Top 10 Learning Questions for

Setting Product strategy Ch 12

Maryam EftekharDec/2/2010

1. At the second level of the customer value hierarchy, the marketer has to turn the _____ into a(n) _____.

A. basic product; expected product

B. expected product; augmented product

C. core benefit; basic product

D. basic need; basic product

E. basic need; core benefit

Five Product Levels

C

1. At the second level of the customer value hierarchy, the marketer has to turn the _____ into a(n) _____.

A. basic product; expected product

B. expected product; augmented product

C. core benefit; basic product

D. basic need; basic product

E. basic need; core benefit

2. At the third level of the customer value hierarchy, the marketer prepares a(n) _____, a set of attributes and conditions buyers normally expect when they purchase this product.

A. potential product

B. expected product

C. augmented product

D. basic product

E. anticipated product

Five Product Levels

B

2. At the third level of the customer value hierarchy, the marketer prepares a(n) _____, a set of attributes and conditions buyers normally expect when they purchase this product.

A. potential product

B. expected product

C. augmented product

D. basic product

E. anticipated product

3. When a service firm requires both a fixed fee plus a variable usage fee, this is called _____.

A. variable pricing

B. optional pricing

C. captive pricing

D. two-part pricing

E. bundled pricing

Two Part Pricing

• Service firms engage in Two Part Pricing, consisting of a fixed fee plus a variable usage fee.

• Telephone users pay a minimum monthly fee plus charges for calls beyond certain areas.

3. When a service firm requires both a fixed fee plus a variable usage fee, this is called _____.

A. variable pricing

B. optional pricing

C. captive pricing

D. two-part pricing

E. bundled pricing

4. _____ is defined as all activities of designing and producing the container for a product.

A. Designing

B. Packaging

C. Containerizing

D. Shipping

E. Marketing

Packaging Objectives

• Identify the brand• Convey descriptive and persuasive information• Facilitate product transportation and protection• Assist at-home storage• Aid product consumption

We define Packaging as all the activities of designing and producing the container for a product.

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What is the Fifth P?

Packaging, sometimes called the fifth P, is all the activities of designing and producing the container

for a product.

4. _____ is defined as all activities of designing and producing the container for a product.

A. Designing

B. Packaging

C. Containerizing

D. Shipping

E. Marketing

5. A refrigerator is an example of a(n) _____.

A. staple good

B. nondurable good

C. durable good

D. industrial good

E. non-consumer good

Durability and Tangibility

Nondurablegoods

ServicesDurablegoods

Durable good

• Tangible goods that normally survive many uses; Refrigerators, machine tools, and clothing.

• Durable products normally require more personal selling and service, command a higher margin, and require more seller guarantees.

5. A refrigerator is an example of a(n) _____.

A. staple good

B. nondurable good

C. durable good

D. industrial good

E. non-consumer good

6. A Mercedes is an example of a(n) _____ good because interested buyers will travel far to buy one.

A. durable

B. nondurable

C. specialty

D. shopping

E. unsought

Consumer Goods Classification

Convenience

Unsought

Shopping

Specialty

Specialty goods

• Have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort.

6. A Mercedes is an example of a(n) _____ good because interested buyers will travel far to buy one.

A. durable

B. nondurable

C. specialty

D. shopping

E. unsought

7. Proctor and Gamble produces many different product lines. This is an example of the _____ of the company's product mix.

A. offerings

B. consistency

C. width

D. breadth

E. depth

Product Systems and Mixes

• Product system• Product mix• Product assortment• Depth• Length• Width• Consistency

Depth

• The depth of a product mix refers to how many variants are offered of each product in the lin.

7. Tide produces many different distinct variants like liquid and powder detergant. This is an example of the _____ of the company's product mix.

A. offerings

B. consistency

C. width

D. breadth

E. depth

8.The number of different product lines that a company carries in its mix is referred to as the _____ of the product mix.

A. depth

B. length

C. width

D. breadth

E. consistency

Width

• The width of a product mix refers to how many different product lines the company carries.

• Proctor and Gamble produces many different product lines

8.The number of different product lines that a company carries in its mix is referred to as the _____ of the product mix.

A. depth

B. length

C. width

D. breadth

E. consistency

9. A company can classify its products into four types. Which type of product produces a high sales volume and is heavily promoted but has low margins because it is viewed as an undifferentiated commodity?

A. core product

B. staple product

C. specialty product

D. convenience items

E. shopping goods

Product Line Analysis

Core product

Convenience items

Staples

Specialties

Core Products

• Basic laptop computers that produce high sales volume and are heavily promoted but with low margins because they are viewed as undifferentiated commodities.

9. A company can classify its products into four types. Which type of product produces a high sales volume and is heavily promoted but has low margins because it is viewed as an undifferentiated commodity?

A. core product

B. staple product

C. specialty product

D. convenience items

E. shopping goods

10. A company may wish to enter the high end of the market for more growth, higher margins, or simply to position themselves as full-line manufacturers. This is called a(n) _____.

A. two-way stretch

B. up-market stretch

C. down-market stretch

D. sideways stretch

E. high-end stretch

Line Stretching

Down-Market StretchDown-Market Stretch

Up-Market StretchUp-Market Stretch

Two-Way StretchTwo-Way Stretch

Up-Market Stretch

• One of the ways a company may stretch its product lines. Here, company may introduce a new product/brand/model on the higher side of the market with more features, more quality, higher price or adding any other new variable.

• The company does to enter the high end of the market for more growth, higher margins, or simply to position itself as full-line manufacturer.

10. A company may wish to enter the high end of the market for more growth, higher margins, or simply to position themselves as full-line manufacturers. This is called a(n) _____.

A. two-way stretch

B. up-market stretch

C. down-market stretch

D. sideways stretch

E. high-end stretch

Top 10 Learning Questions for

Setting Product strategy Ch 12

Maryam EftekharDec/2/2010