MAR3023 EXAM #3 (BRADY - FSU) QUESTIONS
What is a Product? - Answers :Good, service, or idea (or combination)
What is a Good? - Answers :Tangible, physical entity
What is a Service? - Answers :Intangible, result of application of human and mechanical
efforts to people or objects
What is an Idea? - Answers :Concept, philosophy, image, or issue
What are the 2 types of Products? - Answers :1. Consumer Products
2. Business Products
What are Consumer Products? - Answers :Purchased to satisfy personal and family
needs, and are classified according to how buyers generally behave when purchasing
them
What are some Sub-Types of Consumer Products? - Answers :Convenience Proudcts-
inexpensive and frequent
Shopping Products- planned efforts to purchase
Specialty Products- have unique characteristics
Unsought Products- tow truck, emergency room, etc
What are Business Products? - Answers :Purchased to use for operations to resell, or to
use in manufacturing of another product (this is MOST COMMON product type) (ex-
installations, raw materials, business services, MRO supplies)
What are Core Products? - Answers :Physical or intangible good or service that the
customer receives (ex- acetaminophen, cola, beer)
What is a Branded Product? - Answers :Core Product plus the characteristics that allow
the consumer to differentiate from similar products (Tylenol, Coca-Cola, Blue Moon)
What is a Functional Modification? - Answers :Changes impact versatility, effectiveness,
convenience- requires redesign of product (Ex- New Heinz ketchup packets)
What percentage of new products fail? - Answers :80%
What are the two goals and perspectives for NPD? - Answers :1. The firm's perspective
2. The customer's perspective
What are the 7 steps of developing a new product? - Answers :1. Idea generation
2. Idea screening (think Shark Tank)
3. Concept testing (focus groups)
4. Business analysis
, 5. Development of physical product
6. Beta and Market testing (test markets)
7. Product launch
Product Adoption Process (buyer's perspective) - Answers :1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
What are the 5 types of product adopters? - Answers :-Innovators
-Early adopters
-Early majority (companies want them)
-Late majority (companies want them)
-Laggards
Why is Studying Service Marketing Important? - Answers :Services are 75% of US GDP
(this is a global trend)
What are the factors leading to service growth? - Answers :-Aging populations
-Increased leisure time
-High discretionary income
-Changing sociocultural values
What does a service include? - Answers :EVERY INTERACTION between any
customer and anyone representing the company (there can never be a product w/o
service)
What are the 4 Characteristics of a Service? - Answers :1. Intangibility- you buy a series
before seeing/receiving the service, which differs from goods
2. Heterogeneity- services vary EVERY TIME, depending on location, employee,
customer variance (unlike products)
3. Inseparability- Production and consumption happen simultaneously
4. Perishability- Service cannot be saved, and its unused capacity cannot be reserved
nor inventoried (difficult for supply and demand)
Consumer Evaluation Processes - Answers :-search qualities: attributes a customer can
determine before purchase
-Experience qualities: attributes a customer can only determine during or after
consumption (restaurants, haircuts)
-Credence qualities: may be impossible to evaluate after consumption (legal/medical
services)
What is a Product? - Answers :Good, service, or idea (or combination)
What is a Good? - Answers :Tangible, physical entity
What is a Service? - Answers :Intangible, result of application of human and mechanical
efforts to people or objects
What is an Idea? - Answers :Concept, philosophy, image, or issue
What are the 2 types of Products? - Answers :1. Consumer Products
2. Business Products
What are Consumer Products? - Answers :Purchased to satisfy personal and family
needs, and are classified according to how buyers generally behave when purchasing
them
What are some Sub-Types of Consumer Products? - Answers :Convenience Proudcts-
inexpensive and frequent
Shopping Products- planned efforts to purchase
Specialty Products- have unique characteristics
Unsought Products- tow truck, emergency room, etc
What are Business Products? - Answers :Purchased to use for operations to resell, or to
use in manufacturing of another product (this is MOST COMMON product type) (ex-
installations, raw materials, business services, MRO supplies)
What are Core Products? - Answers :Physical or intangible good or service that the
customer receives (ex- acetaminophen, cola, beer)
What is a Branded Product? - Answers :Core Product plus the characteristics that allow
the consumer to differentiate from similar products (Tylenol, Coca-Cola, Blue Moon)
What is a Functional Modification? - Answers :Changes impact versatility, effectiveness,
convenience- requires redesign of product (Ex- New Heinz ketchup packets)
What percentage of new products fail? - Answers :80%
What are the two goals and perspectives for NPD? - Answers :1. The firm's perspective
2. The customer's perspective
What are the 7 steps of developing a new product? - Answers :1. Idea generation
2. Idea screening (think Shark Tank)
3. Concept testing (focus groups)
4. Business analysis
, 5. Development of physical product
6. Beta and Market testing (test markets)
7. Product launch
Product Adoption Process (buyer's perspective) - Answers :1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
What are the 5 types of product adopters? - Answers :-Innovators
-Early adopters
-Early majority (companies want them)
-Late majority (companies want them)
-Laggards
Why is Studying Service Marketing Important? - Answers :Services are 75% of US GDP
(this is a global trend)
What are the factors leading to service growth? - Answers :-Aging populations
-Increased leisure time
-High discretionary income
-Changing sociocultural values
What does a service include? - Answers :EVERY INTERACTION between any
customer and anyone representing the company (there can never be a product w/o
service)
What are the 4 Characteristics of a Service? - Answers :1. Intangibility- you buy a series
before seeing/receiving the service, which differs from goods
2. Heterogeneity- services vary EVERY TIME, depending on location, employee,
customer variance (unlike products)
3. Inseparability- Production and consumption happen simultaneously
4. Perishability- Service cannot be saved, and its unused capacity cannot be reserved
nor inventoried (difficult for supply and demand)
Consumer Evaluation Processes - Answers :-search qualities: attributes a customer can
determine before purchase
-Experience qualities: attributes a customer can only determine during or after
consumption (restaurants, haircuts)
-Credence qualities: may be impossible to evaluate after consumption (legal/medical
services)
