BMGT 350 EXAM 2 CHAPTERS 7-14
QUESTIONS AND ANSWERS 100%
CORRECT
Product - ANSWER-Anything that can be offered to a market for attention, acquisition,
use or consumption that might satisfy a want or need
Service - ANSWER-an activity, benefit, or satisfaction offered for sale that is essentially
intangible and dose not result in the ownership of anything
Consumer Product - ANSWER-a product bought by final consumers for personal
consumption
convenience product - ANSWER-a consumer product that customers usually buy
frequently, immediately, and with minimal comparison and buying effort
usually low price, widespread distribution, and mass promotion by the producer
shopping product - ANSWER-a consumer product that the customer, in the process of
selecting and purchasing, usually compares on such attributes as suitability, quality,
price, and style
usually a higher price, selective distribution in fewer outlets, and advertising and
personal selling by both the producer and resellers
speciality product - ANSWER-a consumer product with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort
usually a high price, exclusive distribution in only one or a few outlets per market area,
and ore carefully targeted promotion by both the producer and reseller
unsought product - ANSWER-a consumer product that the consumer either does not
know about or knows about but does not normally consider buying
usually aggressive advertising and personal selling by the producer and resellers with
little product awareness of knowledge
industrial product - ANSWER-a product bought by individuals and organizations for
further processing or for use in conducting a business
social marketing - ANSWER-using traditional business marketing concepts and tools to
create behaviors that will crate individual and societal well-being
product quality - ANSWER-the characteristics of a product or service that bear on its
ability to satisfy stated or implied customer needs
,brand - ANSWER-a name, term, sign, symbol, or design or a combination of these that
identifies the products or services of one seller or group of sellers and differentiates
them from those of competitors
packaging - ANSWER-the activities of designing and producing the container or
wrapper for a product
product line - ANSWER-a group of products that are closely related because they
function in a similar manner, are sold to the same customer groups, are marketed
through the same types of outlets, or fall within given price ranges
Product Mix/Product portfolio - ANSWER-the set of all product lines and items that a
particular seller offers for sale
service intangibility - ANSWER-services cannot be seen, tasted, felt, heard, or smelled
before they are bought
service inseparability - ANSWER-services are produced and consumed at the same
time and cannot be separated from their providers
service variability - ANSWER-the quality of services may vary greatly depending on who
provides them and when, and how they are provided
service perishability - ANSWER-services cannot be stored for later sale or use
service profit chain - ANSWER-the chain that inks service firm profits with employee
and customer satisfaction
internal marketing - ANSWER-orienting and motivating customer-contact employees
and supporting service employees to work as a team to provide customer satisfaction
interactive marketing - ANSWER-training service employees in the fine art of interacting
with customers to satisfy their needs
brand equity - ANSWER-the differential effect that knowing the brand name has on
customer response to the product and its marketing
total costs - ANSWER-the sum of the fixed and variable costs for any given level of
production
cost-plus pricing (markup pricing) - ANSWER-adding a standard markup to the cost of
the product
break-even pricing (target return pricing) - ANSWER-setting price to break even on the
costs of making and marketing a product or setting price to make a target return
, competition-based pricing - ANSWER-setting prices based on competitors' strategies,
prices, costs, and market offerings
target costing - ANSWER-pricing that starts with an ideal selling price, then targets
costs that will ensure that the price is met
demand curve - ANSWER-a curve that shows the number of units the market will buy in
a given time period at different prices that might be charged
price elasticity - ANSWER-a measure of the sensitivity of demand to changes in price
market-skimming pricing (price skimming) - ANSWER-setting a high price for a new
product to skim maximum revenues layer by layer from the segments willing to pay the
higher price; the company makes fewer but more profitable sales
brand value - ANSWER-the total financial value of a brand
store brand (private brand) - ANSWER-a brand created and owned by a reseller of a
product or service
co-branding - ANSWER-the practice of using the established brand names of two
different companies on the same product
line extension - ANSWER-extending an existing brand name to new forms, colors,
sizes, ingredients, or flavors of an existing product category
brand extension - ANSWER-extending an existing brand name to new product
categories
new product development - ANSWER-the development of original products, product
improvements, product modifications, and new brands through the firm's own product
development efforts
idea generation - ANSWER-the systematic search for new product ideas
New Product development process - ANSWER-idea generation
idea screening
conception development and testing
marketing strategy development
business analysis
product development
test marketing
commercialization
QUESTIONS AND ANSWERS 100%
CORRECT
Product - ANSWER-Anything that can be offered to a market for attention, acquisition,
use or consumption that might satisfy a want or need
Service - ANSWER-an activity, benefit, or satisfaction offered for sale that is essentially
intangible and dose not result in the ownership of anything
Consumer Product - ANSWER-a product bought by final consumers for personal
consumption
convenience product - ANSWER-a consumer product that customers usually buy
frequently, immediately, and with minimal comparison and buying effort
usually low price, widespread distribution, and mass promotion by the producer
shopping product - ANSWER-a consumer product that the customer, in the process of
selecting and purchasing, usually compares on such attributes as suitability, quality,
price, and style
usually a higher price, selective distribution in fewer outlets, and advertising and
personal selling by both the producer and resellers
speciality product - ANSWER-a consumer product with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort
usually a high price, exclusive distribution in only one or a few outlets per market area,
and ore carefully targeted promotion by both the producer and reseller
unsought product - ANSWER-a consumer product that the consumer either does not
know about or knows about but does not normally consider buying
usually aggressive advertising and personal selling by the producer and resellers with
little product awareness of knowledge
industrial product - ANSWER-a product bought by individuals and organizations for
further processing or for use in conducting a business
social marketing - ANSWER-using traditional business marketing concepts and tools to
create behaviors that will crate individual and societal well-being
product quality - ANSWER-the characteristics of a product or service that bear on its
ability to satisfy stated or implied customer needs
,brand - ANSWER-a name, term, sign, symbol, or design or a combination of these that
identifies the products or services of one seller or group of sellers and differentiates
them from those of competitors
packaging - ANSWER-the activities of designing and producing the container or
wrapper for a product
product line - ANSWER-a group of products that are closely related because they
function in a similar manner, are sold to the same customer groups, are marketed
through the same types of outlets, or fall within given price ranges
Product Mix/Product portfolio - ANSWER-the set of all product lines and items that a
particular seller offers for sale
service intangibility - ANSWER-services cannot be seen, tasted, felt, heard, or smelled
before they are bought
service inseparability - ANSWER-services are produced and consumed at the same
time and cannot be separated from their providers
service variability - ANSWER-the quality of services may vary greatly depending on who
provides them and when, and how they are provided
service perishability - ANSWER-services cannot be stored for later sale or use
service profit chain - ANSWER-the chain that inks service firm profits with employee
and customer satisfaction
internal marketing - ANSWER-orienting and motivating customer-contact employees
and supporting service employees to work as a team to provide customer satisfaction
interactive marketing - ANSWER-training service employees in the fine art of interacting
with customers to satisfy their needs
brand equity - ANSWER-the differential effect that knowing the brand name has on
customer response to the product and its marketing
total costs - ANSWER-the sum of the fixed and variable costs for any given level of
production
cost-plus pricing (markup pricing) - ANSWER-adding a standard markup to the cost of
the product
break-even pricing (target return pricing) - ANSWER-setting price to break even on the
costs of making and marketing a product or setting price to make a target return
, competition-based pricing - ANSWER-setting prices based on competitors' strategies,
prices, costs, and market offerings
target costing - ANSWER-pricing that starts with an ideal selling price, then targets
costs that will ensure that the price is met
demand curve - ANSWER-a curve that shows the number of units the market will buy in
a given time period at different prices that might be charged
price elasticity - ANSWER-a measure of the sensitivity of demand to changes in price
market-skimming pricing (price skimming) - ANSWER-setting a high price for a new
product to skim maximum revenues layer by layer from the segments willing to pay the
higher price; the company makes fewer but more profitable sales
brand value - ANSWER-the total financial value of a brand
store brand (private brand) - ANSWER-a brand created and owned by a reseller of a
product or service
co-branding - ANSWER-the practice of using the established brand names of two
different companies on the same product
line extension - ANSWER-extending an existing brand name to new forms, colors,
sizes, ingredients, or flavors of an existing product category
brand extension - ANSWER-extending an existing brand name to new product
categories
new product development - ANSWER-the development of original products, product
improvements, product modifications, and new brands through the firm's own product
development efforts
idea generation - ANSWER-the systematic search for new product ideas
New Product development process - ANSWER-idea generation
idea screening
conception development and testing
marketing strategy development
business analysis
product development
test marketing
commercialization
