MAR3032 EXAM 2 REVIEW TEST NOTES QUESTIONS AND ANSWERS
List and define the 4 I's of Services. - CORRECT ANSWER✅✅Inconsistency - services differ and are not
uniformly performed
Inseparability - consumers can't separate the service from the deliverer of the service
intangibility - services aren't physical, so they become harder for consumers to evaluate
inventory - *idle production capacity* happens when a service provider is available but there is no
demand for that service.
What are solutions to each of the 4 I's of service? - CORRECT ANSWER✅✅Intangibility - Personify
(example - Flo from progressive)
Inseparability - Have the consumer participate; consumer participation
Inconsistency - standardize, employee training
Inventory - Yield management
Distinguish product class from product form. - CORRECT ANSWER✅✅Product class is the broadest
category of similar products, where as product form is more specific within the product class. For
example, a product class is movies and a product form is comedies.
Distinguish product item, product line, and product mix. - CORRECT ANSWER✅✅Used at a company
level, a product item is the specific product, for example Dr. Pepper. A product line is a group of related
products, so Dr. Pepper sodas. A product mix is the total range of products that a company offers, so the
entire selection on the Dr. Pepper website.
Distinguish line, category, and brand extensions. - CORRECT ANSWER✅✅A product line is a group of
related products, so a line extension would entail adding a new product to the line. An example would
be a new Dr. Pepper flavor. A category extension expands the brand to a somewhat related category, so
Dr. Pepper introducing energy drinks. A brand extension is a brand that goes into a completely unrelated
industry, so Dr. Pepper going into cars.
List and define the different kinds of innovation or newness from a consumer's perspective. - CORRECT
ANSWER✅✅Continuous innovation doesn't require that consumers learn new behaviors.
Discontinuous innovation requires that consumer learn a whole new method of consumption.
List and define the 4 I's of Services. - CORRECT ANSWER✅✅Inconsistency - services differ and are not
uniformly performed
Inseparability - consumers can't separate the service from the deliverer of the service
intangibility - services aren't physical, so they become harder for consumers to evaluate
inventory - *idle production capacity* happens when a service provider is available but there is no
demand for that service.
What are solutions to each of the 4 I's of service? - CORRECT ANSWER✅✅Intangibility - Personify
(example - Flo from progressive)
Inseparability - Have the consumer participate; consumer participation
Inconsistency - standardize, employee training
Inventory - Yield management
Distinguish product class from product form. - CORRECT ANSWER✅✅Product class is the broadest
category of similar products, where as product form is more specific within the product class. For
example, a product class is movies and a product form is comedies.
Distinguish product item, product line, and product mix. - CORRECT ANSWER✅✅Used at a company
level, a product item is the specific product, for example Dr. Pepper. A product line is a group of related
products, so Dr. Pepper sodas. A product mix is the total range of products that a company offers, so the
entire selection on the Dr. Pepper website.
Distinguish line, category, and brand extensions. - CORRECT ANSWER✅✅A product line is a group of
related products, so a line extension would entail adding a new product to the line. An example would
be a new Dr. Pepper flavor. A category extension expands the brand to a somewhat related category, so
Dr. Pepper introducing energy drinks. A brand extension is a brand that goes into a completely unrelated
industry, so Dr. Pepper going into cars.
List and define the different kinds of innovation or newness from a consumer's perspective. - CORRECT
ANSWER✅✅Continuous innovation doesn't require that consumers learn new behaviors.
Discontinuous innovation requires that consumer learn a whole new method of consumption.
