Chapter 8

Product

all that a customer receives in an exchange

Core product,
actual product,
augmented product

3 layers of the product

durable goods

consumer products that provide benefits over a period of months, years, or even decades

Nondurable goods

products consumed over the short term

Convenience products

typically nondurable goods or services bought with minimal effort that may be frequently purchased

staple products

basic or necessary items that people simply cannot do without (Ex: gasoline, milk, bread)

Impulse products

Products bought on the spur of the moment (Ex: Candy, pop)

Emergency products

items that have to be purchased immediately because of dire need (Ex: diapers, tampons)

Shopping products

goods and services for which consumers will spend time and effort to gather information on price, product attributes, and product quality

shopbots

intelligent agents that can help both businesses and consumers make comparisons among shopping products

Specialty Products

products with unique characteristics that are important to buyers at almost any price - brand loyalty (Michael Kors, Rolex, Calvin Klein)

Unsought Products

goods and services for which a consumer has little awareness or interest until a need arises (Ex: burial plots, life insurance for young people)

equipment

____________ is used in daily operations

Maintenance, repair, and operating (MRO)

goods that are consumed relatively quickly

Raw materials

products of fishing, lumber, agricultural, and mining industries used to manufacture finished goods

heavy equipment

Also called capital equipment or installations

light or accessory equipment

items that are more portable, cost less, and do not last as long as heavy equipment

Maintenance items

items such as light bulbs, mops, etc.

Repair products

items that include small tools, nuts, bolts, etc.

Operating Supplies

items that include paper, toner, and the oil that keeps machines running smoothly

Raw materials examples

items such as milk, soybeans, trees, and ore

Processed materials

materials produced by firms when they transform raw materials from their original state

specialized services

services that are essential to the organization but are not a part of the actual production of a product

component parts

manufactured goods or sub assemblies of finished items that firms need to complete their own goods

innovation

anything customers perceive as new or different