10 Questions
What is the primary purpose of a product or service, according to the definition?
To satisfy consumer needs and wants
What is the primary basis for product classifications?
The intended target market for the product
What type of product classification would a refrigerator fall under?
Shopping product
What is an example of a business service?
A consulting firm that provides advice to businesses
What is the term for a product that consumers do not typically think about buying until they need it?
Unsought product
What is a key characteristic of a specialty product?
It is a unique or high-end product.
What is the main difference between consumer and business products?
The intended user of the product.
What type of product would a company's employee training program be classified as?
Business service
What is an example of an MRO product?
A light bulb
What is a characteristic of an unsought product?
It is not typically thought about until needed.
Study Notes
Product Definition
- A product or service is offered by an organization to satisfy consumer needs and wants.
- A product consists of three components: the benefit, the core product, and any augmentations.
Product Classifications
- Products are classified based on their intended target market: consumers or businesses.
Consumer Product Classifications
- Convenience products: designed to save time and effort.
- Shopping products: compared and evaluated before purchase.
- Specialty products: unique and often purchased after careful consideration.
- Unsought products: not necessarily desired or sought by consumers.
Business Product Classifications
- Installations: major capital expenditures.
- Accessories: used to support or maintain other products.
- MROs (Maintenance, Repairs, and Operating) supplies: used to support daily operations.
- Raw materials: used to manufacture other products.
- Processed/component materials: used to create other products.
- Business services: intangible products that offer benefits to businesses.
Product Definition
- A product or service is offered by an organization to satisfy consumer needs and wants.
- A product consists of three components: the benefit, the core product, and any augmentations.
Product Classifications
- Products are classified based on their intended target market: consumers or businesses.
Consumer Product Classifications
- Convenience products: designed to save time and effort.
- Shopping products: compared and evaluated before purchase.
- Specialty products: unique and often purchased after careful consideration.
- Unsought products: not necessarily desired or sought by consumers.
Business Product Classifications
- Installations: major capital expenditures.
- Accessories: used to support or maintain other products.
- MROs (Maintenance, Repairs, and Operating) supplies: used to support daily operations.
- Raw materials: used to manufacture other products.
- Processed/component materials: used to create other products.
- Business services: intangible products that offer benefits to businesses.
Understand the different types of products and how they are classified based on their intended use and target audience. Learn about consumer and business product classifications and their subcategories.
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