Exam 12: Setting Product Strategy

In ________, the seller offers goods both individually and in bundles and often charges less for the "bundle" than for the individual products.

Industrial goods can be classified as ________, capital items, or suppliers and business services based on their relative cost and how they enter the production process.

The five product levels constitute a ________. At each level more customer value is added.

In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements.

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.

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer orientated)that you wish to see implemented by the design team.

The homogeneity of natural materials limits the amount of demand-creation activity that producers undertake.

A Maserati sports car is considered a convenience good because interested buyers will travel far to buy one.

To avoid "feature fatigue," companies must be careful to prioritize those features that are included and find unobtrusive ways to provide information about how consumers can use and benefit from the feature.

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

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market.

Purchasers of theatre tickets receive a 20% discount if they purchase and pay for the full season at one time. This is an example of what type of product-mix pricing?

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

If the physical product cannot be easily differentiated, the key to competitive advantage lies in the pricing of the related "services" provided by the manufacturer.

The product-line length can be obtained by averaging the number of variants within the brand groups.

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.

The way the user performs the tasks of getting and using products and related services is the user's total ________.

Marketers have traditionally classified products on the basis of three characteristics: ________, tangibility, and use.

It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n)________.

The four product-mix dimensions (length, width, depth, consistency)permit the company to expand its business.