Exam 4

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Marketing 200 - Exam 4 over chapters 10, 11, 12.

business product (industrial product)

a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

convenience product

a relatively inexpensive item that merits little shopping effort

shopping products

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

consumer product

a product bought to satisfy an individual's personal wants

heterogeneous shopping product

Examples include clothing, furniture, housing and universities. Have trouble comparing heterogeneous shopping products because the prices, quality and features vary so much.

specialty products

_________ products are searched for extensively, and substitutes are not acceptable. These products may be quite
expensive, and often distribution is limited.

unsought products

_________ products are products that are not known about or not actively searched for by consumers. These products
require aggressive personal selling and highly persuasive advertising.

product item

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

product line

a group of products that are closely related because the

Product mix width

the number of product lines an organization offers

product modification

Changing one or more of a product's characteristics is called:

quality modification

Which type of product modification changes a product's dependability or durability? (p 168)

functional modification

Which type of product modification changes a product's versatility, effectiveness, convenience, or safety?

style modification

Which type of product modification is an aesthetic product change?

planned obsolescence

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

product line extension

Adding additional products to an existing product line in order to compete more broadly in the industry is referred
to as:

brand

A _________ is a name, term, symbol, design, or combination thereof that identifies a seller's products and
differentiates them from competitors' products.

product

A _________ is everything, both favorable and unfavorable, that a person receives in an exchange. It can be tangible,
intangible, a service, an idea, or a combination of these things.

creation of a product

The ________ ___ __ _________ is the starting point in creating a marketing mix.

trademark

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

brand name

A _____ is the part of the brand that can be spoken.

brand mark

The _____ is the element of a brand that cannot be spoken.

brand equity

The value of company and brand names is referred to as:

global brand

A(n) _____ refers to a brand that obtains at least a third of its earnings from outside its home country

brand loyalty

A consumer who consistently and repeatedly purchases the same brand is said to have:

brand loyalty

consistent preference for one brand above all others

manufacturers brand

The brand name of a manufacturer is known as a(n) _____ brand.

private brand

A(n) _____ brand is one owned by the wholesaler or retailer.

captive brands

Which type of private label brand carries no evidence of a retailer's affiliation, is manufactured by a third party,
and is sold exclusively at the retailer?

individual branding

When a company uses different brand names for different products, it is using _____ branding.

family branding

When a company markets several different products under the same brand name, it is referred to as a(n) _____
brand.

co branding

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

trademark

A _____ is a legal term indicating the owner's exclusive right to use a brand name or part of a brand.

generic product name

identifies a product by class or type and cannot be trademarked; when a product name becomes generic

packaging

This element has three functions; protect the product, promote the product and facilitate the storage/use of product

persuasive labeling

Labels that contain standard promotional claims like "new," "improved," and "super" are examples of _____
labels.

informational

Labeling that is designed to help consumers make proper product selections and lower their cognitive dissonance
after the purchase is referred to as:

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

one brand name everywhere

Advantages of this global branding strategy include greater identification of the product from market to market and
ease of coordinating promotion from market to market.

express warranty

Which type of warranty is a written guarantee?

implied warranty

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

New products

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

New to the world products

Where the product category itself is new, are also called

new product lines

_____ occurs when an existing product is targeted toward new market segments. It is another type of new-product
development because the product is new to that segment.

new product strategy

A(n) _____ links the new-product development process with the objectives of the marketing department, the
business unit, and the corporation.

product development

The process of converting applications for new technologies into marketable products is called:

brainstorming

_____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without
considering the practicality of the ideas.

screening (idea screening)

The stage of the new-product development process that acts as the first filter, which serves to eliminate
new-product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason.

screening

At what stage of the new-product development process are most new-product ideas rejected?

concept test

_____ evaluate new-product ideas usually before any prototype has been created.

business analysis

In the _____ stage of new-product development, preliminary demand, cost, sales, and profitability estimates are
made.

development

In the _____ stage of new-product development, the technical feasibility of manufacturing the new product is
examined as a prototype is produced.

simultaneous product development

A team-oriented approach to new-product development is referred to as?

test marketing

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

test market city

This reflects market conditions in a new products projected market area.

simulated (laboratory) market testing

A(n) _____ typically entails showing members of the product's target market advertising and other promotional
materials for several products, including the test product. These people are then taken to a mock or real store,
where their purchases are recorded.

commercialization

During the (final) _____ stage of the new-product development process, production starts, inventories are built up, the
product is shipped to distribution points, the sales force is trained, and advertising and promotion begin.

product and market

The MOST important factor in successful new-product introduction is a good match between the _________ and ______ needs.

innovation

A product that is perceived as new by a potential adopter, whether the product is "new to the world" or simply new
to the individual, is called a(n):

diffusion

The process by which the adoption of an innovation spreads is referred to as:

innovators

_____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are
more cosmopolitan than other categories of adopters.

early adopters

_____ embrace products relatively early in the product life cycle, are likely to be community oriented, and often
are opinion leaders themselves.

early adopters

Which of the following adopters is MOST likely to become an opinion leader?

late majority

The _____ adopt a product because most of their friends have already done so, and their adoption is usually the
result of pressure to conform because they rely on group norms.

laggards

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the
norms of the group but are independent because they are bound to tradition. They tend to have the lowest
socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are
called:

complexity

Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding
and using a new product?

compatability

Which product characteristic affecting the rate of adoption represents the degree to which the new product is
consistent with existing values and product knowledge, past experiences, and current needs? (p 188)

relative advantage

The product characteristic affecting the rate of adoption characterized by the degree to which a product is
perceived as superior to existing substitutes is:

observability

Which product characteristic affecting the rate of adoption of a new product represents the degree to which the
benefits or other results of using the product can be communicated to target customers?

trialability

The degree to which a product can be used on a limited basis represents which product characteristic influencing
the rate of adoption?

product life cycle

A biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline
(death) is called the:

product life cycle

These are stages of what; introductory stage, growth stage, maturity age, decline stage.

product category

All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft drinks, and
furniture make up a(n): (p 189)

product category

Microwave ovens, staplers, frozen yogurt, and purses are examples of:

product characteristics

The length of the introductory stage of the product life cycle for a new product is largely determined by:

growth stage

The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.

growth stage

During this stage of the product life cycle, sales typically grow at an increasing rate, many competitors enter the market and many companies may start to acquire pioneering firms.

decrease

At the beginning of the maturity stage of the product life cycle, sales typically:

maturity

Normally, the longest stage of the product life cycle is the _____ stage.

maturity

In which stage of the product life cycle do marginal competitors start dropping out of the market?

decline

A long-run drop in sales signals the beginning of which stage in the product life cycle?

consumer

The rate of sales decline during the decline stage of the product life cycle is largely governed by:

maturity

Washing machines and refrigerators are in the _____ stage of the product life cycle.

service

A(n) _____ is the result of applying human or mechanical efforts to people or objects

intangible

A service cannot be touched, seen, tasted, heard, or fel
t in the same manner in which goods can be sensed and,
therefore, is referred to as being:

search quality

A(n) _____ is a characteristic that can be easily assessed prior to purchase, such as the softness of a mattress or the
color of curtains.

credence quality

A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience is referred to as _____ quality. Ex: medical and consulting

experience quality

a characteristic that can be assessed only after use.

inseparability

Which unique characteristic of services means that consumers must be present during the production?

heterogeneity

the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods

standardization and training

The consistency and reliability of a service can be increased by:

perishability

Due to service _____, services can
not be stored, warehoused, or inventoried.

reliability

Which component of a service is the ability to perform the service dependably, accurately, and consistently?

responsiveness

Which component of service quality represents the ability to provide prompt service?

assurance

Which service quality component is the knowledge and courtesy of employees and their ability to convey trust?

empathy

Service personnel who exhibit caring, individualized attention to customers are addressing which service quality
component?

tangibles

The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the
service, represents which component of service quality?

gap model

The model of service quality that identifies five disparities that can cause problems in service delivery and
influence customer evaluations of service quality is referred to as the _____ model

gap one

the gap between what customers want and what managers think customers want. This results from a lack of understanding of what customers want or need.

gap two

The gap between what management thinks customers want and the quality specifications that management develops to provide the service.

gap three

the gap between service quality specifications and the service that is actually provided. This is due to the inability of management and employees to do what should be done.

gap four

The gap between what the company provides and what the customers is told it provides. This is a communications gap.

people processing

Which category of service processing takes place when the service is directed at a customer?

possession processing

Which type of service processing occurs when the service is directed at customers' physical possessions, such as
lawn care, dry cleaning, and veterinary services

mental stimulus processing

refers to services directed at peoples minds. Ex. theatre or education

information processing

Which type of service processing uses technology or brainpower directed
at customer's assets?

core service

The most basic benefit the consumer is buying in a service is referred to as the

supplementary services

A group of services that support or enhance the core service is called

mass customization

_____ is the strategy that uses technology to deliver customized services on a mass basis.

distribution strategy

This strategy for service organizations focus on such issues as convenience, number of outlets, location and scheduling.

revenue oriented

A focus on maximizing the surplus of income over costs is a(n) _____ pricing objective for service firms.

operations oriented

Which service pricing objective seeks to match supply and demand by varying prices?

patronage oriented

A focus on maximizing the number of customers using a service is a(n) _____ pricing objective for service firms

relationship

Because many services involve a process of continuous interaction between the service organization and the
customer, _____ marketing is an important strategy.

level one

At which level of relationship marketing does the firm only use pricing incentives to encourage customers to
continue doing business with it?

level two

Which level of relationship marketing uses pricing incentives but also seeks to build social bonds with customers?

level three

This is based on structural bonds, along with financial and social bonds.

internal

Treating employees as customers and developing systems and benefits that satisfy their needs is known as _____
marketing.

nonprofit organization

A _____ seeks to achieve some goal other than the usual business goals of profit, market share, or return on
investment.

PSA (public service advertisement)

an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization

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