MBA 645 Quiz 4 Study Guide 2023 Graded A

product - is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. 5 Product Levels of Customer Value Hierarchy - core benefit basic product expected product augmented product potential product core benefit - the service or benefit the customer is really buying basic product - the simplest form of a product expected product - everything that represents the customer's minimal expectations augmented product - the actual product plus other supporting features such as a warranty, credit, delivery, installation, and repair service after the sale potential product - refers to what may remain to be done, that is, what is possible Durability and Tangibility - nondurable goods tangible and normally consumed in a one or a few uses Durable goods are tangible and survive many uses. Services are intangible, inseparable, variable, and perishable products (such as haircuts) that normally require more quality control, supplier credibility, and adaptability. consumer-goods classification - Classified on the basis of shopping habits convenience goods - that are purchased frequently, immediately, and with minimal effort shopping goods - (such as furniture) that consumers compare on such bases as suitability, quality, price, and style; specialty goods - (such as cars) with unique characteristics or brand identification for which enough buyers are willing to make a special purchasing effort unsought goods - (such as smoke detectors) that the consumer does not know about or normally think of buying. Industrial-Goods Classification - materials and parts, capital items, supplies and business services capital items - are long-lasting goods that facilitate developing or managing the finished product, including installations (factories) and equipment (tools). Supplies and business services are short-term goods and services that facilitate developing or managing the finished product. Means of Differentiation - form, features, performance quality, conformance quality, durability, reliability, repairability, style, and customization Form - refers to the size, shape, or physical structure of a product. For example, aspirin can be differentiated by dosage size, shape, color, coating, or action time. Features - Most products can be offered with varying features that supplement their basic function. A company can identify and select new features by surveying recent buyers and then calculating customer value versus company cost for each potential feature. Performance Quality - is the level at which the product's primary characteristics operate. Firms should design a performance level appropriate to the target market and competition (not necessarily the highest level possible) and manage performance quality through time. Conformance quality - the degree to which all produced units are identical and meet promised specifications. A product with low conformance quality will disappoint some buyers. Durability - a measure of the product's expected operating life under natural or stressful conditions, is a valued attribute for durable goods. The extra price for durability must not be excessive, and the product must not be subject to rapid technological obsolescence. Reliability - a measure of the probability that a product will not malfunction or fail within a specified period. Repairability - measures the ease of fixing a product when it malfunctions or fails. Ideal repairability would exist if users could fix the product themselves with little cost in money or time. style - describes the product's look and feel to the buyer and creates distinctiveness that is hard to copy, although strong style does not always mean high performance. Style plays a key role in the marketing of many brands, such as Apple's tablets.