a series of communication channels over a period of time among the members of a similar social system. Ryan and Gross first identified adoption as a process in 1943. Rogers' five stages (steps): awareness, interest, evaluation, trial, and adoption are integral to this theory.

Answer 34

Innovation diffusion process

Question 35

A name, term, design, symbol, or other feature that distinguishes an organization or product from its rivals in the eyes of the customer.

Answer 35

Brand

Question 36

A long-term plan for the development of a successful brand in order to achieve specific goals. A well-defined and executed brand strategy affects all aspects of a business and is directly connected to consumer needs, emotions, and competitive environments.

Answer 36

Brand strategy

Question 37

How a business presents itself to, and wants to be perceived by, its consumers.

Answer 37

Brand identity

Question 38

Refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent.

Answer 38

Brand equity

Question 39

The degree of consumer awareness of a brand and its related products.

Answer 39

Brand awareness

Question 40

A consumer behavior pattern where consumers become committed to a particular brand, and make repeat purchases over time.

Answer 40

Brand loyalty

Question 41

The customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives.

Answer 41

Perceived quality

Question 42

Extent to which a particular brand calls to mind the attributes of a general product category. For example, asking for 'Pampers' when one wants disposable diapers.

Answer 42

Brand association

Question 43

The consistent signals that make it quite easier for the consumers to recognize and identify the brand and recall the associations related to the consumer and the brand.

Answer 43

Brand assets

Question 44

Refers to a marketing strategy that promotes a family of products or services under an umbrella brand.

Answer 44

Family branding

Question 45

A strategy by which a company uses the same brand to enter into a completely unrelated product segment. The company leverages on the brand equity and success of its existing brand to introduce the new product to increase market acceptance.

Answer 45

Category extension

Question 46

Brand marketed throughout a national market. These are owned and promoted usually by large manufacturers.

Answer 46

National brands

Question 47

Often referred to as a generic product, is manufactured or acquired by a particular firm for exclusive sale to consumers.

Answer 47

Store brand

Question 48

A marketing strategy that utilizes multiple brand names on a good or service as part of a strategic alliance. Also known as a brand partnership.

Answer 48

Cobranding

Question 49

A document that provides the greatest amount of protection to the purchaser of property as it pledges or warrants that the owner owns the property free and clear of any outstanding liens, mortgages, or other encumbrances against it. With this type, the grantor would be responsible for a breach of any of these conveyed warranties and guarantees – even if the breach occurred without their knowledge or during a period when the grantor did not own the property.

Answer 49

General warranties

Question 50

A deed in which the grantor warrants only against defects occurring during their ownership.

Answer 50

Special warranties

Question 51

A commercial enterprise that provides work performed in an expert manner by an individual or team for the benefit of its customers. The typical business of this type provides intangible products, such as accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, and transportation services.

Answer 51

Service

Question 52

An economy where the primary economic activities revolve around providing a service rather than manufacturing goods.

Answer 52

Service economy

Question 53

Produces intangible goods, more precisely services instead of goods, and according to the U.S. Census Bureau, it comprises various service industries including warehousing and truck transportation services, information sector services, commodities, securities and other investment services, professional, technical and scientific services, waste management services, health care and social assistance services, and arts, entertainment, and recreation services.

Answer 53

Service sector

Question 54

A meta-theoretical framework for explaining value creation, through exchange, among configurations of actors. The underlying idea of S-D logic is that humans apply their competences to benefit others and reciprocally benefit from others' applied competences through service-for-service exchange.

Answer 54

Service dominant logic

Question 55

Services are not physical and cannot be "possessed." Because they can't be seen, touched, or made tangible in some way, assessing their quality and value is difficult. A services client will never know how good the service is until after he receives it. In some cases, it actually may be months or years before a trigger event occurs to activate the service, at which time the client hopes to experience the promised service quality (e.g., an IT crisis triggers service, or an accident initiates an insurance claim).

Answer 55

Intangibility

Question 56

Expresses the notion that a service can not be separated from the service provider.

Answer 56

Inseparability

Question 57

The notion that a service may vary in standard or quality from one provider to the next or from occasion to the next. Also referred to as Heterogeneity.

Answer 57

Variability

Question 58

Expresses the notion that a service cannot be made in advance and stored.

Answer 58

Perishability

Question 59

The market interest for a product that shows variations over time. Purchasing activity increases and decreases because of direct and/or indirect influences.

Answer 59

Fluctuating demand

Question 60

Establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity. The links in the chain (which should be regarded as propositions) are as follows: Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, and productive employees. Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver results to customers.

Answer 60

Service-profit chain

Question 61

Employees are treated as “internal customers” who must be convinced of a company's vision and worth just as aggressively as “external customers.” The goal of this marketing is to align every aspect of a company’s internal operations to ensure they are as capable as possible of providing value to customers. If a company can operate in a coordinated and standardized way, that company can provide a more consistent experience to their customers.

Answer 61

Internal marketing

Question 62

A way of doing business with your customer in a way that provides a positive customer experience before and after the sale in order to drive repeat business, customer loyalty and profits.

Answer 62

Customer-centric

Question 63

The orientation of an organization toward serving its clients' needs.

Answer 63

Customer focus

Question 64

The total perceived benefits a customer expects from a company's product or service.

Answer 64

Customer expectations

Question 65

A specialized form of customer service in which companies focus on what is deemed to be best for the customer. It is a change in a company's culture that is supported by customer-focused customer service and marketing techniques.

Answer 65

Customer advocacy

Question 66

Search products or services have attributes customers can readily evaluate before they purchase. A hotel room price, an airline schedule, television reception, and the quality of a home entertainment system can all be evaluated before a purchase is made.

Answer 66

Search attributes

Question 67

Experience products or services can be evaluated only after purchase, such as dinner in a new restaurant, a concert or theater performance, a new movie, or a hairstyle. The customer cannot pass judgment on value until after he or she has experienced the service.

Answer 67

Experience attributes

Question 68

Credence products or services have attributes buyers cannot confidently evaluate, even after one or more purchases. Thus, buyers tend to rely on the reputation of the brand name, testimonials from someone they know or respect, service quality, and price. Credence products and services include health care; legal, accounting, advertising, consulting, and IT services; baldness cures; pension, financial, and funeral services; and even pet food (since you have to infer if your pet likes it or not). Credence services are more likely than other types to be customized, making them difficult to compare to other offerings.

Answer 68

Credence attributes

Question 69

Occupations in the tertiary sector of the economy requiring special training in the arts or sciences. Some of these require holding professional licenses such as architects, accountants, engineers, doctors, and lawyers.

Answer 69

Professional services

Question 70

Surprising a customer by exceeding his or her expectations and thus creating a positive emotional reaction. This emotional reaction leads to word of mouth.

Answer 70

Customer delight

Question 71

Everyone likes to feel special and customers always want to feel that their dollars matter. Nothing says "I value you" better than when companies take the time to look for ways to personally surprise their customers. This changes behavior, need not be expensive, turbocharges emotions, and fuels passionate relationships.

Answer 71

Delightful surprises

Question 72

An assessment of how well a delivered service conforms to the client's expectations.

Answer 72

Service quality

Question 73

Transactional interactions in which one person (e.g., a vendor, office clerk, travel agent) provides a service or good (e.g., a product, an appointment, airline tickets) to another person.

Answer 73

Service encounter

Question 74

The moment when a customer/user interacts with a brand, product or service to form or change an impression about that particular brand, product or service.

Answer 74

Moment of truth (MOT)

Question 75

Helps to identify the gaps between the perceived service qualities that customers receive and what they expect.

Answer 75

Gap Model of Service Quality

Question 76

The difference between consumer expectations and management perceptions of consumer expectations

Answer 76

First gap of service quality

Question 77

The difference between management’s perceptions of consumer expectations and service quality specifications.

Answer 77

Second gap of service quality

Question 78

The difference between service quality specification and the service actually delivered.

Answer 78

Third gap of service quality

Question 79

The difference between service delivery intention and what is communicated about the service to customers.

Answer 79

Fourth gap of service quality

Question 80

The difference between the actual performance and the customer perception of the service.

Answer 80

Fifth gap of service quality

Question 81

Converting a previously dissatisfied customer into a loyal customer." It is the action a service provider takes in response to service failure. By including also customer satisfaction into the definition, this is a thought-out, planned, process of returning aggrieved/dissatisfied customers to a state of satisfaction with a company/service

Answer 81

Service recovery

Question 82

Service performance that fails to meet a customer’s expectations.

Answer 82

Service failure

Question 83

Products having physical existence and/or form, or discernible through one or more senses.

Answer 83

Tangibles