Exam 12: Product and Service Strategies

Give three examples of convenience products.

What do MRO products and consumer convenience products have in common? How do they differ?

While a sensational ________ may grab consumers' attention through a pleasing visual appearance, it does not necessarily improve a product's usability.

The most basic level upon which a product can be viewed is the ________, which addresses the question, "What fundamental benefit is the customer buying?"

________ are products purchased and used by end consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products.

A(n) ________ is defined as a bundle of attributes that delivers benefits to consumers.

Style is a larger concept than design. Design describes the appearance of a product.

When the Twin Six Cafe provides gourmet menu options to its customers as well as impeccable service that includes allowing customers to hand-select their own cuts of meat, ________.

Style makes products more attractive and easier to use.

Refer to the scenario below to answer the following questions. Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum. The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacturing of children's race cars and walking dolls. Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely drop after Evelyn recouped some of her costs. After a 500-unit production run and a substantial financial investment, Evelyn Ringler set up a test market in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away." -Evelyn's vacuum is at the ________ stage of the product life cycle.

Once the product or service passes the business analysis test, it moves into the ________ stage of new product development.

A(n) ________ is a good or service that consumers purchase frequently with little or no advance planning.

Quaker produces a variety of cereals. This variety is called a product line.

You have an upset stomach. Your spouse rushes to the nearest store for a bottle of Pepto-Bismol. This product is a(n) ________ product.

A company that wants to establish a dominant market share during the introduction stage of a product's life cycle would be most likely to use a skimming strategy.

The purpose of the idea generation stage of new product development is to create a ________ number of ideas. The purpose of succeeding stages is to ________ that number.

Product mix ________ refers to the number of different product lines the company offers.

When all products in a category have similar core benefits, the appeal of one can be enhanced through differentiating it at the actual product level.

Explain the four ways in which a service is distinguished from a good.

A ________ is a group of products that are closely related.