Exam 13: Setting Product Strategy

What is the importance of guarantees?

________ has overtaken the United States as the world's largest luxury market; it's forecast that one-third of all high-end goods will be sold there in the coming years.

The brand promise for ________ is "the product you buy is of highest esteem, based on its timeliness, elegant design and the high quality, which is derived from the excellence of our craftsmen."

The ability to design custom jeans through Levi's and create merchandise with your own images through Zazzle are examples of mass customization.

________ describes the service program for helping customers keep purchased products in good working order.

In the rapidly changing market of today's world, product lines must be continuously updated or modernized.

Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and milk are examples of impulse goods.

As a selling point, durability commands a particularly high pricing premium, especially for products that are subject to rapid technological obsolescence, as are personal computers and video cameras.

Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing": one price for the disposable products and another for the "hardware."

Apple has a clear design philosophy it calls "Design 3.0" and an internal design slogan, "Make it Meaningful," that reflects its relentless focus on making beautiful and intuitive products that will be integrated into customers' lifestyles.

Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk.

________ are formal statements of expected product performance by the manufacturer.

Outline three guidelines for correctly implementing a bundling strategy.

Distinguish between controllable returns and uncontrollable returns.

Ingredient branding can take on a form called "self-branding" in which the company advertises its own branded ingredients.

Studying how consumers shop, how they use a particular product or service, and how they dispose of the product when consumed is important for marketers. This information forms the basis of product strategy. Define the consumption system and identify the two upcoming product strategies that are affected by this knowledge.

The common denominators of luxury brands are quality and ________.

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product.

The customer-value hierarchy consists of the basic product, core benefit, expected product, augmented product, and the consumption system.

Marketers must see themselves as benefit providers. For example, when a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy?