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BUSML 3250 Exam 3 Questions and Answers Latest Update
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BUSML 3250 Exam 3 Questions and Answers Latest Update
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BUSML 3250 Exam 3 Questions andAnswers Latest Update
product - Answer-a good, service, or idea consisting of a bundle of tangible and
intangible attributes that satisfies consumers' needs and is received in exchange for
money or something else of value
good - Answer-has tangible attributes that a consumer's five senses can perceive
nondurable good - Answer-an item consumed in one or a few uses, such as food
products and fuel
durable good - Answer-a good that usually lasts over many uses, such as appliances,
cars, and smartphones
Services - Answer-intangible activities or benefits that an organization provides to
satisfy consumers' needs in exchange for money or something else of value
idea - Answer-a thought that leads to a product or action, such as a concept for a new
invention or getting people out to vote
Consumer Products - Answer-products purchased by the ultimate consumer
Business products - Answer-products organizations buy that assist in providing other
products for resale.
Also known as B2B products or industrial products
Convenience products - Answer-items that the consumer purchases frequently,
conveniently, and with a minimum of shopping effort.
ex: toothpaste, hand soap, cake mix
Shopping products - Answer-items for which the consumer compares several
alternatives on criteria such as price, quality, or style.
ex: cameras, tv, flight tickets
Specialty products - Answer-items that the consumer makes a special effort to search
out and buy.
ex: rolls-royce car, rolex watch, etc.
,Unsought products - Answer-items that the consumer does not know about or knows
about but does not initially want.
derived demand - Answer-Business demand that ultimately comes from (derives from)
the demand for consumer goods.
Support products - Answer-items used to assist in producing other products and
services.
ex: installations, accessory equipment, supplies, industrial services
product class - Answer-the industry a product belongs to
product item - Answer-a specific product that has a unique brand, size, or price.
ex: Tylenol P.M., tylenol kids, etc.
Stock Keeping Unit (SKU) - Answer-a unique identification number that defines an item
for ordering or inventory purposes
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.
ex: Nike's shoes product line, nike clothes product line
product mix - Answer-consists of all of the product lines offered by an organization
Feature bloat - Answer-the tendency for some product developers to add extra features
to a product that are not of any benefit to consumers and unnecessarily add to the cost
of the product
feature fatigue - Answer-consumers get worn down when there are too many features
on a product; buyer's remorse when we don't use all the features and feel like we
wasted money on them
continous innovation - Answer-a modification of an existing product that sets one brand
apart from its competitors. requires no new learned behavior from consumers
dynamic continuous innovation - Answer-Disrupts consumers normal routine but does
not require totally new learning.
ex: Regular mop compared to new Swiffer wet jet
discontinous innovation - Answer-involves making the consumer learn entirely new
consumption patterns to use the product.
,ex: electric car, amazon smart home
product line extension - Answer-an incremental improvement of an existing product line
the company already sells
ex: new potato chip flavors
brand extension - Answer-involves putting an established brand name on a new product
in an unfamiliar market.
ex: Colgate frozen dinners (colgate makes toothpaste)
protocol - Answer-A statement that, before product development begins, identifies: (1) a
well-defined target market; (2) specific customers' needs, wants, and preferences; and
(3) what the product will be and do to satisfy consumers.
Factors leading to failure of new product: - Answer-1. There's no significant point of
difference (nothing that separates it from competition)
2. Incomplete market and product protocol before product development starts
3. Not satisfying customer needs on critical factors
4. Bad timing
5. No economical access to buyers
6. Poor execution of the marketing mix (4 P's)
7. Too little market attractiveness
8. Poor product quality
Organizational problems leading to product failures: - Answer-1. Encountering
groupthink in taskforce meetings
2. Avoiding the "NIH" (not-invented-here) problem
open innovation - Answer-practices and processes that encourage the use of external
as well as internal ideas as well as internal and external collaboration when conceiving,
producing, and marketing new products and services
New Product Vitality Index - Answer-tracks the percentage of total company sales that
come from new products each year.
, New Product Vitality Index Calculation - Answer-New Product Vitality Index =
(Company Sales Rev from new products in past 3 years) / (Total Current-Year Sales
Revenue) x 100
new-product development process - Answer-the seven stages an organization goes
through to identify opportunities and convert them into salable products or services
new-product strategy development - Answer-the stage of the new-product process that
defines the role for a new product in terms of the firm's overall objectives
disruptive innovation - Answer-a new product or technology that totally disrupts its
competitors / industry
ex: wikipedia
Idea generation - Answer-the second stage of the new-product development process,
involves developing a pool of concepts to serve as candidates for new products
Crowdsourcing - Answer-involves generating insights leading to actions based on ideas
from massive numbers of people
Screening and Evaluation - Answer-the stage of the new-product process that internally
and externally evaluates new-product ideas to eliminate those that warrant no further
effort
concept tests - Answer-external evaluations with consumers that consist of preliminary
testing of a new-product idea rather than an actual product
Business analysis - Answer-specifies the features of the product and the marketing
strategy needed to bring it to market and make financial projections
prototype - Answer-a full-scale operating model of the product
Development - Answer-the stage of the new-product process that turns the idea on
paper into a prototype
Market testing - Answer-the stage of the new-product process that exposes actual
products to prospective consumers under realistic purchase conditions to see if they will
buy
test marketing - Answer-involves offering a product for sale on a limited basis in a
defined area for a specific time period
standard test market - Answer-a company develops a product and then attempts to sell
it through normal distribution channels in a number of test-market cities
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