60 Questions
What are products with a strong sensory or emotional component that play out for the customer over time called?
Experiences
Which of the following is not a classification of consumer products based on consumer shopping habits?
Industrial products
What are products that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible called?
Services
Which of the following is not an individual product decision?
Consumer shopping habits
What do industrial products include?
Materials and parts
What do services fall into?
Intangible products
What are the dimensions used to describe the product mix according to the text?
Width, length, depth, and consistency
What are the characteristics of services according to the text?
Intangible, inseparable, variable, and perishable
What is the focus of good service companies according to the text?
Both customers and employees
What are the options for brand sponsorship according to the text?
National brands, store brands, licensed brands, and co-branded products
What are the options for brand development according to the text?
Line extensions, brand extensions, multibrands, and new brands
Where does marketing mix planning begin according to the text?
Building an offering that brings value to target customers
What is the primary function of packaging according to the text?
Holding and protecting the product
What are the dimensions of a product mix according to the text?
Width, length, depth, and consistency
What are the four major lines in Colgate's product mix according to the text?
Oral care, personal care, home care, and pet care
What are the four special service characteristics according to the text?
Intangibility, inseparability, variability, and perishability
What does the service profit chain link according to the text?
Service customer satisfaction and firm profits with employee satisfaction
What is emphasized in service businesses according to the text?
The co-creation of the service by the customer and the front-line service employee
Which type of product involves activities to create, maintain, or change attitudes and behavior of target customers toward an organization?
Organization marketing
Which type of product is classified based on consumer buying behavior into convenience products, shopping products, specialty products, and unsought products?
Consumer products
What are items consumers do not know about or do not normally consider buying?
Unsought products
What type of products are unique items for which buyers are willing to make a special purchase effort?
Specialty products
Which type of product uses traditional business marketing concepts and tools to encourage behaviors that create individual and societal well-being?
Social marketing
At what levels do marketers make product and service decisions?
Individual product decisions, product line decisions, and product mix decisions
What is brand equity?
The effect of the brand name on customer emotions, attitudes, and behaviors
How can service firms combat price competition?
By differentiating service offerings, delivery, and image
What is a strategy where two or more brands are presented together to create a new product or service?
Co-branding
What is a key measure of service quality for service firms?
Customer retention
What can strong brands lead to, according to the text?
Increased customer willingness to pay
What is a valuable asset for companies, often exceeding the value of tangible assets?
Brands
Products and services fall into two broad classes based on the types of consumers who use them.
True
Individual product decisions involve product attributes, branding, packaging, labeling, and product support services.
True
Experiences are products with a strong sensory or emotional component that play out for the customer over time.
True
Industrial products are those purchased for further processing or for use in conducting a business.
True
Branding decisions include selecting a brand name and developing a brand strategy.
True
Services are products that consist of activities, benefits, or satisfactions offered for sale that are essentially tangible.
False
Companies make decisions about brand positioning, name selection, sponsorship, and development to build brands.
True
The product mix includes all product lines and items offered by a seller, described by dimensions: width, length, depth, and consistency.
False
Good service companies focus only on customers, neglecting the importance of employees.
False
Packaging provides only protection and promotion for products, neglecting economy and convenience.
False
Most companies produce a single product, rather than a product line.
False
Services are characterized by being tangible, separable, consistent, and non-perishable.
False
Convenience products are high-priced items that require minimal effort to purchase.
False
Shopping products are items that consumers compare carefully before purchasing.
True
Specialty products are commonly purchased items that consumers are familiar with.
False
Industrial products are purchased for further processing or for use in conducting a business.
True
Organization marketing involves activities to create, maintain, or change attitudes and behavior of target customers toward an organization.
True
Marketers make product and service decisions at four levels: individual product decisions, product line decisions, product mix decisions, and promotional decisions.
False
Packaging traditionally focused on holding and protecting the product, but poorly designed packages cannot lead to consumer frustration and lost sales.
False
Product strategy involves building a product line, which is a group of products closely related in function, customer groups, needs, marketing, or price range.
True
A product mix consists of all the product lines and items that a seller offers for sale, with dimensions of width, length, depth, and consistency.
False
Colgate's product mix is divided into three major lines: oral care, personal care, and home care, with numerous brands and items within each line.
False
Four special service characteristics—intangibility, inseparability, variability, and perishability—must be considered when designing marketing programs for products.
False
Successful service companies focus on the service profit chain, which links service customer satisfaction and firm profits with employee satisfaction through four links.
False
Strong brands lead to increased customer willingness to pay, bargaining leverage with resellers, and customer loyalty, serving as a barrier to potential competitors.
True
Co-branding involves presenting two or more brands together to create a new product or service.
True
Service firms do not face pressure to increase productivity through better training, improved workplace culture, and leveraging technology.
False
Customer satisfaction and loyalty are not crucial for service firms, leading to repeat purchases and referrals.
False
Brand equity is the effect of the brand name on customer emotions, attitudes, and behaviors, and it does not contribute to competitive and financial advantages.
False
Differentiating service offerings, delivery, and image is not essential to combat price competition and create a unique value proposition.
False
Study Notes
Effective Marketing and Branding in Service Industries
- Customer satisfaction and loyalty are crucial for service firms, leading to repeat purchases and referrals.
- Service quality is a key differentiator, with customer retention being a significant measure of quality.
- Service firms face pressure to increase productivity and can do so through better training, improved workplace culture, and leveraging technology.
- Brands are a valuable asset for companies, often exceeding the value of tangible assets, and can influence consumer emotions and behavior.
- Brand equity is the differential effect of the brand name on customer emotions, attitudes, and behaviors, and it contributes to competitive and financial advantages.
- Strong brands lead to increased customer willingness to pay, bargaining leverage with resellers, and customer loyalty, serving as a barrier to potential competitors.
- Brand positioning can occur at product attributes, national brands, store brands, licensing, and co-branding levels.
- Store brands have been gaining strength, and some companies opt for licensing well-known names or symbols for instant brand recognition.
- Co-branding is another strategy where two or more brands are presented together to create a new product or service.
- Differentiating service offerings, delivery, and image is essential to combat price competition and create a unique value proposition.
- Service firms need to focus on customer value creation, engagement, and service delivery to maintain a competitive edge.
- Technology can play a significant role in enhancing the efficiency and productivity of service industries.
Effective Marketing and Branding in Service Industries
- Customer satisfaction and loyalty are crucial for service firms, leading to repeat purchases and referrals.
- Service quality is a key differentiator, with customer retention being a significant measure of quality.
- Service firms face pressure to increase productivity and can do so through better training, improved workplace culture, and leveraging technology.
- Brands are a valuable asset for companies, often exceeding the value of tangible assets, and can influence consumer emotions and behavior.
- Brand equity is the differential effect of the brand name on customer emotions, attitudes, and behaviors, and it contributes to competitive and financial advantages.
- Strong brands lead to increased customer willingness to pay, bargaining leverage with resellers, and customer loyalty, serving as a barrier to potential competitors.
- Brand positioning can occur at product attributes, national brands, store brands, licensing, and co-branding levels.
- Store brands have been gaining strength, and some companies opt for licensing well-known names or symbols for instant brand recognition.
- Co-branding is another strategy where two or more brands are presented together to create a new product or service.
- Differentiating service offerings, delivery, and image is essential to combat price competition and create a unique value proposition.
- Service firms need to focus on customer value creation, engagement, and service delivery to maintain a competitive edge.
- Technology can play a significant role in enhancing the efficiency and productivity of service industries.
Test your knowledge on effective marketing and branding in service industries with this quiz. Explore key concepts such as customer satisfaction, brand equity, service quality, and the impact of technology on productivity. Evaluate your understanding of strategies like brand positioning, co-branding, and differentiation in creating a unique value proposition.
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