MKT 350 Test 3 Pham with Accurate
Solutions
Line Extension - ANSWER-development of product that is closely related to existing
products in the line, but meets different customer needs
Product modifications - ANSWER-changes in one or more product characteristics,
original product doesn't remain in the line
3 Ways to modify a product - ANSWER-Quality, functional, aesthetic
Product modification: Quality - ANSWER-changes in material or production process
related to dependability and durability. Can reduce quality to offer low price or increase
quality to gain competitive advantage.
Product modification: Functional - ANSWER-changes affecting versatility, effectiveness,
convenience, and safety. usually requires product redesign
Product modification: Aesthetic - ANSWER-changes to sensory appeal (taste,extra,
sound, smell, appearance [ex; new flavor/color])
Product deletion process - ANSWER-1. Product Line Review
2. Deletion Analysis
3. Deletion decision
4a. Return to line
4b. Delete (DOG)
(if delete) - i. phase out
ii. run out
iii. immediate drop
Phase out (deletion process) - ANSWER-let product decline without changing marketing
strategy (withering on vine)
Run Out (deletion process) - ANSWER-exploit any remaining strengths - reduce price,
put on clearance, increase marketing efforts and gradually move it out of the poor
market and keep it in the good market [ex; yankee candle]
Immediate Drop (deletion process) - ANSWER-drop to prevent any loss [samsung 7]
Intangibility - ANSWER-services or actions that have no permanent physical qualities
which can't be touched and possessed overtime
, * Refer to intangibility chart/photo
Inseparability - ANSWER-Inseparability of Production & Consumption: production of a
service that cannot be separated from its consumption by the customer
- ***can't make in advance/can't be pre-produced***
- produced, sold, and consumed at the same time
- ex; haircut, putting video online for us to watch?
- customer can control service outcome (happy/good mood)
Perishability - ANSWER-services that cannot be produce ahead of time and stored until
needed
- unused capacity is lost forever (in the travel industry, unused hotel room is something
you can't get back tomorrow)
- balance supply and demand (have to use demand baed planning everyday you come
in and make sure it's full - why hotels book in advance)
- reservations and appointments
Heterogeneity - ANSWER-"Variability"
Variation in the quality of services delivered by individuals and organizations
Marketing Channels (distribution) - ANSWER-short or direct channels
- customers go into service facility
- services are brought to consumer (uber eats)
- provided at arm's length with no face-to-face contact
supply and demand management
- appts and scheduling
- multiple service sits
- replace contact personnel with equipment
Pricing of services (5) - ANSWER-Performance/task basked
Time based
Demand based
Budding or unit pricing
As a quality Indicator
Pricing: Task-based - ANSWER-Price per task done - 1 thing - pay for everything done
then and there 1 time
Pricing: Time-based - ANSWER-Ex; lawyer or accountant
time is paid for every hour
Pricing: Demand-based - ANSWER-Ex; travel/Regal's $5 Tuesdays
Supply and Demand
Overcome perishability
Solutions
Line Extension - ANSWER-development of product that is closely related to existing
products in the line, but meets different customer needs
Product modifications - ANSWER-changes in one or more product characteristics,
original product doesn't remain in the line
3 Ways to modify a product - ANSWER-Quality, functional, aesthetic
Product modification: Quality - ANSWER-changes in material or production process
related to dependability and durability. Can reduce quality to offer low price or increase
quality to gain competitive advantage.
Product modification: Functional - ANSWER-changes affecting versatility, effectiveness,
convenience, and safety. usually requires product redesign
Product modification: Aesthetic - ANSWER-changes to sensory appeal (taste,extra,
sound, smell, appearance [ex; new flavor/color])
Product deletion process - ANSWER-1. Product Line Review
2. Deletion Analysis
3. Deletion decision
4a. Return to line
4b. Delete (DOG)
(if delete) - i. phase out
ii. run out
iii. immediate drop
Phase out (deletion process) - ANSWER-let product decline without changing marketing
strategy (withering on vine)
Run Out (deletion process) - ANSWER-exploit any remaining strengths - reduce price,
put on clearance, increase marketing efforts and gradually move it out of the poor
market and keep it in the good market [ex; yankee candle]
Immediate Drop (deletion process) - ANSWER-drop to prevent any loss [samsung 7]
Intangibility - ANSWER-services or actions that have no permanent physical qualities
which can't be touched and possessed overtime
, * Refer to intangibility chart/photo
Inseparability - ANSWER-Inseparability of Production & Consumption: production of a
service that cannot be separated from its consumption by the customer
- ***can't make in advance/can't be pre-produced***
- produced, sold, and consumed at the same time
- ex; haircut, putting video online for us to watch?
- customer can control service outcome (happy/good mood)
Perishability - ANSWER-services that cannot be produce ahead of time and stored until
needed
- unused capacity is lost forever (in the travel industry, unused hotel room is something
you can't get back tomorrow)
- balance supply and demand (have to use demand baed planning everyday you come
in and make sure it's full - why hotels book in advance)
- reservations and appointments
Heterogeneity - ANSWER-"Variability"
Variation in the quality of services delivered by individuals and organizations
Marketing Channels (distribution) - ANSWER-short or direct channels
- customers go into service facility
- services are brought to consumer (uber eats)
- provided at arm's length with no face-to-face contact
supply and demand management
- appts and scheduling
- multiple service sits
- replace contact personnel with equipment
Pricing of services (5) - ANSWER-Performance/task basked
Time based
Demand based
Budding or unit pricing
As a quality Indicator
Pricing: Task-based - ANSWER-Price per task done - 1 thing - pay for everything done
then and there 1 time
Pricing: Time-based - ANSWER-Ex; lawyer or accountant
time is paid for every hour
Pricing: Demand-based - ANSWER-Ex; travel/Regal's $5 Tuesdays
Supply and Demand
Overcome perishability
