CONCEPT CHECK At the second level of the customer value hierarchy, the marketer has to turn the _____

into a(n) _____. Page 308 basic product; expected product expected product; augmented product core benefit; basic product basic need; basic product basic need; core benefit

At the third level of the customer value hierarchy, the marketer prepares a(n) _____, a set of attributes and conditions buyers normally expect when they purchase this product. Page 308 potential product expected product augmented product basic product anticipated product

A(n) _____ product exceeds customer expectations.

Page 308

strategic superior augmented anticipated potential

_____ goods are purchased without any planning or search effort.

Page 311

Staples Impulse Unsought Emergency Non-durable

_____ is the totality of features that affect how a product looks and functions in terms of customer requirements. Page 316 Style Durability Conformance quality Design Performance quality

_____ refers to how well the product or service is brought to the customer. Page 319 Performance quality Conformance quality Delivery Design Service differentiation

Some products that require the use of other products are called _____ products. Page 328 optional required complementary coordinated captive

When a service firm requires both a fixed fee plus a variable usage fee, this is called _____. Page 328 variable pricing optional pricing captive pricing two-part pricing bundled pricing

_____ is defined as all activities of designing and producing the container for a product. Page 331 Designing Packaging Containerizing Shipping Marketing

The _____ identifies the product or brand.

Page 334

container label advertisement warranty package

A product is anything that can be offered to a market to satisfy a want or need. Page 308 True False

The fundamental level of the customer value hierarchy is the basic product. Page 308 True False

Unknown goods are those the consumer does not know about or does not normally think of buying. Page 311 True False

Capital items include two groups: installations and equipment.

Page 312

True False

Performance quality is the level at which the product's primary characteristics operate. Page 314 True False

Reliability is a measure of the product's expected operating life under natural or stressful conditions. Page 316 True False

Line stretching occurs when a company lengthens its product line beyond its current range. Page 324 True False

Line filling refers to lengthening a product line by adding more items within the present range. Page 326 True False

In mixed bundling the seller offers goods both individually and in bundles. Page 328 True False

Co-branding and brand bundling refer to the same thing.

Page 329

True False

CONCEPT CHALLENGE

Verizon is investing capital to search for all possible augmentations and transformations their product might undergo in the future. This is an example of developing a(n) _____ product. Page 308 Strategic Superior Augmented Anticipated Potential

A refrigerator is an example of a(n) _____.

Page 311

staple good nondurable good durable good industrial good non-consumer good

A Mercedes is an example of a(n) _____ good because interested buyers will travel far to buy one. Page 311 durable nondurable specialty shopping unsought

Buyers expect products to have a high _____, which is the degree to which all the produced units are identical and meet the promised specifications. Page 314 performance quality conformance quality durability differentiation homogeneous quality

Proctor and Gamble produces many different product lines. This is an example of the _____ of the company's product mix. Page 321 offerings consistency width breadth depth

The number of different product lines that a company carries in its mix is referred to as the _____ of the product mix. Page 321 depth length width breadth consistency

A company can classify its products into four types. Which type of product produces a high sales volume and is heavily promoted but has low margins because it is viewed as an undifferentiated commodity? Page 322 core product staple product specialty product convenience items

A company may wish to enter the high end of the market for more growth, higher margins, or simply to position themselves as full-line manufacturers. This is called a(n) _____. Page 325 two-way stretch up-market stretch down-market stretch sideways stretch high-end stretch

Automobile buyers can order electric window controls, CD players and other features in addition to the basic car. These additional features add to the pricing and are called _____. Page 328 two-part pricing captive product pricing optional-feature pricing mixed bundled pricing pure bundled pricing

A _____ is a formal statement of expected product performance by the manufacturer. Page 334 guarantee label promise warranty mission statement

The users total consumption system is the way a user performs the tasks of getting and using products and related services. Page 309 True False

Augmented benefits soon become expected benefits and necessary points-of-parity. Page 309 True False

Heterogeneous shopping goods are similar in quality but different enough in price to justify shopping comparisons. Page 311 True False

Raw materials fall into two major groups: farm products and natural products. Page 311 True False

As competition intensifies, design offers a potent way to differentiate and position a company's products and services. Page 316 True False

Staples are items with lower sales volume, no promotion, and somewhat higher margins than other goods. Page 322 True False

In offering a product line, companies normally develop a basic platform and modules that can be added to meet different customer requirements. Page 322 True False

A company lengthens its product line in two ways: by line stretching and line filling. Page 324 True False

Line stretching is when a product line is lengthened by adding more items within the present range. Page 324 True False

Pure bundling occurs when the firm offers its products only as a bundle. Page 328 True False