Chapter 9: Designing and Managing Products

1. A product is anything that can be offered to a market for __________,

__________, __________, or __________ that might satisfy a want or need. It
includes physical objects, services, places, organizations, and ideas.
Figure 9.1

2.
3. Marketers must uncover the core benefit to the consumer of every product
and sell these benefits rather than merely selling __________.
4. Facilitating products are services or goods that must be __________ for the
guest to use the core product.
5. Product design requires an understanding of the __________ markets and the
facilitating services that they require.
6. Core products require __________ products but do not require supporting
products.
7. Supporting products are __________ products offered to add value to the core
product and help to differentiate it from the competition.

8. In summary, supporting products offer a __________ advantage only if they are

properly planned and implemented. They must meet or exceed customer
expectations to have a positive effect.
9. The delivery of the service affects the customers __________ of the service,
illustrated by the room service example earlier. The augmented service
offering combines what is offered with how it is delivered.
10.If a product is not accessible it has no __________.
11.Two barriers to accessibility are __________ of operation and __________ of
knowledge.
12.__________ terms provide descriptions for the atmosphere of a particular set of
surroundings.
13.The main __________ dimensions of atmosphere are color, brightness, size,
and shape.
14.The main __________ dimensions of atmosphere are volume and pitch.
15.The main __________ dimensions of atmosphere are scent and freshness.
16.The main __________ dimensions of atmosphere are softness, smoothness, and
temperature.
17.Bright colors, bright lights, loud noises, crowds, and movement are typical
elements of a _____-_____ environment, whereas their opposites are
characteristic of a _____-_____ environment.
18.As marketers we should understand what the customer wants from the
buying experience and what atmospheric variables will fortify the beliefs and
__________ reaction the buyers are seeking or, in some cases, escaping.
19.In the __________ stage, the customer makes the initial inquiry contact.
20.In addition to employeecustomer interaction, hospitality firms also have to
consider how customers will interact with each other during the __________
stage.
21.The __________ phase is when the customer is through using a product and
departs. For example, hotel guests may need a bell person to help with the
bags.
22.The passenger paying a premium to sit in first class did not appreciate a
worker in dirty construction clothes in the next seat. Hospitality organizations
must manage the interaction of customers to ensure that some do not
negatively affect the __________ of others.

23.Involving the guest as an employee can increase __________, improve

customer __________, and reduce __________.
24._____-_____ technologies (SSTs) are a rapidly growing means for increasing
customer coproduction in food-service experiences.
25.A brand is a name, term, sign, symbol, design, or a combination of these
elements intended to __________ the goods or services of a seller and
differentiate them from competitors.
26.A brand __________ is the part of a brand that can be vocalized. Examples are
Disneyland, Hilton, Carnival Cruise, and Outback.
27.A brand __________ is the part of a brand that can be recognized but is not
utterable, such as a symbol, design, or distinctive coloring or lettering.
Examples are McDonalds golden arches and Hiltons H.
28.A __________ is a brand or part of a brand given legal protection; it protects
the sellers exclusive rights to use the brand name or brand mark.
29.Brands identify the source or maker of a product and allow consumerseither
individuals or organizationsto assign responsibility for its __________ to a
particular company.
30.Brands signal a certain level of __________ so that satisfied buyers can easily
choose the product again.
31.__________ also can translate into customer willingness to pay a higher price
often to 25 percent more than competing brands.
32.Marketers need to teach consumers _____ the product isby giving it a
name and other brand elements to identify itas well as what the product
does and why consumers should care.
33.Branding creates __________ structures that help consumers organize their
knowledge about products and services in a way that clarifies their decision
making and, in the process, provides value to the firm.
34.Brand equity is the added value endowed on products and services. It may be
reflected in the way consumers _____, _____, and _____ with respect to the
brand, as well as in the prices, market share, and profitability the brand
commands for the firm.
35.The premise of _________-based brand equity models is that the power of a
brand lies in what customers have seen, read, heard, learned, thought, and
felt about the brand over time.
36.A brand has __________ customer-based brand equity when consumers react
more favorably to a product and the way it is marketed when the brand is
identified than when it is not identified.

37.Consumer __________ is what drives the differences that manifest themselves

in brand equity.
38.The quality of the investment in brand building is the critical factor, not
necessarily the __________ beyond some minimal threshold amount.
39.A brand promise is the marketers __________ of what the brand must be and
do for consumers. At the end of the day, the true value and future prospects
of a brand rest with consumers, their knowledge about the brand, and their
likely response to marketing activity as a result of this knowledge.
40.Understanding consumer brand __________all the different things that
become linked to the brand in the minds of consumersis thus of paramount
importance because it is the foundation of brand equity.
41.Unlike food courts in which restaurants are operating by individual
proprietors, multi-branding features different brands owned by a __________
company operating under a common roof.
42.This concept is similar to multi-branding with two or more brands but with
__________ ownership. These brands may or may not be operated by a single
proprietor.
43.Another form of co-branding is two entirely different products that may have
common ownership operating __________.
44.A company can obtain new products through __________buying a whole
company, a patent, or a license to produce someone elses product.
45.New product development starts with idea __________, the systematic search
for new ideas.
46.The company should carefully define the new product development strategy.
The strategy should start with what products and __________ to emphasize.
47.The companys __________ are another good source because they are in daily
contact with customers.
48.Consumer needs and wants can be examined through consumer __________.
49.Often, the copy product is of inferior quality and may create a _____
reputation for the product class, so when the original company enters the
market it must overcome a negative image.
50.__________ are close to the market and can pass along information about
consumer problems and new product possibilities.

51.__________ can tell the company about new concepts, techniques, and
materials that can be used to develop new products.
52.The idea or __________ screening stage is the appropriate time to review
carefully the question of product line compatibility.
53.A product __________ envisions a possible product that company managers
might offer to the market.
54.A product __________ is a detailed version of the idea stated in meaningful
consumer terms.
55.A product __________ is the way that consumers picture an actual or potential
product.
56.A clear product concept greatly assists with __________, __________, and
__________.
57.Concept testing occurs within a group of target consumers. New product
concepts may be presented through word or __________ descriptions.
58.The next step is marketing strategy development: designing an initial
marketing strategy for __________ the product into the market.
59.The first part describes the target market, the planned product __________,
and the sales, market share, and profit goals for the first few years.
60.The second part of the marketing strategy statement outlines the products
planned price, distribution, and marketing __________ for the first year.
61.The third part of the marketing strategy statement describes the planned
long-run sales, __________ goals, and marketing mix strategy.
62.Market testing allows the marketer to gain __________ in marketing the
product, to find potential problems, and to learn where more information is
needed before the company goes to the great expense of full introduction.

63.Figure 9.5

64.During product __________, sales are zero and the companys investment costs
add up.
65.__________ is a period of slow sales growth as the product is being introduced
into the market. Profits are nonexistent at this stage because of the heavy
expenses of product introduction.
66.__________ is a period of rapid market acceptance and increasing profits.
67.__________ is a period of slowdown in sales growth because the product has
achieved acceptance by most of its potential buyers.
68.__________ is the period when sales fall off quickly and profits drop.
69.In practice, it is very hard to __________ the sales level at each PLC stage, the
length of each stage, and the shape of the PLC curve.
70.The products current PLC position suggests the best marketing strategies,
and the resulting marketing strategies affect product __________ in later lifecycle stages.