Chapter 8 Product

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Chapter 8Product Services Concepts
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Whats a Product?

• Good
• Service
• Idea

Experience Credence
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Product-Service Continuum
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Levels of Total Product
3. Augmented Product Additional services
benefits (unexpected)
Product is a complex bundle of benefits
Installation
Packaging
Style
Brand name
Delivery credit
After- sale service
Core good or service
Design
1. Core product What the consumer is really
buying
Warranty
2. Actual Product
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Assessing Service Failure

• Attributions
• Who is at fault?

• Justice
• Fairness

Satisfaction
Loyalty
Service Failure
Recovery
Intent to Repurchase
Word-of-Mouth

• Expectations
• Expectations of failure
• Expectations of recovery

IPD
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Service Recovery Paradox
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Classifying Products

• Consumer
• vs.
• Business

Based on the purpose for which the product is
bought
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Types of Products

• Determined by consumers behave when buying an
  item.
• Convenience
• Shopping
• Specialty
• Unsought

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Consumer Products

• Convenience frequently purchased
• Grocery products
• Staples
• Emergency items
• MM
• Margins

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Consumer Products

• Shopping (less frequent)
• Major appliances

MM Margins
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Consumer Products

• Specialty special purchase effort
• Principle of scarcity / uniqueness

MM Margins
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Consumer Products

• Unsought

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Product Line Product Mix

• Product Item
• Product Line
• Product Mix
• Width
• Depth

Product mix is also known as product assortment
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Item
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Product Line

• LAMPS
• Table
• Ceiling
• Track
• Desk

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Product Mix
Product Line 1
Product Line 2
Product Line 3

• TABLES
• Kitchen
• Dining Room
• End
• Coffee
• Outdoor
• Conference
• Computer

• CHAIRS
• Dining Room
• Living Room
• Bed Room
• Outdoor
• Desk

• LAMPS
• Table
• Ceiling
• Track
• Desk

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Product Depth
Product Line 1
Product Line 2
Product Line 3

• TABLES
• Kitchen
• Dining Room
• End
• Coffee
• Outdoor
• Conference
• Computer

• CHAIRS
• Dining Room
• Living Room
• Bed Room
• Outdoor
• Desk

• LAMPS
• Table
• Ceiling
• Track
• Desk

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Product Width
Product Line 1
Product Line 2
Product Line 3

• TABLES
• Kitchen
• Dining Room
• End
• Coffee
• Outdoor
• Conference
• Computer

• CHAIRS
• Dining Room
• Living Room
• Bed Room
• Outdoor
• Desk

• LAMPS
• Table
• Ceiling
• Track
• Desk

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Brand

• Name, term, sign, symbol, design, or some
  combination that identifies the products of a
  firm.
• Brand name - part of a brand that can be spoken
• Brand mark - symbolic

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Branding Terms

• Trademark legal designation of the exclusive
  use of brand
• Trade Name Commercial, legal name

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Value of Branding

• To Buyers
• Quality assurance
• Rewards / Risks
• To Sellers
• Loyalty
• Price premiums
• Resistance to competition

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Degrees of Brand Loyalty
Insistence
Preference
Recognition
Notion of Brand Equity
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Choosing a Brand Name

• May want a descriptive name
• 1. generic 2. descriptive 3. suggestive
• Evoke desired connotations
• Pronounceable and easy
• Global

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Perceived Brand Quality
Brand Associations
Brand Loyalty
Brand Name Awareness
XEROX
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Types of Brands

• Manufacturer Brands
• Private Distributor OR Retailer OR Store OR
  Reseller Brands wholesalers or resellers
• Captive Brands
• Generic Brands

Battle of the Brands Brand Name Protection
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Genericide

• Aspirin
• Cellophane
• corn flakes
• Granola
• Kerosene
• Linoleum
• raisin bran
• shredded wheat
• Thermos
• Zipper

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Branding Policies

• Family Branding
• Economies of scale ()
• Consistent image ()
• Differentiation (-)
• Failure risk of 1 product cascades (-)

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Branding Policies

• Individual Branding

Lowered risks () Greater shelf space
() Economies of Scale (-) Equity Transfer (-)
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Branding Policies

• Sub-brands

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Packaging

• Packaging Functions
• Protect and Maintain Functional Form
• Offer Convenience
• Marketing

UPC