CHAPTER 8 11.
Uses commercial marketing concepts
1. Enables a service firm to differentiate
itself by delivering consistently higher
quality than its competitor do
Service Quality
2. Services cannot be stored for later sale
or use
Perishability
3. Those that consumers neither know
about nor normally think of buying (i.e.
life insurance, blood donations)
Products
4. Characteristics of a product or service
that bear on its ability to satisfy stated
or implied customer needs (ie. Total
quality management, performance/
conformance quality)
Product Quality
5. Include raw materials and
manufactured materials and parts
Materials and Parts
6. Products and services bought by final
consumers for personal consumption;
includes convenience products,
shopping products, and specialty
products
Consumer Products
7. Total Financial value of a brand
Brand value
8. Companies are now creating and
managing customer experiences with
their brands or company
Experiences
9. Service quality depends heavily on the
quality of the buyer-seller interaction
during the service encounter.
International Marketing
10. Service companies need to increase
service differentiation, service quality,
and service productivity
Interactive Marketing
to influence individuals’ behavior to
improve their well-being and that of
society
Social Marketing
12. Marketers can position brands at any
of three levels: Attributes, Benefits,
Benefits and Values
Brand Positioning
13. Lengthening product line beyond the
current range – downward, upward, or
both
Line Stretching
14. Service Profit chain, Internal
Marketing, Interactive Marketing
Additional Marketing Strategies
for Service Firms
15. Product attributes, Brand Name and
Symbol Selection, Packaging, Labeling,
product Support Services
Individual Product Decisions
16. A product that consists of activities,
benefits, or satisfactions and that is
essentially intangible and does not
result in the ownership of anything
Service
17. Services cannot be separated from
their providers
Inseparability
18. Internal Service Quality, Satisfied and
productive service employees, greater
service value, satisfied and loyal
customers, healthy service profits and
growth
Five links of the service profit
chain
19. Products purchased for further
processing or for use in conducting a
business; includes materials and parts,
capital items, and supplies and services
Industrial Products
20. The service firm must orient and
motivate its customer-contact
employees and supporting service
people to work as a team to provide
customer satisfaction
Internal Marketing
21. Line extensions, brand extensions,
multibrands, new brands
Brand Development
22. Include operating supplies, repair and
maintenance items, and business
services
Supplies and Services
23. Activities undertaken to create,
maintain, or change attitudes and
behavior toward particular places
Place Marketing
24. The differential effect that knowing
the brand name has on customer
response to the product or its
marketing
Brand Equity
25. Quality, features, style and design
Product and Service attributes
26. Services cannot be seen, tasted, felt,
heard, or smelled before purchase
Intangibility
27. Manufacturer’s (or national) brand,
Private label (or store) brand,
licensing, co-branding
Brand Sponsorship
28. Bought less often and compared
carefully on suitability, quality, price,
and style (i.e. cars, appliances)
Shopping products
29. Number of items within each product
line
Length
30. A group of products that are closely
related because they function in a
similar manner, are sold to the same
types of outlets, or fall within given
price ranges
Product Line
31. Describes the appearance of the
product
Style
32. Creates a competitive advantage by
developing a differentiated offer,
delivery, and image
Service Differentiation
33. Links service firm profits with
employee and customer satisfaction
Service Profit Chain
34. A competitive tool for differentiating a
product from competitors’ products.
They are assessed based on the value
to the customer vs. its cost to the
company
Product Features
35. Quality of services depends on who
provides them and when, where, and
how
Variability
36. Involves designing and producing the
container or wrapper for a product
Packaging
37. Consists of all the product lines and
items that a particular seller offers for
sale
Product Mix
38. Number of versions for each product
in the line
Depth
39. Refers to the cost side of marketing
strategies for service firms, including
investment decisions on employee
hiring and training as well as service
quantity and quality (i.e airline
industry)
Service Productivity
40. Extending an existing brand name to
new product categories
Brand extension
41. Product service features design, a
quality level, a brand name, and
packaging
Actual Product

42. A brand created and owned by a
reseller of a product or service
Store Brand
43. A major characteristic of services –
they are produced and consumed at
the same time and cannot be
separated from their providers
Service Inseparability
44. A name, term, sign, symbol, 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
Brand
45. The practice of using he established
brand names of two different
companies on the same product
Co-branding
46. A consumer product that customers
usually buy frequently, immediately,
and with a minimum of comparison
and buying effort
Convenience Product
47. Extending an existing brand name to
new forms, colors, sizes, ingredients,
or flavors of an existing product
category
Line Extension
48. A consumer product with unique
characteristics or brand identification
for which a significant group of buyers
is willing to make a special purchase
effort
Specialty Product
49. Product attributes – quality, features,
style and design branding – brand;
packaging – designing; labeling –
identifies and informs; product
support and services – customer
interaction
Individual Product Decisions
50. Additional consumer services and
benefits
Augmented Product
51. The chain that links service firm profits
with employee and customer
satisfaction
Service Profit Chain
52. The set of all product lines and items
that a particular seller offers for sale
Product Mix or Product Portfolio
53. A major characteristic of services –
their quality may vary greatly,
depending on who provides them and
when, where and how
Service Variability
54. Anything that can be offered to a
market for attention, acquisition, use,
or consumption that might satisfy a
want or need
Product
55. Training service employees in the fine
art of interacting with customers to
satisfy their needs
Interactive Marketing
56. What benefits or services the
customer is really buying. The solution
to the customers’ problem. The idea
behind the product (freedom, hope,
etc.)
Core Customer Value
57. Can include symbols and branding
Image
58. Consists of activities undertaken to
create, maintain, or change attitudes
and behavior of target consumers
toward an organization
Organizational marketing
59. Four Characteristics of Service
Marketing
Intangibility, variability,
inseparability, perishability
60. Can include distinctive features
Offer
61. Can include more able and reliable
customer contact people,
environment, or process
Delivery

62. The third level of products and services
that adds more customer value
Augmented Product – offering
additional consumer services and
benefits
63. Is the level of quality that supports the
product’s positioning
Quality level
64. Four classifications of consumer
products
Convenience products, shopping
products, specialty products,
unsought products
65. Brand Strategy decisions include
Product attributes, product
benefits, product beliefs and values
66. Represents what buying the product
or service will do for the customer
Experiences
67. Which of the following is true with
regard to products?
Products include services events,
persons, places, organizations, ideas,
or a mixture of these
68. Are form of product that consists of
activities, benefits, or satisfactions
offered for sale that are essentially
intangible and do not result in the
ownership of anything
Services
69. Which of the following exemplifies a
service?
Retail
70. Marketing mix planning begins with
______.
Building an offering that brings
value to target customers
71. Which of the following is true with
regard to services?
Services are a form of product that
consists of activities, benefits, or
satisfactions offered for sale
72. Which of the following is an example
of pure tangible good?
A bag of Potato Chips
73. Which of the following product
offering is intangible?
A taxi ride
74. Product planners need to consider
products and services on three levels.
Each level adds more customer value.
The most basic level is the ______,
which addresses the question, “What
is the buyer really buying?”
Core customer value
75. A product is a key element in the
_______. At one extreme, it may
consist of pure tangible goods or at
the other extreme, pure services
Market offering
76. To differentiate themselves, many
companies are going beyond products
and services, they are developing and
delivering customer __________.
Experiences
77. Product planners must design the
actual product and find ways to
______ it in order to create the bundle
of benefits that will provide the most
satisfying customer experience
Augment
78. Products and services fall into two
broad classifications based on the
types of consumers that use them.
Which one of these broad classes?
Industrial products
79. Most manufactured materials and
parts are sold directly to _______.
Price and service are the major
marketing factors; branding and
advertising tend to be less important
Industrial Users
80. Are industrial products that aid in the
buyer’s production or operations, 89. A stripped-down model without any
including installations and accessory extras is the starting point; a company
equipment can create a higher-level model by
Capital items adding ____
Features
81. Consists of activities undertaken to
create, maintain, or change attitudes 90. In assessing which new features to add
toward particular people to a product, accompany must weigh
Person Marketing each feature’s _______ to customers
versus its ____________.
82. Is defined as the use of commercial Value; Cost
marketing concepts and tools in
programs designed to influence
individuals’ behavior to improve their
well being and that of society
Social marketing

83. Public health campaigns to reduce

alcoholism, drug abuse, smoking, and
obesity are all examples of
Social Marketing

84. Developing a product or service

involves defining the benefits that it
will offer. These benefits are
communicated and delivered by such
as quality, features, and style and
design
Product Attributes

85. Is one of the marketer’s major

positioning tools because it has a
direct impact on product or service
performance; it is therefore closely
linked to customer value and
satisfaction
Product Quality

86. Is an approach in which all the

company’s people are involved in
constantly improving the products,
services, and businesses processes.
Total Quality Management

87. Two dimensions of product quality

Consistency and level

88. Which of the following types of quality

refers to freedom from defects and
consistency in delivering a targeted
level of performance?
Conformance