Test 2 Flashcards
(47 cards)
Diffusion of Innovation
Innovators - venturesome - 2.5% Early Adopters - opinion leaders - 12.5% Early Majority - deliberate - 35% Late Majority - skeptics - 35% Laggards - tradition - 15%
Product characteristics that affect the spread of new products:
Complexity Compatibility Relative Advantage Observability Trialability
Define Product
Everything, both favorable and unfavorable, that a person receives in an exchange.
What is the difference in a consumer and a business product?
A consumer product is bought to satisfy an individual’s personal wants or needs. A business product is used to manufacture other goods or services, to facilitate an organization’s or to resell to other customers.
What are the 4 categories of consumer products?
- Convenience product
- Shopping product
- Specialty product
- Unsought product
Define convenience product
A relatively inexpensive item that merits little shopping effort.
Define shopping product
A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores.
Define specialty product
A particular item for which consumers search extensively and are very reluctant to accept substitutes.
Define unsought product
A product unknown to the potential buyer or a known product that the buyer does not actively seek.
What is a product item?
A specific version of a product that can be designated as a distinct offering among an organization’s products.
What is a product line?
A group of closely related product items.
What is a product mix?
All products that an organization sells.
What is a brand?
A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
What is the difference between a brand name, a brand mark, a trademark, and a service mark?
brand name = part of a brand that can be spoken
brand mark = elements of a brand that cannot be spoken (Mercedes symbol)
trademark = exclusive right to use a brand or part of a brand
service mark = a trademark for service
Name 6 branding concepts.
- General
- Manufacturer
- Private
- Individual
- Family branding
- Cobranding
Name 4 important characteristics of packaging.
- V - Visibility
- I - Information
- E - Emotion
- W - Workability
Define implied warranty and give an example.
An unwritten guarantee that the good or service is fit for the purpose for which it was sold.
Define express warranty and give an example.
A written guarantee.
What are the 6 categories of new products?
- New-to-the-world
- New product lines
- Additions to existing product lines
- Improvements or revisions of existing products
- Repositioned products
- Lower-priced products
Describe “new-to-the-world” as a category of new products and give an example.
AKA “discontinuous innovation”
These products create an entirely new market.
Example: Polytron Technologies’ see through smart phone.
Describe “new product lines” as a category of new products and give an example.
These products, which the firm has not previously offered, allow it to enter an established market.
Example: Moleskine’s first products were journals, now they also have a line of office supplies.
Describe “additions to existing product lines” as a category of new products and give an example.
New products that supplement a firm’s established line.
Example: Taco Bell and the Doritos locos taco.
Describe “improvements or revisions of existing products” as a category of new products and give an example.
“new and improved”
Example: new scents of Tide detergents
Describe “repositioned products” as a category of new products and give an example.
These are existing products targeted at new markets or market segments, or ones repositioned to change the current market’s perception of the product.
Example: Ford redesigning the Mustang for the younger generations.
