Contrast the two views about thinking of the core product as a tangible item or a service, as discussed in the text
What will be an ideal response?
Many of us are used to thinking of the core product as some tangible item. However, when the core product is a service, how does it affect our thinking about managing the market offering? Two views can be taken on this point. One is that services are fundamentally different.8 In support of this viewpoint, four characteristics are thought to be unique to services.
1,. Intangibility. Services can't be touched but rather are experienced.
2, Inseparability of production and consumption. Services are consumed as they are produced.
3, Perishability. Following from this inseparability, services cannot be saved or stored for later use.
4, Heterogeneity. Because of their greater dependence on the provider, services have the potential for high variance in their performance. The opposing view is that the differences between products and services are a matter of degree and that all market offerings can be thought of as falling along a continuum of tangibility. Further, few, if any, products or services are completely tangible or completely intangible. Suppliers provide promises of performance satisfaction to prospective customers, which they attempt to tangibilize in their presentation.
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Concerning federal tax treatment of life insurance payments, which of the following statements is/are correct?
A. Death benefits paid to the beneficiary are generally tax exempt. B. Ordinary life premiums are tax deductible for the owner. C. Employer paid premiums for their group life insurance plan are not tax deductible as a business expense. D. None of the above is incorrect.
Typical goals for frequency or loyalty programs include all of the following except:
A) build brand parity. B) induce cross-selling to existing customers. C) differentiate a parity brand. D) preempt the entry of a new brand.