MKT 291 study guide

MKT 291 study guide - Chapter 10 Product- Good, service, or...

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Chapter 10 Product - Good, service, or idea consisting of tangible and intangible features that satisfies consumers and is received in exchange for money or something else of value Good - Has tangible attributes that a consumer’s five senses can perceive (Iphone) Nondurable good - Item consumed in one or few uses (Food, Fuel) Durable good - Item that lasts for many uses (Appliances, Cars) Services - Intangible activities or benefits that an organization provides to consumers in exchange for money Product Item - Specific product that has a unique brand, size or price Product Line - Group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales outlets, or prices Product Mix - All the product lines offered by a company Classifying Products Uniqueness of Services- Four unique elements distinguishes services from goods. 1. Intangibility- Services can’t be touched or seen before the purchase decision. Services tend to be a performance rather than an object, which makes them much more difficult for consumers to evaluate. 2. Inconsistency- Services depend on the people who provide them. As a result, their quality varies with each person’s capabilities and day-to- day job performance. Inconsistency is more of a problem in services than it is with tangible goods. Organizations attempt to reduce inconsistency through standardization and training 3. Inseparability- Inseparability means that the consumer cannot distinguish the service provider (hair stylist) from the service itself (hair salon) 4. Inventory - The need to have service production capability when there is service demand Idle Production Capacity - When the supply of the service exceeds the demand of it Consumer Goods 1. Convenience Products- Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort 2. Shopping Products - Items for which the consumer compares several alternatives on criteria such as price, quality, or style 3. Specialty Products - Items that the consumer makes a special effort to search out and buy 4. Unsought Products - Items that the consumer does not know about or knows about but does not initially want
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Business Goods 1. Support Products- Items used to assist in producing other goods and services. These include Installations, Accessory equipment, Supplies, and Industrial services 2. Components - Items that become part of the final product. This includes raw material such as grain or lumber, as well as assemblies or parts, such as Ford car engine or car door hinges 3. Derived Demand - Sales of business products frequently result from the sale of consumer products Classifying Services 1. Delivery by People-based -professional services include those offered by advertising agencies or medical doctors. Sears utilizes skilled labor to offer appliance repair services. The quality of all these people-based services can vary significantly depending on the abilities of the person delivering the
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MKT 291 study guide - Chapter 10 Product- Good, service, or...

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