Elements of Product Planning for Goods and Services

These flashcards cover key concepts related to product planning for goods and services, including definitions of important terms and distinctions between various product categories.

Product

The need-satisfying offering of a firm, encompassing the entire customer experience.

Product Quality

The ability to satisfy a customer’s needs or requirements.

Tangible vs Intangible

Tangible refers to goods that can be touched, while intangible refers to services which cannot be physically touched.

Branding

The use of a name, term, symbol, or design to identify and distinguish a product.

Economies of Scale

Cost advantages that a business obtains due to the scale of operation, with cost per unit of output generally decreasing with increasing scale.

Brand Familiarity

The consumers' ability to recognize and recall a brand.

Customer Experience

The overall impression of a customer when interacting with a brand, product, or service.

Fair Packaging and Labeling Act

A law that allows consumers to see truthful information about the product on its packaging.

Consumer Products

Products that are meant for personal consumption.

Business Products

Products that are used for business purposes rather than personal consumption.

Packaging

The technology of enclosing or protecting products for distribution, storage, sale, and use.

Impulse Products

Products that consumers do not plan to purchase in advance, but buy on a whim.

Homogeneous Products

Products that are viewed as identical to each other by consumers, often competing on price.

Heterogeneous Products

Products that are considered different from each other by consumers, leading to comparison based on quality, features, and price.

Brand Recognition

The ability of consumers to recognize a brand based on its distinct features such as logo or branding.

Brand Insistence

When consumers refuse to accept alternatives and will buy only a specific brand.

Brand Rejection

When consumers will not buy a brand and actively avoid it.

Brand Equity

The added value a brand name gives to a product beyond the functional benefits of that product.

Traditional vs Augmented Products

A traditional product is the basic version, while an augmented product includes additional features that add value for consumers.

Trademark

A symbol, word, or words legally registered or established by use as representing a company or product.