Exam 2

Question 1

Tangible good

Answer 1

Physical objects, such as car or sweater, that can be touched

Question 2

Shopping product

Answer 2

a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style (Air Conditioner)

Question 3

Specialty product

Answer 3

A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort (Apple iPhone)

Question 4

Convenience product

Answer 4

A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort

Question 5

Product

Answer 5

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

Question 6

Service

Answer 6

an activity , benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

Question 7

Packaging

Answer 7

the activities of designing and producing the container or wrapper for the product

Question 8

Product Line

Answer 8

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. (Starbucks, coffee, tea, snacks)

Question 9

Product Mix

Answer 9

the set of all product lines and items that a particular seller offers for sale (Coca-Cola has product brands like Minute Maid, Sprite, Fanta, Thumbs up, etc. under its name.)

Question 10

Co-branding

Answer 10

the practice of using the established brand names of two different companies on the same product (Nike & Apple with the chip in the shoe and smart watch)

Question 11

Idea Screening

Answer 11

screening new product ideas to spot good ones and drop poor ones as soon as possible

Question 12

Idea Generation

Answer 12

the systematic search for new product ideas

Question 13

New Product Development

Answer 13

The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts ( Netflix started as a DVD rental place)

Question 14

In the new product development process which step would use the R W W framework?

Answer 14

Idea screening

Question 15

What is commercialization of a product?

Answer 15

Introducing a new product into the market

Question 16

When launching a new product the company must first decide when to ………………it?

Answer 16

When to launch it

Question 17

A period of rapid market acceptance and increasing profits

Answer 17

Growth Stage

Question 18

What are the stages of product life cycle?

Answer 18

Introduction, growth, maturity, decline

Question 19

Value based pricing

Answer 19

You’ll be setting a cost based upon how much your customers will be willing to pay for the goods or service.

Question 20

Cost based pricing

Answer 20

setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

Question 21

Price

Answer 21

the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service

Question 22

Value- added pricing

Answer 22

differentiates your products by adding features or services that your competitors don’t have and that customers will pay more for ( Amazon prime w/music, discounts, etc)

Question 23

Demand curve

Answer 23

a curve that shows the number of units that the market will buy in a given period, at different prices that might be charged

Question 24

Fixed costs

Answer 24

costs that do not vary with production or sales level

Question 25

Variable Costs

Answer 25

costs that vary directly with the level of production 

Question 26

Market penetration pricing

Answer 26

Setting a low price for a new product in order to attract a large number of buyers and a large market share (Model 3)

Question 27

Uniform-delivered pricing

Answer 27

A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location

Question 28

In a direct marketing channel a producer is guaranteed full control over product sales

Answer 28

True

Question 29

A wholesaler is considered a marketing intermediary

Answer 29

True

Question 30

Vertical Conflict

Answer 30

conflict between different levels of the same channel ( McDonald’s franchisees and upper management

Question 31

Horizontal Conflict

Answer 31

occurs among firms at the same level of the channel ( Ford Dealerships)

Question 32

What is an example of a contractual VMS?

Answer 32

Franchises

Question 33

Intensive distribution

Answer 33

a strategy in which they stock their products in as many outlets as possible (toothpaste, candy)

Question 34

Exclusive distribution

Answer 34

in which the producer gives only a limited number of dealers the exclusive right to distribute its products in the territories (luxury brands; watches)

Question 35

Outbound

Answer 35

moving products from the factory to re-sellers and ultimately to customers 

Question 36

Inbound

Answer 36

moving products and materials from suppliers to the factory

Question 37

Reverse

Answer 37

reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers

Question 38

Retailing

Answer 38

all the activities involved in selling goods or services directly to final consumers for their personal, non-business use 

Question 39

Omni Channel Retailing

Answer 39

creating a seamless cross-channel buying experience that integrates instore, online, and mobile shopping

Question 40

Convenience Store

Answer 40

A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods

Question 41

Big Box Store

Answer 41

is a physically large retail establishment, usually part of a chain of stores

Question 42

What are the three major product variables a retailer must decide?

Answer 42

Product assortment, services mix, and store atmosphere

Question 43

Retailer Cooperative

Answer 43

Retailers use their purchasing power to acquire discounts from manufacturers and often share marketing expenses. A group of independently owned businesses that pool their resources to purchase in bulk.