Types of Products and Consumer Behavior
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Questions and Answers

What strategy involves entering a new market with an existing product?

  • Product Development
  • Product Penetration
  • Market Penetration
  • Market Development (correct)
  • The Decline stage of the Product Life Cycle is characterized by increasing sales.

    False

    List two reasons why branding is important in product strategy.

    1. Enables consumers to easily distinguish one product from another. 2. Enables the owner to communicate the benefits of the product vs. competition.

    Packaging is known as the __________ salesman in the store.

    <p>silent</p> Signup and view all the answers

    Match the following stages of the Product Life Cycle with their descriptions:

    <p>Introduction = This is when you inform the market about your new product. Growth = This is when the product sales starts to pick up. Maturity = Product sales starts to plateau. Decline = Product sales starts to fall off.</p> Signup and view all the answers

    Which of the following is NOT a basic step in developing a Public Relations program?

    <p>Event Management</p> Signup and view all the answers

    Evaluation in Public Relations assesses what was done during the PR campaign.

    <p>False</p> Signup and view all the answers

    Which of the following is not a criterion for choosing packaging materials?

    <p>Color preference of the target market</p> Signup and view all the answers

    Name one type of pricing strategy used in the market.

    <p>Cost-plus pricing</p> Signup and view all the answers

    Name two types of Public Relations tools.

    <p>Press/news release, Special events</p> Signup and view all the answers

    If a sign announcing a circus is placed on the back of an elephant, that is called __________.

    <p>promotion</p> Signup and view all the answers

    A well-designed package can help attract consumers at the point of sale.

    <p>True</p> Signup and view all the answers

    Match the following PR tools with their descriptions:

    <p>Press/News Release = Official statements to the media Special Events = Organized occasions for public engagement Sponsorships or Partnerships = Collaborative marketing efforts Policy Reform = Changing local or national policies Advertorials = Advertisements that resemble editorial content</p> Signup and view all the answers

    What is the purpose of random discounting?

    <p>To attract consumers and maximize profit through occasional discounts</p> Signup and view all the answers

    Penetration pricing involves setting a high price initially to gain market share.

    <p>False</p> Signup and view all the answers

    What is an example of secondary market discounting?

    <p>generics market</p> Signup and view all the answers

    The pricing strategy where products complement each other, such as Gillette razors and blades, is known as __________.

    <p>two-part pricing</p> Signup and view all the answers

    Match the following pricing strategies with their descriptions:

    <p>Premium Pricing = Set high price by offering unique features Product Bundle Pricing = Combine several products for a cheaper price Loss-Leader Pricing = Drop prices to attract consumers hoping for increased volume Geographic Pricing = Set different prices based on location</p> Signup and view all the answers

    Which pricing strategy involves high prices at introduction that decrease over time?

    <p>Price Skimming</p> Signup and view all the answers

    Geographic pricing considers the location of customers when determining product prices.

    <p>True</p> Signup and view all the answers

    What is the objective of using premium pricing?

    <p>to signal high quality</p> Signup and view all the answers

    Which type of product is considered a durable good?

    <p>Durables</p> Signup and view all the answers

    Specialty goods require little effort and have the lowest risk for buyers.

    <p>False</p> Signup and view all the answers

    What describes the core level of a product?

    <p>The core level refers to the generic benefit that each product provides.</p> Signup and view all the answers

    A product that is intangible and cannot be physically touched is referred to as a ______.

    <p>service</p> Signup and view all the answers

    Match each type of product with its description:

    <p>Shopping goods = Products worth comparing due to higher effort Specialty goods = Unique products with no substitutes Convenience goods = Low effort, low risk, widely available Preference goods = Products that consumers have brand loyalty for</p> Signup and view all the answers

    Which of the following describes a situation where there is an opportunity for a new product in an existing market?

    <p>Market Penetration</p> Signup and view all the answers

    Generic products provide essential benefits to consumers.

    <p>True</p> Signup and view all the answers

    What are the three types of products based on consumption?

    <p>Durables, Non-Durables, Services</p> Signup and view all the answers

    Which type of channel of distribution does NOT take title of the goods and mainly operates in international markets?

    <p>Agents</p> Signup and view all the answers

    Retailers primarily sell to wholesalers.

    <p>False</p> Signup and view all the answers

    Name one advantage of franchising as a distribution method.

    <p>Accelerated method of expanded distribution</p> Signup and view all the answers

    In the promotional/message objectives, the 'C' in AIDA stands for __________.

    <p>DESIRE</p> Signup and view all the answers

    Match the following types of advertising with their purposes:

    <p>Classified Advertising = To inform about local services Promotional Advertising = To stimulate demand for a brand Publicity = To offer a positive image of the brand Direct Marketing = To get the customer to buy</p> Signup and view all the answers

    Which tool in the marketing mix is primarily used to convince customers to buy immediately?

    <p>Promotions</p> Signup and view all the answers

    Home delivery is an example of addressing buyer convenience issues.

    <p>True</p> Signup and view all the answers

    What do wholesalers primarily do?

    <p>Buy from producers and sell small quantities to retailers</p> Signup and view all the answers

    What is the main purpose of advocacy advertising?

    <p>To influence public opinion</p> Signup and view all the answers

    Institutional advertising focuses on promoting specific products.

    <p>False</p> Signup and view all the answers

    Name one way of creating an advertisement.

    <p>Scientific evidence</p> Signup and view all the answers

    The qualitative value of an ad that measures consumer interest in the brand is called __________.

    <p>Impact</p> Signup and view all the answers

    Match the forms of media with their descriptions:

    <p>Television = Visual and audio advertisement Print = Physical advertisements in newspapers and magazines New Media = Digital platforms including social media Radio = Audio-only advertisements</p> Signup and view all the answers

    Which of the following is NOT a type of consumer promotion?

    <p>Cooperative advertising</p> Signup and view all the answers

    Frequency refers to the number of consumers exposed to an ad at least once.

    <p>False</p> Signup and view all the answers

    Name one type of trade promotion.

    <p>Rebates and rewards</p> Signup and view all the answers

    Study Notes

    Consumption and Tangibility

    • Three types of products based on consumption and tangibility:
      • Durables (stronger repeat purchases)
      • Non-Durables (long intervals between repeat purchases)
      • Services (intangible, no physical product)

    Effort and Risk

    • Four types of products based on effort and risk:
      • Convenience goods (little effort, lowest risk, no buyer loyalty, parity priced)
      • Shopping goods (buyer feels effort is worth it, compares products, higher price, infrequent purchase)
      • Specialty goods (unique, customized products, no substitutes, highest effort and risk, high product loyalty)
      • Preference goods (lesser risk, buyer loyalty, willing to take substitutes, more parity in quality)

    Product Levels

    • Three levels of products related to consumer needs:
      • Core product (generic benefit, e.g., good cooked food)
      • Formal product (extras built-in, e.g., warranty, cooking lessons)
      • Augmented product (tangible product, e.g., cookware system)

    Product Opportunities for Company Growth

    • Three opportunities for product growth related to the market:
      • Market penetration (existing product in existing market)
      • Product development (new product in an existing market)
      • Market development (existing product in new market)

    Product Life Cycle

    • Stages of the Product Life Cycle:
      • Introductory (new product, product sales starts to pick up)
      • Growth (product is already patronized regularly)
      • Maturity (product sales starts to fall off)
      • Decline (product sales stops)

    Branding Strategies

    • Reasons for branding a product:
      • Brand identification (enable consumers to easily distinguish one product from another)
      • Goodwill (enable brand owner to enjoy the goodwill associated with same)
      • Benefit communication (enable the owner to communicate the benefits of the product)

    Promotion Criteria

    • Criteria for choosing packaging materials:
      • Size
      • Cost
      • Protection
      • Display value
      • Convenience
      • Design/Attractiveness

    Pricing Strategies

    • Types of pricing strategies:
      • Random discounting (occasionally using sales prices and special discounts)
      • Off-peak pricing (prices higher during peak times - introduction of new products, etc.)
      • Secondary market discounting (lower prices for secondary markets)
      • Penetration pricing (low initial price to gain market share)
      • Geographic pricing (different prices by location)
      • Premium pricing (high price for unique features)
      • Product bundle pricing (combining products for a lower overall price)
      • Two-part pricing (fixed fee plus variable fee)
      • Loss-leader pricing (lower price on one item to attract consumers)

    Distribution Mix

    • Elements of an effective distribution mix:
      • Placement (proper types of outlet)
      • Coverage (product availability in outlets)
      • Display/Visibility (good inventory display)
      • Pricing (incentives for dealers)
      • Goodwill (win-win partnerships)

    Distribution Channels

    • Types of distribution channels:
      • Distributors
      • Wholesalers
      • Retailers
      • Franchising
      • Agents
      • Internet/E-commerce
      • Home delivery

    Marketing Mix Tools

    • Four major marketing tools: (Information not wholly found in the provided text, other aspects of the subject matter are implied.)

    Advertising Objectives

    • Objectives for promotional/advertising messages:
      • Grab attention
      • Excite interest
      • Create desire
      • Prompt action

    Advertising Types

    • Types of advertising:
      • Classified advertising (advertising opportunities)
      • Advocacy advertising (convincing about causes)
      • Brand advertising (stimulating a brand's demand)
      • Promotional advertising (promotional activities)
      • Institutional advertising (building goodwill)
      • Mass advertising

    Advertising Mix Elements

    • Elements of the advertising mix:
      • Message/Positioning
      • Media selection
      • Advertising budget
      • Media scheduling
      • Copy execution
      • Advertising testing/evaluation

    Advertising Styles/Execution

    • Creative executional styles or handles:
      • Scientific evidence
      • Slice-of-life
      • Image

    Media Planning Parameters

    • Media planning parameters:
      • Frequency (number of times exposed to an ad)
      • Reach (number of times consumers are reached)
      • Impact (qualitative value, beyond recall, consumer interest)

    Media Types

    • Types of media:
      • Television
      • Print
      • New media

    Trade Promotions

    • Trade promotions categories:
      • Rebates and rewards

    Public Relations (PR) Steps

    • PR program steps:
      • Research
      • Planning
      • Communication
      • Evaluation

    Public Relations Tools

    • PR tools:
      • Press/news releases
      • Special events
      • Sponsorships/partnerships
      • Policy reform
      • Editorials/advertorials

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    Description

    This quiz explores various types of products based on consumption, tangibility, effort, and risk. You'll learn about durables, non-durables, services, convenience goods, shopping goods, specialty goods, and more. Test your knowledge on how these classifications impact consumer behavior.

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