Chp. 11: Product, Branding, and Packaging Decisions
This term refers to the complete set of all product lines and individual products and services offered by a firm.
What is the product mix?
According to the diffusion of innovation curve, this group makes up the first 2.5% of the market and loves to be the first to try new products.
Who are the innovators?
During this stage of the product life cycle, firms focus heavily on promotion to inform consumers and build awareness.
What is the introduction stage?
This is the characteristic of services that means they cannot be physically touched, tasted, or seen like a pure product.
What is intangibility?
This concept represents the area between what a customer hopes for (desired service) and what they will minimally accept (acceptable service).
What is the zone of tolerance?
When a consumer purchases a product based on minimal comparison, such as a box of cereal or a toothpaste, it is classified as this type of consumer product.
What is a convenience product?
Name a reason why firms pursue new product development.
What is managing risk through diversity, addressing market saturation, changing customer needs, fashion cycles, and improving business relationships.
Competitors begin to enter the market and sales start rising rapidly during this stage of the product life cycle.
What is the growth stage?
Since services are often produced and consumed at the same time, they are said to be this, making the interaction with the service provider important.
What is inseparable (or inseparability)?
This service gap occurs when a firm understands customer expectations but lacks clear, specific guidelines or training to ensure a quality service delivery.
What is the standards gap?
This element of a product includes non-physical features like warranties, financing, product support, and after-sale service.
What is the augmented product (or associated product)?
This is the first step in the new product development process, which involves searching for ideas for new products.
What is idea generation?
This is the stage where sales typically peak and then begin to level off, often requiring firms to defend their market share against intense competition.
What is the maturity stage?
This "extra P" in service marketing refers to the visible, non-human elements of the service, like the appearance of the building, website, or uniforms.
What is presentation?
This service gap arises when a firm's promotional materials or advertising promises a higher level of service than it can actually deliver.
What is the communications gap?
Coca-Cola using the same brand name for Diet Coke, Cherry Coke, and Vanilla Coke is an example of increasing this dimension of its product mix.
What is product line depth?
This is the term used to describe when a firm evaluates a product idea by presenting a brief written description to potential customers and gauging their reactions.
What is concept testing?
Even if sales remain steady during the maturity stage, this typically begins to decline due to increased competition and the need to reduce prices or increase promotion.
What is profit?
The fact that a haircut performed by one stylist may differ from a haircut performed by another, even at the same salon, illustrates this service characteristic.
What is heterogeneity (or variability)?
This dimension of service quality, part of the RATER model, relates to the ability to perform the service right the first time and deliver on the promised service.
What is reliability?
This type of brand strategy involves using the corporate name across all products, such as the Kellogg's name on cereals, waffles, and crackers.
What is a family brand strategy?
This phase of the new product development process involves a limited, full-scale launch of the product in a small geographic area to determine potential success.
What is test marketing?
A firm would most likely use a strategy of harvesting the product or eventually discontinuing it during this stage.
What is the decline stage?
This characteristic of services means that the service capacity cannot be stored/used later, such as an empty seat on a flight or a missed appointment slot.
What is perishability?
This gap in service quality occurs when a firm fails to understand exactly what customers expect, leading to the wrong service being developed or offered.
What is the knowledge gap?