MKTG 409 Chapter 10 Review MindTap Study Guide – Product Strategy, Branding & New
Product Development
product - ANS ✔✔a good, service, or an idea received in an exchange. it can either be tangible
or intangible and includes functional, social, and psychological benefits
service - ANS ✔✔is intangible, it is the result of the application of human and mechanical
efforts to people or objects
idea - ANS ✔✔a concept, philosophy, image, or issue. ideas provide psychological stimulation
that aids in solving problems or adjusting to the environment
a total product offering has 3 things - ANS ✔✔1. the core production itself
2. its supplemental features
3. its symbolic or experimental benefits
the core production itself - ANS ✔✔the product's main benefit and usually addresses the need
of the customer
its supplemental features - ANS ✔✔most consumer appreciate additional features to a product
such as apps on a phone that's main purpose is communication
*this helps differentiate the product from other similar products*
its symbolic or experimental benefits - ANS ✔✔for some customers, the simple act of chopping
brings them pleasure which improves their attitudes about the products they are buying
- the atmosphere and decor of a retail store, customer support, even the sounds and smells all
contribute to the experience element
products fall into 2 categories - ANS ✔✔1. consumer products
, 2. business products
consumer products - ANS ✔✔purchased to satisfy personal and family needs (their own
personal wants)
business products - ANS ✔✔purchased for the use in firm's operations, to resell, or to make
other products with (satisfies organizational goals)
4 categories of customer buying behavior - ANS ✔✔convenience
shopping
specialty
unsought products
*a single product may fit into multiple categories*
convenience products - ANS ✔✔Relatively inexpensive, frequently purchased items for which
buyers exert minimal purchasing effort such as groceries
- high turnover rate with small gross profit margins
shopping products - ANS ✔✔items for which buyers are willing to expend considerable effort in
planning and making purchases such as tv's and furniture
- buyers spend considerable time comparing stores and brands
- expected to last longer and thus are bought less frequently
- lower inventory turnover rates with higher gross profit margins
specialty products - ANS ✔✔possess one or more unique characteristics and generally buyers
are willing to expend considerable effort to obtain them such as fine jewelry and collector's
items
- the most expensive category
Product Development
product - ANS ✔✔a good, service, or an idea received in an exchange. it can either be tangible
or intangible and includes functional, social, and psychological benefits
service - ANS ✔✔is intangible, it is the result of the application of human and mechanical
efforts to people or objects
idea - ANS ✔✔a concept, philosophy, image, or issue. ideas provide psychological stimulation
that aids in solving problems or adjusting to the environment
a total product offering has 3 things - ANS ✔✔1. the core production itself
2. its supplemental features
3. its symbolic or experimental benefits
the core production itself - ANS ✔✔the product's main benefit and usually addresses the need
of the customer
its supplemental features - ANS ✔✔most consumer appreciate additional features to a product
such as apps on a phone that's main purpose is communication
*this helps differentiate the product from other similar products*
its symbolic or experimental benefits - ANS ✔✔for some customers, the simple act of chopping
brings them pleasure which improves their attitudes about the products they are buying
- the atmosphere and decor of a retail store, customer support, even the sounds and smells all
contribute to the experience element
products fall into 2 categories - ANS ✔✔1. consumer products
, 2. business products
consumer products - ANS ✔✔purchased to satisfy personal and family needs (their own
personal wants)
business products - ANS ✔✔purchased for the use in firm's operations, to resell, or to make
other products with (satisfies organizational goals)
4 categories of customer buying behavior - ANS ✔✔convenience
shopping
specialty
unsought products
*a single product may fit into multiple categories*
convenience products - ANS ✔✔Relatively inexpensive, frequently purchased items for which
buyers exert minimal purchasing effort such as groceries
- high turnover rate with small gross profit margins
shopping products - ANS ✔✔items for which buyers are willing to expend considerable effort in
planning and making purchases such as tv's and furniture
- buyers spend considerable time comparing stores and brands
- expected to last longer and thus are bought less frequently
- lower inventory turnover rates with higher gross profit margins
specialty products - ANS ✔✔possess one or more unique characteristics and generally buyers
are willing to expend considerable effort to obtain them such as fine jewelry and collector's
items
- the most expensive category
