Answer to Question 1
D
Answer to Question 2
The most widely accepted approach to classifying consumer products is based on characteristics of consumer buying behavior. It divides products into four categories: convenience, shopping, specialty, and unsought products. However, not all buyers behave in the same way when purchasing a specific type of product. Thus, a single product might fit into several categories. To minimize complexity, marketers think in terms of how buyers generally behave when purchasing a specific item. Examining the four traditional categories of consumer products can provide further insight.
A convenience product is normally marketed through many retail outlets, such as gas stations, drugstores, and supermarkets. Because sellers experience high inventory turnover, per-unit gross margins can be relatively low. Producers of convenience products, such as Wrigley's chewing gum, expect little promotional effort at the retail level and thus must provide it themselves with advertising and sales promotion. Packaging and displays are also important because many convenience items are available only on a self-service basis at the retail level, and thus the package plays a major role in selling the product.
Shopping products are expected to last a fairly long time and are more expensive than convenience products. These products, however, are still within the budgets of most consumers and are purchased less frequently than convenience items. Shopping products are distributed via fewer retail outlets than convenience products. Because shopping products are purchased less frequently, inventory turnover is lower, and marketing channel members expect to receive higher gross margins to compensate for the lower turnover. In certain situations, both shopping products and convenience products may be marketed in the same location. A marketer must consider several key issues to market a shopping product effectively, including how to allocate resources, whether personal selling is needed, and cooperation within the supply chain. Although advertising for shopping products often requires a large budget, an even larger percentage of the overall budget is needed if marketers determine that personal selling is required. The producer and the marketing channel members usually expect some cooperation from one another with respect to providing parts and repair services and performing promotional activities.
Marketers will approach their efforts for specialty products differently from convenience or shopping products in several ways. Specialty products are often distributed through a very limited number of retail outlets. Similar to shopping products, they are purchased infrequently, causing lower inventory turnover and thus requiring high gross margins to be profitable.
Unsought products are those purchased when a sudden problem must be solved, products of which customers are unaware until they see them in a store or online, and products that people do not plan on purchasing. Emergency medical services and automobile repairs are examples of products needed quickly and suddenly to solve a problem. Speed of problem resolution is more important than price or other features a buyer might normally consider if there were more time for making a decision.
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