BUSI 2204 Review Practice Exam
Questions & Answers.
Product vs Service - CORRECT ANSWER Product - anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need. Service - activity, benefit, or
satisfaction offered for sale; it is intangible and does not result in ownership of anything.
Three Levels of a Product - CORRECT ANSWER Augmented product (warranty), Actual product (brand
name), Core Customer Value (ex. Apple iPad, buying entertainment, self-expression, productivity)
Consumer products - CORRECT ANSWER bought by final consumers for personal consumption
Industrial products (b2b) - CORRECT ANSWER bought by individuals and organizations for further
processing or use in conducting a business
Marketing Considerations for Convenience and Shopping Products - CORRECT ANSWER Customer
Buying Behaviour, Price, Distribution, Promotion. Convenience (toothpaste), Shopping (major
appliances, fridge)
Marketing Considerations for Specialty and Unsought Products - CORRECT ANSWER Specialty: Luxury
goods, such as Rolex watches or fine crystal, strong brand preference. Unsought products: Life insurance
and Red Cross blood donations, little is known about it.
Individual Product Decisions - CORRECT ANSWER product attributes, branding, packaging, labeling and
logos, product support services
Product Line - CORRECT ANSWER closely related products that have similar functions and customer
groups. Ex. Starbucks, coffee, tea, snacks
Product Mix - CORRECT ANSWER Toyota car models that are broken down into categories like suv,
trucks, etc. It is like a product portfolio.
, Product width - CORRECT ANSWER Number of different product lines the company carries
Product depth - CORRECT ANSWER Number of versions offered for each product in the line
Brand equity - CORRECT ANSWER differential effect that knowing the brand name has on customer
response to the product or its marketing. Positive brand equity, consumers react more favorably to the
brand than to an unbranded version of the same product.
Major Brand Strategy Decisions - CORRECT ANSWER brand positioning → brand name selection →
brand sponsorship → brand development
Logos - CORRECT ANSWER Toronto Maple Leafs and Leafs by Snoop, trademark, copy logo
Brand sponsorships - CORRECT ANSWER Brands join forces like nike and apple
types of brands - CORRECT ANSWER private branding (presidents choice) vs. public brands (coca cola)
Four Service Characteristics - CORRECT ANSWER Intangibility (not physical), Inseparability (can't be
separate from provider), Variability (quality depends on who, where, how), Perishability (service can't be
stored for later use). Ex. Airlines
* Major Stages in New Product Development - CORRECT ANSWER Idea generation, idea screening,
concept development and testing, marketing strategy development, business analysis, product
development, test marketing, commercialization
Commercialization - CORRECT ANSWER develop only the best ideas into profitable products
Why do new products fail? - CORRECT ANSWER Overestimated market, poor design, Incorrect
positioning, pricing error, product orientation. Ex. Crystal Pepsi, company invested heavily in advertising
campaigns that emphasized the drink's purity and clearness, but failed to effectively communicate its
taste and benefits to consumers.
