Term
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Definition
| Everything, both favorable and unfavorable, that a person receives in an exchange. |
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Term
| What are consumer products? |
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Definition
| Product bought to satisfy an individual's personal wants (to succeed long-term, the product must satisfy customer needs). |
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Term
| A relatively inexpensive item that merits little shopping efforts is ________? |
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Definition
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Term
| What type of product require comparison shopping? |
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Definition
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Term
| A particular item that consumers search extensively for and are reluctant to accept substitutes. |
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Definition
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Term
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Definition
| A group of closely related product items. |
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Term
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Definition
| All products that an organization sells. |
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Term
| What are the advantages to having a Product Line? |
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Definition
Advertising Economies
Package Uniformity
Standardized Components
Efficient Sales and Distribution
Equivalent Quality
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Term
| Define Product Mix Width. |
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Definition
| The number of product lines an organization offers. |
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Term
| Define Product Line Depth. |
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Definition
| The number of product items in a product line. |
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Term
| Why do companies increase the product line depth? |
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Definition
Attracts buyers with different preferences
Increases sales/profits by further market segmentation
Capitalizes on economies of scales
Evens out season sales patterns |
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Term
| What are three ways companies make adjustments to product items, lines, and mixes? |
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Definition
Product Modification
Product Repositioning
Product line extension or contraction |
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Term
| What are three ways to make product modifications? |
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Definition
Quality Modification: Change in dependability and durability
Functional Modification: Change in versatility, effectiveness, convenience or safety
Style Modification: Aesthetic |
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Term
| Define Planned Obsolescence. |
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Definition
| The practice of modifying products so those that have already been sold become obsolete before they actually need replacement. |
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Term
| Why reposition established brands? |
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Definition
Changing demographics
Declining sales
Changes in social environment
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Term
| Define Product Line Extension. |
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Definition
| Adding additional products to an existing product line in order to compete more broadly in the industry. |
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Term
| What are symtoms of product line overextension? |
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Definition
Some products have low sales or cannibalize sales of other items
Resources are disproportionately allocated to slow-moving products
Items have become obsolete because of new product entries
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Term
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Definition
| A name, term, symbol, design, or combination thereof that identifies a seller's product and differentiates them from competitor's products. |
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Term
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Definition
| A 3 to 7 word catchy phrase to identify and support a brand. |
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Term
| True or False: It is always cheaper to keep a customer than to recruit a new one. |
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Definition
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Term
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Definition
| A no-frills, no brand name, low-cost product that is simply identified by its product category. |
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Term
| What are the advantages of Manufacturers' Brands? |
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Definition
Heavy consumer ads by manufacturers
Attract new customers
Enhance dealer's prestige
Rapid delivery, carry less inventory
If dealer carries poor quality brand, customer may simply switch brands and remain loyal to dealer |
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