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Flashcards in EXAM 3 Deck (132):
1

What is a product?

Everything both favorable and unfavorable that a person receives in an exchange

(Such as: Tangible Good
, Service
 & Idea)

2

Business product
(Types of Consumer Products)

: A product used to manufacture other goods or services to facilitate an organization’s operations, or to resell to offer customers

3

Consumer Product:
(Types of Consumer Products)

A product bought to satisfy an individual personal wants

4

Shopping products

(Types of Consumer Products)

A product that requires comparison shopping, because it is usually more expensive and found in fewer stores



5



Unsought product 

(Types of Consumer Products)

A product unknown to the potential buyer or a known product that the buyer does not actively seek.

6

Product item

A specific version of a product that can be designated as a distinct offering among an organization products

7

Product Line

A group of closely-related product items

8

Product Mix

All products that an organization sells

9

Planned Obsolescence

The practice of modifying products so those that have already been sold become obsolete before they actually need replacement

10

Types of product modification

Quality, functional and style modification

11

why reposition established brands

changing demographics, declining sales, change in social environment.

12

Product Line Extension

Adding additional products to an existing product line sales to complete more broadly in the industry

13

Brand Name

That part of a brand that can be spoken including letters, words and numbers


14

Brand Mark

: The elements of a brand that cannot be spoken

15

Brand Equity

: The value of company and brand names

16

Global Brand

: A brand where at least a third of the earnings come from outside its home country

17

Focus Group

The objects ......

18

Screening

The first filter in the product development process, which elongates ideas that are inconsistent with the organizational's new-product strategy or are inappropriate for some other reason.

19

Concept test

A test to evaluate a new-product idea, usually before any protypes been created.

20

Brand loyalty

consistent preference for one brand over all others

21

Co-branding

placing two or more brand names on a product or its package

22

Informational labeling

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

23

Persuasive labeling

a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary

24

Planned obsolescence

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

25

Product line depth

the number of product items in a product line

26

Product mix width

the number of product lines an organization offers

27

Product modification

changing one or more of a product’s characteristics

28

brand

a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products

29

captive brands

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation

30

convenience product

a relatively inexpensive item that merits little shopping effort

31

express warranty

a written guarantee

32

family branding

marketing several different products under the same brand name

33

generic product name

identifies a product by class or type and cannot be trademarked

34

implied warranty

an unwritten guarantee that the good or service is fit for the purpose for which it was sold

35

individual branding

using different brand names for different products

36

manufacturer’s brand

the brand name of a manufacturer

37

private brand

a brand name owned by a wholesaler or a retailer

38

product line extension

adding additional products to an existing product line in order to compete more broadly in the industry

39

service mark

a trademark for a service

40

shopping product

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores

41

specialty product

a particular item for which consumers search extensively and are very reluctant to accept substitutes

42

trademark

the exclusive right to use a brand or part of a brand

43

universal product codes (UPCs)

a series of thick and thin vertical lines (bar codes) readable by computerized optical scanners that represent numbers used to track products

44

warranty

a confirmation of the quality or performance of a good or service

45

Diffusion

the process by which the adoption of an innovation spreads

46

Product development

a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products

47

Test marketing

the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

48

brainstorming

the process of getting a group to think of unlimited ways to vary a product or solve a problem

49

business analysis

the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated

50

commercialization

the decision to market a product

51

development

the stage in the product development process in which a prototype is developed and a marketing strategy is outlined

52

innovation

a product perceived as new by a potential adopter

53

new product

a product new to the world, the market, the producer, the seller, or some combination of these

54

new-product strategy

a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation

55

simulated (laboratory) market testing

the presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market

56



simultaneous product development

a team-oriented approach to new-product development

57

Automatic vending

the use of machines to offer goods for sale

58

Department stores

a store housing several departments under one roof

59

Direct marketing (DM)

techniques used to get consumers to make a purchase from their home, office, or other nonretail setting

60

Direct retailing

the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties

61

Discount stores

a retailer that competes on the basis of low prices, high turnover, and high volume

62

Drugstores

a retail store that stocks pharmacy-related products and services as its main draw

63

Full-line discount stores

a discount store that carries a vast depth and breadth of product within a single product category

64

Microtargeting

the use of direct marketing techniques that employ highly detailed data analytics in order to isolate potential customers with great precision

65

Off-price retailers

a retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn’t ask for return privileges

66

Online retailing, or e-tailing

a type of shopping available to consumers with personal computers and access to the Internet

67

Restaurants

a retailer that provides both tangible products—food and drink—and valuable services—food preparation and presentation

68

Retailing

all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use

69

Self-service technologies (SST)

technological interfaces that allow customers to provide themselves with products and/or services without the intervention of a service employee

70

Shop-at-home television networks

a specialized form of direct response marketing whereby television shows display merchandise, with the retail price, to home viewers

71

Shopper marketing

understanding how one’s target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to generate sales or other positive outcomes

72

Specialty stores

a retail store specializing in a given type of merchandise

73

Supercenters

a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise

74

Supermarkets

a large, departmentalized, self-service retailer that specializes in food and some nonfood items

75

Telemarketing

the use of the telephone to sell directly to consumers

76

Used goods retailers

a retailer whereby items purchased from one of the other types of retailers are resold to different customers

77

atmosphere

the overall impression conveyed by a store’s physical layout, décor, and surroundings

78

back stock

inventory held in reserve for potential future sale in a retailer’s storeroom or stockroom

79

beacons

a device that sends out connecting signals to customers’ smartphones and tablets in order to bring them into a retail store or improve their shopping experience

80

big data analytics

the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior

81

brand cannibalization

the reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product by another brand

82

category killer

a large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category

83

chain store

a store that is part of a group of the same stores owned and operated by a single organization

84

click-and-collect

the practice of buying something online and then traveling to a physical store location to take delivery of the merchandise

85

convenience store

a miniature supermarket, carrying only a limited line of high-turnover convenience goods

86

destination store

a store that consumers purposely plan to visit prior to shopping

87

direct mail

the delivery of advertising or marketing material to recipients of postal or electronic mail

88



factory outlet

an off-price retailer that is owned and operated by a manufacturer

89

floor stock

inventory displayed for sale to customers

90

franchise

a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee

91

franchisee

an individual or business that is granted the right to sell another party’s product

92

franchisor

the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product

93

gross margin

the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted

94

independent retailer

a retailer owned by a single person or partnership and not operated as part of a larger retail institution

95

layout

the internal design and configuration of a store’s fixtures and products

96

nonstore retailing

shopping without visiting a store

97

retail channel omnification

the reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs

98

retailers

a channel intermediary that sells mainly to consumers

99



retailing mix

a combination of the six Ps—product, promotion, place, price, presentation, and personnel—to sell goods and services to the ultimate consumer

100

shopper analytics

searching for and discovering meaningful patterns in shopper data for the purpose of fine-tuning, developing, or changing market offerings

101

specialty discount stores

a retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover

102

warehouse club

a large, no-frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee

103

11. Which of the following statements is true of product lines?

A. An advantage of a narrow product line is the ability to have a greater gap between price points.

B. Product line refers to consumer products; product mix refers to industrial products.

C. An advantage of broad product lines is the increased likelihood of gaining access to large retail chain distributions.

D. A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.

E. A broad product line reduces the need for products to be linked by usage or customer base.

D. A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.

104


12. The most obvious function of packaging is to:

is to contain products that are liquid, granular, or otherwise divisible.

105


13. Product line depth refers to the number of:

of versions offered of each product in the line.

106


15. Torque Roz, an automobile company, uses a unique tire design on its vehicles. A rival company was found copying the exact design in its automobiles. Torque Roz was able to file a case against the rival company about this issue and win the lawsuit. In this scenario, Torque Roz's unique tire design is a registered _____.

trademark

107

16. Dunchen Moo, a manufacturer of dairy products, sells milk powders, flavored whipped cream, and yogurts. It markets a number of yogurts, including Dunchen All Natural, Dunchen Fruit on the Bottom, Dunchen Light & Fit, DunActive, and Dun-o-nino. The large variety of yogurts sold by the Dunchen brand is collectively an example of a _____.

Product Line

108


17. _____ occurs when two brands receiving equal treatment borrow from each other's brand equity.

cooperative branding

109


18. Which of the following statements is true of an implied warranty?

It comes with the sale of every product under the Uniform Commercial Code.

110


19. Which of the following statements is true of trademarks?

A. Trademarks must always be registered in their home country only.

B. In the U.S., common law protects the rights of the owners of brand names and trademarks.

C. The Lanham Act requires that all trademarks be registered.

D. Registering under the Lanham Act is often a first step to protecting a trademark to be used in foreign markets.

E.Both B and D are true.

E.Both B and D are true.

111

20. Which of the following statements is true of a specialty product?

a. Purchasers are usually bargain hunters who are not willing to pay much.

b. Purchasers begin shopping with complete information of the desired product.

c. Purchasers tend to exert minimal effort to obtain the desired product.

d. Purchasers generally accept substitutes if the desired product is unavailable.

.b. Purchasers begin shopping with complete information of the desired product.

112


21. A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry.

.product line extension

113


22. Which of the following statements is true of an express warranty?


A. It contains an unwritten guarantee about the performance of a product.

B. It ranges from simple statements to extensive documentswritten in technical language.

C. It gives the impression of environmental friendliness to a product.

D. It prohibits other firms from using a brand or part of a brand without permission.

B.

It ranges from simple statements to extensive documentswritten in technical language.

114

27. In the context of diffusion of innovation, a dominant characteristic of innovators is tradition?

TRUE OR FALSE?

FALSE

115

28. Roger, an affluent college graduate, buys gadgets on the day of their launch in the market. He reads expert reviews on the Internet, and he is not influenced by the opinions of his family and friends while choosing products. Roger is most likely to belong to the category of _____ in the context of diffusion of innovation.

innovators

116


30. What are the disadvantages of test marketing?

Expensive, Time consuming, Competitive Awareness & Inconclusive Results

117


31. Steven, a construction worker, tends to buy a new gadget if most of his friends have them. He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions. It can be inferred that Steven belongs to the category of _____ in the diffusion of innovation.

the late majority

118

32. What are the similarities between early adopters and the early majority?

Likely to collect more information and evaluate more brands

119

33. Which of the following statements is true of the maturity stage of the product life cycle (PLC)?

Marketing attention is directed toward holding market share through further product differentiation and finding new buyers.

120


34. In the context of the product life cycle, a long-run drop in a product's sales signals the beginning of what stage?

decline stage

A long-run drop in sales signals the beginning of the decline stage. The rate of decline is governed by how rapidly consumer tastes change or substitute products are adopted.

121


36. In a franchise situation, who pays for the right to use a brand name, product, and methods of operation.

franchisee

122


37. Asif, a member of a local baseball team, broke his bat during a practice match. With the final match scheduled for the next day, Asif urgently required a new bat. Therefore, he placed an order on Duke.com, an online portal for sports goods, and he dropped in at its nearest physical store to pick up his order. This is an example of the use of _____.

click-and-collect​

123


38. A _____ is a type of discount store that carries a vast depth and breadth of product within a single product category.

Full Line Discount Store

124


39. A(n) _____ is a retail business where the operator is granted a license to operate and sell a product under the brand name of a larger supporting organizational structure.

franchise

125


40. Which of the following statements is true of click-and-collect?

A.It requires representatives to sell products door­to­door, in offices, or at in­home sales parties.

B.It employs outbound and inbound telephonecontacts to sell directly to customers.

C.It enables consumers to make their purchases online and pick up their orders from physical stores.

D.It allows customers to shop over the Internet andhave items delivered directly to their door.

C. It enables consumers to make their purchases online and pick up their orders from physical stores.

126


41. A _____ is the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product.

.Franchisor

127

42. _____ is a form of nonstore retailing that entails the use of machines to offer goods for sale.

Automatic vending

128


43. What are the differences between off-price retailers and specialty shops?

Off-price retailers focus on lean inventory management, while specialty shops are supported by an agile approach to inventory.

129

44. The Hunt, a liquor store, is famous for its unique and extensive collection of alcoholic beverages. Its employees possess up-to-date knowledge of the liquor available in the store, which allows them to assist customers in their purchasing decisions. The Hunt is an example of a _____ type of retailer.

.specialty store​

130

45. Lily's Apparel, a renowned apparel store, focuses on Gen Y customers and provides them with a customized clothing experience. Lily's Apparel has defined its target market by _____.

psychographic characteristics

131

46. What is brand cannibalization? Why is it dangerous to the retailer?

Retailers incur financial loss from discounting the surplus inventory of the cannibalized brand.

First, retailers incur significant expense in executing the promotion itself.
Second, the promotion creates inaccurate sales forecasts for both the promoted and cannibalized products, leading to stockouts of the promoted brand and financial losses from discounting surplus inventory of the cannibalized brand.

132

48. _____ refers to the number of product lines an organization offers.

Product mix width