BU352 - Intro To Marketing Final Exam
Questions And Complete Answers
Product - answer Anything that is of value to a consumer and can be offered through a
marketing exchange.
Innovation - answer The process by which ideas are transformed into new products and
services that will help firms grow.
Pioneers - answer New product introductions that establish a completely new market or
radically change both the rules of competition and consumer preferences in a market;
also known as breakthroughs.
First movers - answer Product pioneers that are the first to create a market or product
category, making them readily recognizable to consumers and thus establishing a
commanding and early market share lead.
Diffusion of innovation - answer The process by which the use of an innovation, whether
a product or service, spreads throughout a market group over time and over various
categories of adopters.
Lead users - answer Modify existing products according to their own specific needs.
Reverse engineering - answer Involves taking apart a competitors product, analyzing it,
and creating an improved product that does not infringe on the competitor's patents, if
any exist.
Alpha testing - answer An attempt by the firm to determine whether a product will
perform according to its design and whether it satisfies the need for which it was
intended; occurs in the firm's R&D department.
Beta testing - answer Having potential customers examine a product prototype in a
real-use setting to determine its functionality, performance, potential problems, and
other issues specific to its use.
Core customer value - answer The basic problem solving benefits that consumers are
seeking.
Associated services - answer The non-physical attributes of the product, including
product warranties, financing, product support and after-sale service.
Product mix - answer the complete set of all products offered by a firm.
Product lines - answer Groups of associated items, such as those that consumers use
together or think of as parts of a group of similar products.
, Product category - answer An assortment of items that the customer sees as
reasonable substitutes for one another.
Brand dilution - answer Occurs when a brand extension adversely affects consumer
perceptions about the attributes the core brand is believed to hold.
Service - answer Any intangible offering that cannot be physically possessed.
customer service - answer Specifically refers to human or mechanical activities firms
undertake to help satisfy their customers needs and wants.
Service gap - answer Results when a service fails to meet the expectations that
customers have about how it should be delivered.
Knowledge gap - answer Reflects the difference between customers expectations and
the firms perception of those expectations.
Standards gap - answer Pertains to the difference between the firm's perceptions of
customers expectations and the service standards it sets.
Delivery gap - answer The difference between the firm's service standards and the
actual service it provides to customers.
Communication gap - answer Refers to the difference between the actual service
provided to customers and the service that the firms promotion program promises.
Service quality - answer Customers perceptions of how well a service meets or exceeds
their expectations.
voice of customer program - answer An ongoing marketing research system that
collects customer insights and intelligence to influence and drive business decisions.
Zone of tolerance - answer The area between customers expectations regarding their
desired service and the minimum level of acceptance service - that is, the difference
between what the customer really wants and what he or she will accept before going
elsewhere.
Demand curve - answer Shows how many units of a product or service consumers will
demand during a specific period at different prices.
Price elasticity of demand - answer Measures how changes in a price affect the quantity
of the product demanded; specifically, the ratio of the percentage change in quantity
demanded to the percentage change in price.
Questions And Complete Answers
Product - answer Anything that is of value to a consumer and can be offered through a
marketing exchange.
Innovation - answer The process by which ideas are transformed into new products and
services that will help firms grow.
Pioneers - answer New product introductions that establish a completely new market or
radically change both the rules of competition and consumer preferences in a market;
also known as breakthroughs.
First movers - answer Product pioneers that are the first to create a market or product
category, making them readily recognizable to consumers and thus establishing a
commanding and early market share lead.
Diffusion of innovation - answer The process by which the use of an innovation, whether
a product or service, spreads throughout a market group over time and over various
categories of adopters.
Lead users - answer Modify existing products according to their own specific needs.
Reverse engineering - answer Involves taking apart a competitors product, analyzing it,
and creating an improved product that does not infringe on the competitor's patents, if
any exist.
Alpha testing - answer An attempt by the firm to determine whether a product will
perform according to its design and whether it satisfies the need for which it was
intended; occurs in the firm's R&D department.
Beta testing - answer Having potential customers examine a product prototype in a
real-use setting to determine its functionality, performance, potential problems, and
other issues specific to its use.
Core customer value - answer The basic problem solving benefits that consumers are
seeking.
Associated services - answer The non-physical attributes of the product, including
product warranties, financing, product support and after-sale service.
Product mix - answer the complete set of all products offered by a firm.
Product lines - answer Groups of associated items, such as those that consumers use
together or think of as parts of a group of similar products.
, Product category - answer An assortment of items that the customer sees as
reasonable substitutes for one another.
Brand dilution - answer Occurs when a brand extension adversely affects consumer
perceptions about the attributes the core brand is believed to hold.
Service - answer Any intangible offering that cannot be physically possessed.
customer service - answer Specifically refers to human or mechanical activities firms
undertake to help satisfy their customers needs and wants.
Service gap - answer Results when a service fails to meet the expectations that
customers have about how it should be delivered.
Knowledge gap - answer Reflects the difference between customers expectations and
the firms perception of those expectations.
Standards gap - answer Pertains to the difference between the firm's perceptions of
customers expectations and the service standards it sets.
Delivery gap - answer The difference between the firm's service standards and the
actual service it provides to customers.
Communication gap - answer Refers to the difference between the actual service
provided to customers and the service that the firms promotion program promises.
Service quality - answer Customers perceptions of how well a service meets or exceeds
their expectations.
voice of customer program - answer An ongoing marketing research system that
collects customer insights and intelligence to influence and drive business decisions.
Zone of tolerance - answer The area between customers expectations regarding their
desired service and the minimum level of acceptance service - that is, the difference
between what the customer really wants and what he or she will accept before going
elsewhere.
Demand curve - answer Shows how many units of a product or service consumers will
demand during a specific period at different prices.
Price elasticity of demand - answer Measures how changes in a price affect the quantity
of the product demanded; specifically, the ratio of the percentage change in quantity
demanded to the percentage change in price.
