MGTA02H3 Chapter Notes - Chapter 3: Brand Awareness, Brand Loyalty, University Of Toronto Scarborough
University Of Toronto Scarborough (UTSC) Date: January 22, 2017
Course: MGTA02 (Winter)
Professor: Chris Bovaird
Shahriyar Safavi
Week 3 – Products: The Things Consumers Need and Want
Terminology
1. Product: A good or service that fills a buyer’s need or satisfies a want.
2. Function: What a product is intended to do.
3. Features: Additional attributes or offerings which contributes improved usefulness or
experiences to a product.
4. Benefits: The advantages that are derived from purchasing a product.
5. Value: The regard with which a product is held by potential buyers, expressed as its
financial worth.
6. Value Package: the bundle of tangible and intangible functions, features, and benefits
that a business offers to buyers of a product.
7. Consumer products: Products purchased by the end user, for personal use.
8. Industrial products: The parts, ingredients, materials, and supplies that are bought by
one business from another in the process of making consumer products.
9. Convenience products: Inexpensive consumer goods or services which are purchased
frequently and with little expenditure of time and effort.
10. Shopping products: Products that are moderately expensive, and purchased
infrequently causing consumers to spend time comparing features, benefits and price.
11. Specialty products: Products to which consumers will attach a great deal of importance
and for which they will spend a good deal of both time and effort to find exactly what
they want.
12. Diffusion of innovations theory: Explains how an idea or a product gains momentum
and spreads through a population.
13. Product life cycle: The introduction, growth, maturity, decline and ultimate demise of
products and industries, as technologies and tastes change.
14. Introduction: The stage if the product life cycle when the product, or the technology
that created it, is new and little known.
15. Growth: The second stage of the life cycle, when demand for a product expands rapidly
as many new consumers enter the market.
16. Maturity: The third stage in the product life cycle, when sales peak.
17. Saturation: When a market can no longer absorb more products.
18. Barriers to exit: Characteristics which make an industry difficult, time consuming or
expensive for a business to leave.
19. Research and Development (R&D): Looking for innovations and ideas which will lead to
the next generation of products.
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Document Summary
University of toronto scarborough (utsc) date: january 22, 2017. Week 3 products: the things consumers need and want. In filling a need or satisfying a want, most products deliver three elements: Features: what the product can do besides its main function/ Benefits: some of the extras that come with owning a product. Ex: a car, function: transportation, features: heated seats, benefits: independence from parents. Convenience products: inexpensive consumer goods or services which are purchased frequently and with little expenditure of time and effort. Shopping products: products that are moderately expensive, and purchased infrequently causing consumers to spend time comparing features, benefits and price. Specialty products: products to which consumers will attach a great deal of importance and for which they will spend a good deal of both time and effort to find exactly what they want. Innovators this small percentage of the population are people who actively want to be the first to try something new.
