BMGT 350 Exam 2 Chapters 7-14
Questions with Correct Answers
Product - Answer-Anything that can be offered to a market for attention, acquisition, use
or consumption that might satisfy a want or need
Service - Answer-an activity, benefit, or satisfaction offered for sale that is essentially
intangible and dose not result in the ownership of anything
Consumer Product - Answer-a product bought by final consumers for personal
consumption
convenience product - Answer-a consumer product that customers usually buy
frequently, immediately, and with minimal comparison and buying effort
usually low price, widespread distribution, and mass promotion by the producer
shopping product - Answer-a consumer product that the customer, in the process of
selecting and purchasing, usually compares on such attributes as suitability, quality,
price, and style
usually a higher price, selective distribution in fewer outlets, and advertising and
personal selling by both the producer and resellers
speciality product - Answer-a consumer product with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort
usually a high price, exclusive distribution in only one or a few outlets per market area,
and ore carefully targeted promotion by both the producer and reseller
unsought product - Answer-a consumer product that the consumer either does not know
about or knows about but does not normally consider buying
usually aggressive advertising and personal selling by the producer and resellers with
little product awareness of knowledge
industrial product - Answer-a product bought by individuals and organizations for further
processing or for use in conducting a business
social marketing - Answer-using traditional business marketing concepts and tools to
create behaviors that will crate individual and societal well-being
product quality - Answer-the characteristics of a product or service that bear on its
ability to satisfy stated or implied customer needs
,brand - Answer-a name, term, sign, symbol, or design or a combination of these that
identifies the products or services of one seller or group of sellers and differentiates
them from those of competitors
packaging - Answer-the activities of designing and producing the container or wrapper
for a product
product line - Answer-a group of products that are closely related because they function
in a similar manner, are sold to the same customer groups, are marketed through the
same types of outlets, or fall within given price ranges
Product Mix/Product portfolio - Answer-the set of all product lines and items that a
particular seller offers for sale
service intangibility - Answer-services cannot be seen, tasted, felt, heard, or smelled
before they are bought
service inseparability - Answer-services are produced and consumed at the same time
and cannot be separated from their providers
service variability - Answer-the quality of services may vary greatly depending on who
provides them and when, and how they are provided
service perishability - Answer-services cannot be stored for later sale or use
service profit chain - Answer-the chain that inks service firm profits with employee and
customer satisfaction
internal marketing - Answer-orienting and motivating customer-contact employees and
supporting service employees to work as a team to provide customer satisfaction
interactive marketing - Answer-training service employees in the fine art of interacting
with customers to satisfy their needs
brand equity - Answer-the differential effect that knowing the brand name has on
customer response to the product and its marketing
brand value - Answer-the total financial value of a brand
store brand (private brand) - Answer-a brand created and owned by a reseller of a
product or service
co-branding - Answer-the practice of using the established brand names of two different
companies on the same product
, line extension - Answer-extending an existing brand name to new forms, colors, sizes,
ingredients, or flavors of an existing product category
brand extension - Answer-extending an existing brand name to new product categories
new product development - Answer-the development of original products, product
improvements, product modifications, and new brands through the firm's own product
development efforts
idea generation - Answer-the systematic search for new product ideas
New Product development process - Answer-idea generation
idea screening
conception development and testing
marketing strategy development
business analysis
product development
test marketing
commercialization
crowdsourcing - Answer-inviting broad communities of people- customers, employees,
independent scientists and researchers, and even the pubic at large- into the new
product innovation process
idea screening - Answer-screening new product ideas to spot some good ones and drop
poor ones as soon as possible
product concept - Answer-a detailed version of the new product idea stated in
meaningful consumer terms
concept testing - Answer-testing new product concepts with a group of target
consumers to find out if the concepts have strong consumer appeal
marketing strategy development - Answer-designing an initial marketing strategy for a
new product based on the product concept
describes target market, the planned value proposition, and the sales, market-share,
and profit goals for the first few years
business analysis - Answer-a review of the sales, costs, and profit projections for a new
product to find out whether these factors satisfy the company's objectives
product development - Answer-developing the product concept into a physical product
to ensure that the product idea can be turned into a workable market offering
test marketing - Answer-the stage of new product development at which the product and
its proposed marketing program are tested in realistic market settings
