Chapter 7 - Products & Brands

What is a non-durable good?

An item consumed once or a limited number of times, such as food or fuel.

What is a durable good?

An item that lasts over an extended number of uses.

What is a service?

An intangible activity, benefit, or satisfaction, such as banking, online searching, or visiting a doctor.

What are virtual services?

Services that exist only online and have no person-to-person interaction.

What is the service continuum?

A range of offerings from tangible, goods-dominated products to intangible, service-dominated offerings.

How can tangible goods be augmented with services?

Through warranties, websites, online support, and other intangible benefits.

What is an example of a balanced offering in the service continuum?

A fast-food restaurant, combining tangible food with intangible service.

What are the four unique characteristics of services?

Intangibility, Inconsistency, Inseparability, and Inventory.

What is intangibility?

Services generally cannot be held, touched, or seen before purchase.

What is inconsistency in services?

Service quality may vary because it depends on the people delivering the service.

What is inseparability in services?

Consumers cannot easily separate the service from the person providing it.

What is inventory in services?

Services cannot be stored for later sale or use in the same way as physical goods.

What is idle production capacity?

When the available supply of a service exceeds customer demand.

Why is managing service inventory difficult?

Unused service capacity cannot generally be stored for future demand.

What is the total product concept?

The view that a product consists of three layers: core product, actual product, and augmented product.

What is a core product?

The fundamental benefit a consumer receives from having the product.

What is an actual product?

The physical good or service a customer purchases.

What is an augmented product?

Additional features and benefits that accompany the actual product.

What is the core product in the textbook's bicycle example?

Transportation and leisure activity.

What is the actual product in the bicycle example?

The branded bicycle, including its frame, speeds, wheels, and padded seat.

What is the augmented product in the bicycle example?

Warranty, repair facilities, online FAQs, and service videos.

Why are packaging and labelling important?

They serve functional and communication purposes and help establish the brand image.

What serves as packaging and labelling for an online product?

The website.

What is a product line?

A group of closely related products that satisfy similar needs and target the same market.

What is a product mix?

All the product lines marketed by a company.

What is product mix width?

The number of different product lines offered by a company.

What is product mix length?

The total number of products or brands in a product line, as defined in the notes.

What is product line depth?

The assortment of different versions of each product sold within a product line.

What company is used as the product mix example in the textbook?

Procter & Gamble.

What four product lines are shown in the Procter & Gamble example?

Beauty; Baby, Feminine, and Family Care; Fabric and Home Care; Health and Grooming.

What is a consumer product?

A product purchased by the ultimate consumer for personal use.

What is a business product?

A product purchased to operate a business or to become part of another product or service.

What are the four categories of consumer products?

Convenience, Shopping, Specialty, and Unsought products.

What are convenience products?

Inexpensive, frequently purchased products requiring minimal risk and shopping effort.

What are examples of convenience products?

Newspapers, chocolate bars, soft drinks, and bread.

What are shopping products?

Products requiring comparison between brands and an investment of shopping time.

What are examples of shopping products?

Cameras, televisions, backpacks, and clothing.

What are specialty products?

Products for which buyers seek a specific brand or item and invest considerable time and effort.

What are examples of specialty products?

Wedding dresses and luxury watches such as Rolex.

What are unsought products?

Products unknown to consumers or of little interest until a need arises.

What is an example of an unsought product?

Life insurance or disability insurance.

What is derived demand?

Demand for business products that results from demand for consumer products.

What is an example of derived demand?

When more people buy Tesla cars, Tesla needs more paint for production.

What are production goods and services?

Items used in manufacturing that become part of the final product.

What are support goods and services?

Items that help a business produce other goods and services.

What are the four types of support goods and services?

Installations, accessories, supplies, and services.

What is a brand?

A name, phrase, symbol, or design used to distinguish a company's product from competitors.

What is brand equity?

The value created by consumers' favourable exposure, interactions, associations, and experiences with a brand over time.

What is a global brand?

A brand sold and widely recognized across multiple international markets.

What is brand loyalty?

A favourable attitude toward and consistent purchasing of a single brand over time.

What is brand personality?

A set of human characteristics associated with a brand.

What factors keep customers loyal to brands according to the textbook chart?

Product quality, value for money, product consistency, customer service, easy shopping experience, product selection, and pricing.

What are five characteristics of a good brand name?

Suggests product benefits; memorable, distinctive, and positive; fits the brand image; legally protectable; and simple.

What is an individual brand?

A brand name used by a company solely for a specific product category.

What is a family brand?

A brand name used across several different product categories.

What is a brand extension?

Introducing new goods or services under an existing flagship brand name.

What is a sub-brand?

A brand combining the parent brand name with its own name and identity to gain recognition while remaining differentiated.

What is a patent?

Legal protection for new technologies, unique processes, or formulations.

What is copyright?

Legal protection for original written works, sound recordings, and other forms of creative communication.

What is a trademark?

Legal protection for brand names, images, slogans, and designs.

What are the three types of brands?

Manufacturer's brands, private-label brands, and generic brands.

What is a manufacturer's brand?

A brand owned and produced by the manufacturer.

What is a private-label brand?

A retailer-owned brand manufactured by suppliers and sold under the retailer's store-brand name.

What is a generic brand?

An unbranded product offered as an inexpensive alternative to manufacturer and private-label brands.