Exam 8: Products, Services, and Brands: Building Customer Value

Why might a company pursue a strategy of less product line consistency?

Refer to the scenario below to answer the following questions. Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors.But after two years,the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended. Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings.Specialty shops loved to display the products in their fancy,lighted showcases,but such specialty shops alone were not profitable.Herb Marks established a brand name,known merely as Marks,and decided to expand on it. Herb extended his writing utensil lines to include quills,felt- tip pens,and multiple- cartridge pens that write in different colors.He even added a line of various grades of personalized stationery and business cards.Perhaps Herb's biggest added touch,however,was the addition of two salespeople who would work to explain the diverse array of products offered by Marks,as well as nurture existing accounts. "We make an excellent product," Herb Marks stated,"and we honor a good guarantee on everything we sell.But let's face it-we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Marks brand was fast- becoming synonymous with top- notch customer service.Part of the purchase package brought personal visits from the Marks representative,before the purchase and long after. -The new felt- tip pens,multiple- cartridge pens,and quills are all examples of .

Products and services fall into two broad classes based on the types of consumers that use them.Name these two broad classes and describe how they are different from each other.

Style is a larger concept than design.Design describes the appearance of a product.

Service inseparability means that the quality of services depends on who provides them,as well as when,where,and how they are provided.

Retailers and wholesalers who have created their own brands-such as Walmart's Sam's Choice beverages and food products-are participating in co- branding.

Refer to the scenario below to answer the following questions. Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors.But after two years,the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended. Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings.Specialty shops loved to display the products in their fancy,lighted showcases,but such specialty shops alone were not profitable.Herb Marks established a brand name,known merely as Marks,and decided to expand on it. Herb extended his writing utensil lines to include quills,felt- tip pens,and multiple- cartridge pens that write in different colors.He even added a line of various grades of personalized stationery and business cards.Perhaps Herb's biggest added touch,however,was the addition of two salespeople who would work to explain the diverse array of products offered by Marks,as well as nurture existing accounts. "We make an excellent product," Herb Marks stated,"and we honor a good guarantee on everything we sell.But let's face it-we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Marks brand was fast- becoming synonymous with top- notch customer service.Part of the purchase package brought personal visits from the Marks representative,before the purchase and long after. -What type of consumer products does Marks manufacture?

The major product line decision involves .

Give an example of the second level of a product.

Many companies now use a combination of phone,e- mail,fax,Internet,and other technologies to provide _.

Give three examples of specialty products.

Some analysts see as the major enduring asset of a company,outlasting the company's specific products and facilities.

A hickory rocking chair,handmade by an Amish woodcarver in Lancaster,Pennsylvania,from locally grown wood is an example of a(n).

The of the product mix refers to how closely related the various product lines are in end use,production requirements,distribution channels,or some other way.

A company can stretch its product either upward or downward,but not both directions.

Which of the following types of quality refers to freedom from defects and consistency in delivering a targeted level of performance?

Which of the following does NOT belong to the materials and parts group of industrial products?

When a company lengthens its product line beyond its current range,it is .

Gina's Nail Salon is serious about pleasing its customers.Employees are trained to immediately and pleasantly respond to any customer complaints,and they are empowered to offer discounts and free add- ons to customers who believe they have received anything less than the best service.Gina's Nail Salon focuses on .

Berkowitz Piano Company can expand its product line in one of two common ways.Which of the following is one of those ways?