CHAPTER 7.

Q1: What is a product?

A: Anything offered to a market to satisfy a want or need. Includes goods, services, experiences, people, places, and ideas.

Q2: What is a service?

A: An intangible activity or benefit that doesn’t result in ownership and is consumed when provided.

Q3: What are the three levels of a product?

A:

1. Core customer value – what the customer is really buying

2. Actual product – design, brand name, features

3. Augmented product – additional services and benefits (e.g., warranty, delivery)

Q4: How are experiences different from products or services?

A: They combine goods/services with memorable customer interactions (e.g., Disney parks).

Q5: What are the four types of consumer products?

A:

1. Convenience – frequent, low effort (e.g., gum)

2. Shopping – compared carefully (e.g., shoes)

3. Specialty – unique characteristics, high loyalty (e.g., Rolex)

4. Unsought – not actively considered (e.g., life insurance)

Q6: What are industrial products?

A: Goods/services bought for further processing or business use (e.g., equipment, raw materials).

Q7: What are other marketable entities besides products/services?

A: Organizations, people, places, and ideas (e.g., city branding or public health campaigns).

Q8: What are the key individual product decisions?

A:

• Product attributes (quality, features, style)

• Branding

• Packaging

• Labeling

• Product support services

Q9: What is Total Quality Management (TQM)?

A: Company-wide commitment to continuous product quality improvement.

Q10: What does packaging do besides protect the product?

A: It markets, differentiates, adds convenience, and can enhance brand identity.

Q11: What is the role of labeling?

A: It identifies, describes, promotes, and meets legal and nutritional requirements.

Q12: What is a product line?

A: A group of closely related products (e.g., iPhone series).

Q13: What is line stretching vs. line filling?

A:

• Line stretching: Adding products above or below current range.

• Line filling: Adding within the current product range.

Q14: What is a product mix?

A: The entire set of products a company offers.

Q15: What are the four dimensions of a product mix?

A:

1. Width – number of product lines

2. Length – total number of products

3. Depth – versions per product

4. Consistency – how related the products are

Q16: What are the four characteristics of services?

A:

1. Intangibility

2. Inseparability

3. Variability

4. Perishability

Q17: What is the service profit chain?

A: A model linking employee satisfaction → service quality → customer satisfaction → profits.

Q18: What are the three types of service marketing?

A:

1. Internal – between company and employees

2. Interactive – between employees and customers

3. External – between company and customers

Q19: How can companies improve service quality and productivity?

A:

• Train staff

• Standardize delivery

• Use technology

• Manage demand and capacity

Q20: What is brand equity?

A: The added value a brand gives to a product based on customer perception and loyalty.

Q21: What are the major brand strategy decisions?

A:

1. Brand positioning

2. Brand name selection

3. Brand sponsorship

4. Brand development

Q22: What are the four ways to position a brand?

A:

• By attributes

• By benefits

• By values and beliefs (deepest level)

• Emotionally (e.g., Apple, Disney)

Q23: What are the four types of brand sponsorship?

A:

1. Manufacturer brand (e.g., Nike)

2. Private brand (e.g., Kirkland at Costco)

3. Licensed brand (e.g., Marvel merch)

4. Co-branding (e.g., Nike + Apple)

Q24: What are the four brand development strategies?

A:

1. Line extension – new versions of same product

2. Brand extension – same brand in new category

3. Multibrands – multiple brands in same category

4. New brands – new name for new product line

Q25: How do companies manage their brands?

A:

• Build through customer experience

• Train employees (internal branding)

• Audit brand performance

• Align brand strategy with long-term goals