MKTG 480 Ch. 8, 9, and 10

customer advocacy

A willingness and ability on the part of a customer to participate in communicating the brand message to others within his or her sphere of influence.

enhanced product

Additional features, designs, or innovations that extend beyond the core product to exceed customer expectations.

service economy

An economy that is predominantly comprised of service-related jobs.

customer mind-set

An individual's belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.

stand-alone brands

Brands created to be separate from a company brand that can insulate the company if there is a problem with the brand.

general warranties

Broad promises about product performance and customer satisfaction.

product

Commonly used to denote anything that delivers value to satisfy a need or want, and includes physical merchandise, services, events, people, places, organizations, information, even ideas.

d. reducing features

Cost reduction is a specific method for introducing lower-cost products to the market. This may involve a. adding features b. using more expensive materials c. eliminating the warranty d. reducing features e. expanding the product line

c. reliability

The ________dimension of the SERVQUAL scale relates to delivering what is promised every time. a. responsiveness b. tangibles c. reliability d. empathy e. assurance

internal marketing

The application of marketing concepts and strategies inside an organization.

a. family branding

The brand name "'Burt's Bees" is used for a variety of products, including hand and face cream, lip balms, body wash, and makeup. This is an example of a ________Blank strategy. a. family branding b. national or store branding c. licensing d. co-branding e. stand-alone branding

perishability

The characteristic of a product or service in which it cannot be stored or saved for future use.

intangibility

The characteristic of a service in which it cannot be experienced through the physical senses of the consumer.

inseparability

The characteristic of a service in which it is produced and consumed at the same time and cannot be separated from its provider.

variability

The characteristic of a service in which its service quality can only be as good as that of its provider.

product mix

The combination of all the products offered by a firm.

perceived quality

The conveyed perception of quality of a brand that is either positive or negative.

family branding

The creation of brands that have synergy between them in terms of the overall company brand.

repairability

The ease of fixing a problem with a product.

MRO Supplies (maintenance, repair, operating)

The everyday items that a company needs to keep running.

service-profit chain

The formalization of linkages between employee and customer aspects of service delivery.

false 4 ways: 1) tangibility 2) durability 3) consumers goods 4) businesses goods

The four ways to classify a product are consumer, business, durability, and nondurability.

essential benefit

The fundamental need met by a product.

durability

The length of product usage.

product life cycle (PLC)

The life of a product that includes four stages: introduction, growth, maturity, and decline.

service-dominant logic

The logic that considers service and the customer experience to be the principal rationality of marketing.

style

The look and feel of a product.

false

The more co-branded products a company has, the stronger its brand image because of the increased exposure of the brand to the public.

brand awareness

The most basic form of brand equity is simply being aware of the brand. Awareness is the foundation of all other brand relationships.

reliability

The percentage of time a product works without failure or stoppage.

tangibility

The physical aspects of a product.

form

The physical elements of a product, such as size, shape, and color.

core product

The physical, tangible elements that make up a product's essential benefit.

service sector

The portion of an economy that is comprised of service-related jobs.

false

The primary purpose of the package is to promote product purchase.

d. business case analysis

The probability of a product's success is determined in the ________Blank stage of the product development process. a. idea screening b. idea generation c. product roll-out d. business case analysis e. marketing plan

customer expectations management

The process of making sure the firm does not set customer expectations so high that they cannot be effectively met on a consistent basis.

brand loyalty

The strongest form of brand equity, reflecting a commitment to repeat purchases.

e. offering

The terms ________ and product are interchangeable. a. service b. product item c. essential benefit d. consumer good e. offering

false

The three major types of attributes that can be evaluated for goods and services are physical, experience, and credence.

brand strategy

The unique elements of a brand that define the products sold by a firm.

true trial purchases: first-time sales. "new purchases" - product launch is critical to the long-term success of the product - products that start poorly rarely recover from a poor launch - create excitement - companies spend millions on a product launch

Trial purchase is a key focus in product launch because if you can get customers to try a new product, you can win them over with superior product design, features, and value.

specialty goods

Unique products in which consumers' purchase decision is based on a defining characteristic.

a. service recovery

When Jasper has to wait a long time for his takeout order, the server apologizes and offers him a coupon for $5 off his bill on the next visit. This is an example of a. service recovery b. a service gap c. service delivery d. a moment of truth e. internal service quality.

go-to-market mistake

When a company fails to stop a bad product idea from moving into product development.

stop-to-market mistake

When a product that is a good idea is prematurely eliminated during the screening process and ultimately never introduced to the market.

brand association

When customers develop a number of emotional, psychological, and performance associations with a brand. These associations become a primary purchase driver, particularly with brand loyal users.

fluctuating demand

When the level of consumer demand is not constant, having serious implications related to the perishability of services.

b. intangibility

While goods can be experienced through sensory perception, services cannot. This relates to the ________Blank characteristic of services. a. inseparability b. intangibility c. variability d. perishability e. customizability

b. information

Xia has decided to add the Hulu app to her Roku television. Her friends all watch Hulu and told her that it offers quality programming and is worth the cost. This is an example of which of the three roles that brands play in customer purchase decisions? a. strategy b. information c. communication d. protection e. competition

brand assets

Other assets brands possess such as trademarks and patents that represent a significant competitive advantage.

customer-centric

Placing the customer at the core of the enterprise and focusing on investments in customers over the long term.

false

Proctor and Gamble sells hair products, oral care products, soaps, detergents, baby care products, and personal care products. These make up the company's product line.

true

Goods incorporated into a manufacturer's process to create a finished product are called materials or parts.

disruptive innovation

Occurs when a new-to-the-world product is so super-innovative that it creates a fundamental change in the marketplace.

false 1) product's value proposition: what customer's needs are being addressed/at what price 2) identify the target market(s)/purchase frequency 3) product's characteristics (look, feel, physical elements, and features of the product)

Product definition has three objectives: define the product's value proposition, identify the key suppliers of raw materials and the nature of those markets, and define the product's characteristics.

nondurable product

Products that are usually consumed in a few uses and, in general, are of low cost to the consumer.

fads

Products that come and go quickly, often reaching only a limited number of individuals but creating a lot of buzz in the marketplace.

unsought goods

Products that consumers do not seek out and often would rather not purchase at all.

shopping goods

Products that require consumers to do research and compare across product dimensions like color, size, features, and price.

durable product

Products with a comparatively long product life that are often expensive.

1) image and information- brands convey about the product. without additional data, customers construct expectations about quality, service, even features based on the brand. 2) educate- brands educate the customer about the product. assign meaning to product experiences by brand. make judgements about which brands are best and which ones aren't at meeting their needs. product evaluations and purchase decisions become less formidable. customer relies on the cumulative brand experience to simplify the purchase process. 3) reassure- help customer in the purchase decision.

3 roles brands play in the customer purchase decision process:

1) stand-alone or family branding 2) national or store branding 3) licensing 4) co-branding

4 basic strategic decisions in defining a brand:

sustaining innovation

A newer and better version of an existing product that targets primarily existing customer.

offering

A product or service that delivers value to satisfy a need or want.

new-to-the-world product

A product that has not been available before or bears little resemblance to an existing product.

customer retention

Low propensity among a firm's customer base to consider switching to other providers.

capital goods

Major purchases in support of significant business functions.

materials

Natural or agricultural products that become part of the final product.

stock-keeping unit (SKU)

Unique identification numbers used in tracking products through a distribution system, inventory management, and pricing.

true

A customer's equity with a brand is the difference between the perceived benefits and costs associated with the brand.

product line

A group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction.

brand

A name, term, sign, symbol, or design, or a combination of these elements, intended to identify the goods or services of one seller or groups of sellers and to differentiate them from those of competitors.

service

A product that represents a bundle of benefits that can satisfy customer wants and needs without having physical form.

conformance

A product's ability to deliver on features and performance characteristics promised in marketing communications.

true

A service-profit chain helps managers understand the key links in a service delivery system that drive customer loyalty, revenue growth, and higher profits.

brand equity

A set of assets and liabilities linked to a brand's name and symbol that adds to or subtracts from the value provided by a product or service to a firm or that firm's customers.

d. brand loyalty

ABC Automobile Manufacturers is the leading brand in economy cars with respect to gas mileage. When the company decided to make hybrid versions of its cars, its current customers filled the waiting list. Which of the five key brand dimensions is best illustrated in this example? a. brand assets b. brand protection c. brand communication d. brand loyalty e. stand-alone branding

true

During the COVID-19 pandemic, rental car companies sold off much of their inventory because the demand wasn't there. Once people started needing rental cars again, there was a shortage of cars. This problem was a result of fluctuating demand.

parts

Equipment that is either fully assembled or in smaller pieces that will be assembled in larger components and then used in the production process.

specific warranties

Explicit product performance promises related to components of the product.

convenience goods

Frequently purchased, relatively low-cost products that customers have little interest in seeking new information about or considering other product options.

a. specific

A new blouse has a label that says it is guaranteed not to shrink or fade as long as it is dry-cleaned and not hand-washed. This is an example of a ________Blank warranty. a. specific b. general c. limited d. comprehensive e. usage

false specific warranties: automobile warranties are specific warranties covering various components of the product with different warranties.

A new car contains a warranty that covers various components of the car. This is a general warranty.

true

A service is a product without physical form.

cost reduction

A specific method for introducing lower-cost products that frequently focuses on value-oriented product price points in the product mix.

trade show

An industry- or company-sponsored event in which booths are set up for the dissemination of information about offerings to members of a channel.

innovation diffusion process

How long it takes a product to move from first purchase to last purchase (the last set of users to adopt the product).

true

In the gap model, the area below the line represents the provider side of the service encounter and the area above the line represents the customer side.

e. inconvenience

Kyra is frustrated with her primary care doctor's office. Every time she goes for an appointment, she sits in the waiting room for at least 45 minutes before the nurse calls her in. She is asking all her friends for the names of their doctors so she doesn't have to deal with this anymore. This demonstrates how ________Blank can cause switching behavior. a. ethical problems b. competition c. response to service failure d. pricing e. inconvenience

market test

Objective method of forecasting that involves placing a product in several representative geographic areas to see how well it performs and then projecting that experience to the market as a whole.

1) Intangibility 2) Inseparability 3.) Variability 4) Perishability

characteristics of services:

false brand identity is a summary of unique qualities attributed to the brand.

Brand strategy is a summary of unique qualities attributed to the brand.

e. protection

After months of in-home research, Kraft discovered that its customers often transferred Chips Ahoy cookies to jars to keep them from going stale. The company solved this problem by creating a patented resealable opening on the top of the bag. This is an example of the ________Blank objective of package design. a. usage promotion b. aesthetic c. communication d. harmony e. protection

business case analysis

An overall evaluation of a product that usually assesses the product's probability of success.

feature

Any product attribute or performance characteristic.

search attributes

Aspects of an offering that are physically observable before consumption.

c. unsought

Bailey bought a new car and needed insurance. She contacted her friend's agent and paid for 6 months. This is an example of a(n) ________good. a. durable b. specialty c. unsought d. business e. shopping

b. a service blueprint

Before Carmine opened his restaurant, he brought all his new employees in for training and showed them a diagram of all the activities that would take place, from first customer contact to the customer exiting the restaurant. Carmine created a. a service recovery b. a service blueprint c. a customer schematic d. an interaction chart e. development training.

c. convinced of the product's claims and value proposition before making a commitment.

The early majority represents a good portion of total product sales. Generally, this group needs to be a. cultivated with coupons to encourage product trial. b. singled out to be beta testers in the hope of future sales. c. convinced of the product's claims and value proposition before making a commitment. d. coerced into buying so they can be sure that the product will survive past its initial introduction. e. willing to pay premium price for a product.