business marketing chapter 8

Impulse Purchase

A purchase made without any planning or search effort.

Consumer products

Consumer products are products and services bought by final consumers for personal consumption. -Convenience products -Shopping products -Specialty products -Unsought products

Convenience products

Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort. Frequent purchase; little planning, little comparison or shopping effort; low Customer involvement Low price Widespread distribution; Convenient locations Mass promotion by the producer Toothpaste, magazines, and laundry detergent, newspapers, candy, fast food

Shopping products

Shopping products are less frequently purchased consumer products and services that the customer compares carefully on suitability, quality, price, and style. Less frequent purchase; much planning and shopping effort; comparison of brands on price, quality, and style Higher price Selective distribution in fewer outlets Advertising and personal selling by both the producer and resellers Major appliances, televisions, furniture, and clothing, furniture, cars, appliances.

Specialty products

Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Strong brand preference and loyalty; special purchase effort; little comparison of brands; low price sensitivity High price Exclusive distribution in only one or a few outlets per market area More carefully targeted promotion by both the producer and resellers Luxury goods, such as Rolex watches or fine crystal, medical services, designer clothes, high-end electronics

Unsought products

Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying. Little product awareness or knowledge (or, if aware, little or even negative interest) Price varies Distribution varies Aggressive advertising and personal selling by the producer and resellers Life insurance, funeral services, blood donations

dynamically continuous innovation

a change in an existing product that requires a moderate amount of learning or behavior change

continuous innovation

a modification of an existing product that sets one brand apart from its competitors

discontinuous innovation

a totally new product that creates major changes in the way we live

nondurable goods

consumer products that provide benefits for a short time because they are consumed (such as food) or are no longer useful (such as newspapers)

durable goods

consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances

Service

is a product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.

Product

is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.