34 Questions
What is a product?
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need
What is a key characteristic that distinguishes services from physical products?
Services are always intangible and do not result in the ownership of anything
What is an example of a product that combines physical and intangible elements?
A hotel stay
What is the term for the range of products offered by a company?
Product mix
Why are services often more challenging to market than physical products?
Because services are intangible and do not result in the ownership of anything
What is the term for the process of building and managing a brand?
Brand strategy
What is the term for extending an existing brand name to new forms, sizes, and flavors of an existing product category?
Line Extension
What is the term for introducing new brand names in the same product category?
Multibrand
What is the term for introducing new brand names in new product categories?
New Brands
What is the benefit of consistency in branding?
All of the above
What is the term for a brand that is owned by a manufacturer?
Manufacturer's Brand
What is the term for a brand that is sponsored by another brand?
Brand Sponsorship
What is the term for extending an existing brand name to new product categories?
Brand Extension
What is the term for a brand that is owned by a retailer?
Private Brand
What is a product line?
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, or fall within given price ranges
What is the term for the number of items in a product line?
Line length
Which of the following is an example of a product line?
Gap, Old Navy, and Banana Republic
What is the term for lengthening a product line beyond its current range?
Stretching
What is the term for a particular seller's entire set of product lines and items?
Product mix
What is the opposite of stretching a product line?
Filling
What is the ultimate outcome of the Service Profit Chain?
Profits and Growth
What is the benefit of focusing on internal service quality?
Improved employee productivity
What is the primary driver of customer satisfaction and loyalty?
Value
What is the outcome of satisfied and loyal customers?
Greater profits and growth
What is the foundation of the Service Profit Chain?
Employee Satisfaction
What is the result of increased employee satisfaction and internal service quality?
Satisfied and loyal customers
What is depth in the context of product mix?
The number of versions of each product
What is the main difference between inseparability and variability in services?
Inseparability refers to the provider, while variability refers to the quality of service
Which of the following is a characteristic of services?
Perishability
What is the term for the total number of products offered by a company?
Length
Which of the following best describes consistency in product mix?
The similarity of products within a product line
What is the main difference between intangibility and variability in services?
Intangibility refers to the fact that services cannot be seen, while variability refers to the fact that the quality of service depends on who provides it
What is the term for the range of different product lines offered by a company?
Width
Which of the following is NOT a characteristic of services?
Durability
Study Notes
Products, Services, and Brands
- A product is anything that can be offered to a market to satisfy a want or need, including physical products, services, events, persons, places, organizations, ideas, and combinations of these.
- Services are intangible and do not result in the ownership of anything, but rather offer an activity, benefit, or satisfaction.
Classifications of Products and Services
- Physical products
- Services
- Events
- Persons
- Places
- Organizations
- Ideas
- Combinations of the above
Brand Strategy
- Brand equity: the value of a brand to a consumer
- Brand awareness: the extent to which a brand is known by potential customers
- Brand association: the mental links that customers make with a brand
- Brand loyalty: the degree to which customers are committed to a brand
- Brand credibility: how believable and trustworthy a brand is
- Brand identification: the extent to which a brand is recognized and differentiated from others
Brand Development
- Manufacturer's brand: a brand owned and operated by a manufacturer
- Private brand: a brand owned and operated by a retailer
- Licensed brand: a brand licensed by one company to another
- Co-branding: partnering with another company to create a new brand
- Brand sponsorship: partnering with an event or organization to increase brand visibility
Product Line Decisions
- A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
- Product line length: the number of items in a product line
- Product line width: the number of different product lines offered
- Line extension: extending an existing brand name to new forms, sizes, and flavors of an existing product category
- Brand extension: extending an existing brand name to new product categories
Product Mix Decisions
- A product mix is the combination of all the product lines and items that a particular seller offers for sale
- Product mix depth: the number of versions of each product
- Product mix length: the total number of items across all product lines
- Product mix width: the number of different product lines offered
Characteristics of Services
- Intangibility: services cannot be seen, tasted, felt, heard, or smelled before purchase
- Inseparability: services cannot be separated from service providers
- Variability: the quality of services depends on who provides them, when, where, and how
- Perishability: services cannot be stored for later sale or use
The Service Profit Chain
- Internal service quality: the quality of service provided to employees
- Employee satisfaction and loyalty: the degree to which employees are satisfied and committed to an organization
- External service quality: the quality of service provided to customers
- Customer satisfaction and loyalty: the degree to which customers are satisfied and committed to an organization
- Revenue growth and profitability: the financial results of a company's service efforts
Learn about the different types of products and services, including physical products, services, events, and more. Understand the classifications and differences between them.
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