Exam 13: Setting Product Strategy

Some service firms often engage in ________, consisting of a fixed fee plus a variable usage fee.

You have been asked to create a product system for your company's personal digital assistant. Before starting, you must define the term product system to the engineers to enable them to start design and production of the aligned items. Define the concept of a product system.

A product system is a group of diverse and unrelated items that does not function in a compatible manner and includes the product mix and product assortment.

A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________.

The ________ of a product mix refers to how many variants are offered of each product in the line.

The cost of processing a return can be significantly greater than that of an outbound shipment.

Your research shows that over 53 percent of all purchases are made on impulse. As you sit down with your packaging design team, you tell them that the package must communicate many of the sales tasks. List the sales tasks that packaging must now incorporate due to the increase in self-service sales.

The vast array of products that consumers buy can be classified on the basis of shopping habits and are broken down into four main areas. List these four main classifications of consumer goods and explain what elements are included within.

Design can shift consumer perceptions to make brand experiences more rewarding.

Because ________ are purchased frequently, marketers should make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference.

Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition.

What occurs when any company lengthens its product line beyond its current range?

Realizing that although household products is a huge category - taking up an entire supermarket aisle or more - it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________.

Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________.

Describe the six main service differentiators.

What goods are similar in quality but different enough in price to justify shopping comparisons?

Companies normally develop ________ rather than single products and require sellers to establish perceived quality differences between price steps within it.

Design thinking requires intensive ethnographic studies of consumers, creative brainstorming sessions, and collaborative teamwork to decide how to bring the design idea to reality.

Various factors have contributed to the increased importance of packaging as a marketing tool. List and briefly describe these factors.

A buyer of the 2013 Subaru Outback 2.5i could pay extra for four-way passenger seats, an All-Weather package, and a power moon roof because Subaru was using captive-product pricing.