Chapter 10: Product Concepts

These flashcards cover key concepts from Chapter 10 on product concepts including definitions, types of products, branding strategies, packaging functions, and warranty information.

Product

Everything that a person receives in an exchange, including tangible goods and intangible services.

Product Classification Types

The four types include convenience products, shopping products, specialty products, and unsought products.

Convenience Product

A relatively inexpensive item that merits little shopping effort, usually bought without much planning.

Shopping Product

A product that requires comparison shopping because it is more expensive than a convenience product and found in fewer stores.

Specialty Product

An item for which consumers search extensively and are very reluctant to accept substitutes, often associated with selective advertising.

Unsought Product

A product unknown to the potential buyer or a known product that the buyer does not actively seek.

Product Item

A specific version of a product that can be designated as a distinct offering among an organization’s products.

Product Line

A group of closely related product items.

Product Mix

All products that an organization sells.

Brand

A name, term, symbol, design, or combination that identifies a seller’s products and differentiates them from competitors.

Brand Name

That part of a brand that can be spoken, including letters, words, and numbers.

Brand Equity

The value of a company or brand name.

Global Brand

A brand that obtains at least one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data

Brand Loyalty

Consistent preference for one brand over all others.

Individual Branding

Using different brand names for different products.

Family Branding

Marketing several different products under the same brand name.

Co-Branding

Placing two or more brand names on a product or its package.

Packaging Functions

Contain and protect products, promote products, facilitate storage and use, and reduce environmental damage.

Persuasive Labeling

Package labeling that focuses on a promotional theme or logo; consumer information is secondary.

Informational Labeling

Designed to help consumers make proper product selections and lower cognitive dissonance.

Warranty

A confirmation of the quality or performance of a good or service.

Express Warranty

A written guarantee.

Implied Warranty

An unwritten guarantee that the good or service is fit for the purpose for which it was sold.

Manufacturers’ brand

The brand name of a manufacturer 

Captive brand

−A brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation

Product Modification

Changing one or more of a product’s characteristics

Quality Modification

a change in a product’s dependability or durability to lower the price or help the firm compete with rival firms

Functional Modification

a change in a product’s versatility, effectiveness, convenience, or safety 

Style Modification

a change in how the product looks

Planned Obsolescence

The practice of modifying products so those that have already been sold become obsolete before they actually need replacement

Product Line Extension

Adding additional products to an existing product line to compete more broadly in the industry

Business Product

– used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers

Consumer Product

bought to satisfy an individual’s personal wants or needs