Marketing Exam Test 3 Content

core customer value

the basic problem-solving benefits that customers are seeking

parts of an actual product

• brand name

• packaging

• features / design

• quality level

associated services (augmented product)

non-physical aspects of the product , such as product warranties, financing, product support, and after-sale service

consumer products

products and services used by people for their personal use

four types of consumer products

specialty, shopping, convenience, unsought

consumer products - speciality

• those for which customers express such a strong preference (give lots of efforts to search)

• typically high priced, and buyers do not use much time to compare against other products

• purchased less frequently

  • i.e sports car, designer clothing, exotic perfumes, luxury watches

consumer products - shopping

• products or services for which consumers will spend a fair amount of time comparing alternatives

• require personal selling and advertising and are in fewer outlets

• i.e furniture, apparel, fragrances, appliances, cell phones and travel

• consumers usually compare attributes of shopping products such as quality, price, and style

consumer products - convenience

• products or services for which the consumer is not willing to expend any effort to evaluate prior to purchase

• bought the most frequently

• bought immediately and without great comparison

• typically low-prices, not-differentiated; widely distributed

• i.e sugar, laundry detergent, pencils, paper

consumer products - unsought

• products or services that consumer either do not normally think about buying, do not know about, or would not buy under normal circumstances

• products and companies are not top of mind until needed

• i.e diamond rings, funeral services, life insurance, and fire extinguishers

product mix

complete set of all products and services offered by a firmp

product lines

groups of associated items that consumers tend to use together or think of as a part of a group of similar products

product mix breadth

count of the number of product lines offered by the firm

product line depth

equals the number of products within a product line

why would you increase product mix breadth

firms often add new product lines to capture new or evolving markets (i.e a firm adds a whole new line of yogurt)

why would you decrease product mix breadth

may be too cotly