Check Your Understanding: Answer The Following Questions

Check Your Understanding Answer The Following Questions

Assignment: Check Your Understanding: Answer the following questions. 1. At the second level of the customer value hierarchy, the marketer has to turn them _____ into a(n) _____. 2. ________ is the totality of features that affect how a product looks and functions in terms of customer requirements. 3. Top firms audit service performance by collecting _____ measurements to probe customer satisfiers and dissatisfiers. 4. Services are typically produced and consumed simultaneously. This is an example of the _____ characteristic of services. 5. In considering an observed price, consumers often compare it to an internal price called a(n) _____ price. 6. When PepsiCo sells its cola syrup to Russia for rubles and agrees to buy Russian vodka at a certain rate for sale in the United States, this is called _____. Exercises: Answer the following questions. 1. Name and describe the three groups products can be classified into according to durability and tangibility. 2. Identify and explain the six levels of the product hierarchy. 3. What are the five categories of offerings in the product-service mix? 4. What are the five determinants of service quality in order of importance? 5. What is the six-step procedure most firms use to set their pricing policy? Case Study: Must be at 800 words. Marketing channels hold risks and opportunities for the toy industry. How have United States toy makers used marketing channel backlash to augment sagging sales? Toy distributors have suffered in recent years as pricing and marketing-channel costs have risen. This is especially true in the United States toy industry. Over 80 percent of all toys sold in the United States come from foreign manufacturers. Recent massive toy recalls could change this percentage. With scares generated by the lead in the paint used on the toys and by the danger of infants choking from small parts, United States toy distributors are re-evaluating the cost benefits of foreign sources of supply and, instead, are re-focusing on more traditional domestic marketing channels to supply toy products. United States distributors have found that outsourcing has come at a high cost. The toy distributor that puts its name on a toy is ultimately responsible for the safety of that toy even if the toy is made elsewhere. Consumer confidence in the safety of toys on the shelves of retailers is at an all-time low. What’s the solution to the problem? A growing number of major toy distributors are finding the answer in their own backyard. An increasing number of major toy distributors are turning to the “once dead” small United States toy manufacturer as a “new source” of supply. Vermont Wooden Toys, a U.S. manufacturer, has seen high demand for its wooden toys. Why? Boutique toy manufacturers are known for producing safe, high-quality toys. Their problems have included high costs, limited production volume, and managing marketing channels. These disadvantages are diminishing as U.S. toy consumers favor simple, low-tech toys. As the toy industry evolves, U.S. toy distributors are betting that “Made in America” will regain appeal. Questions: 1. What percentage of U.S. toys are produced by foreign manufacturers? Why might this be a problem? 2. What two consumer concerns drove several massive toy recalls?

Paper For Above instruction

The landscape of the toy industry, particularly in the United States, demonstrates the intricate dynamics of manufacturing sources, consumer perceptions, safety standards, and marketing strategies. With over 80 percent of toys sold in the U.S. being imported from foreign manufacturers, the industry faces significant challenges related to product safety, quality assurance, and consumer trust. This paper explores how these factors influence industry practices, the repercussions of safety concerns leading to major recalls, and how domestic manufacturers are capitalizing on the “Made in America” branding to rejuvenate consumer confidence and sales.

Manufacturing Distribution and Its Critics

The heavy reliance on foreign manufacturing sources for toys in the U.S. has been driven largely by cost advantages. Foreign manufacturers, especially in countries like China, have historically provided cheaper labor, materials, and scalability, enabling companies to produce a large volume of inexpensive toys. This economic benefit has been attractive to retailers seeking higher profit margins and to consumers demanding affordable products (Bradsher, 2007). However, the increased dependency on foreign sources introduces risks, notably in quality control and safety standards. Manufacturing oversight becomes complex when the supply chain extends over multiple countries, often resulting in inconsistent quality or substandard safety measures. This issue is exemplified by the series of toy recalls that have shaken consumer confidence.

Safety Concerns and Their Impact

The two primary consumer concerns that drove recent massive toy recalls are the presence of lead paint and choking hazards from small parts. Lead-based paint in toys, used historically to give a shiny, attractive appearance, was found to contain dangerous levels of lead, which can cause neurological damage, especially in children under six (U.S. Consumer Product Safety Commission, 2007). Additionally, small detachable parts, such as eyes, buttons, or tiny pieces, pose choking hazards, significantly threatening infant and toddler safety. The widespread nature of these recalls eroded trust in the safety standards of imported toys and called into question the efficacy of oversight mechanisms within the international supply chain.

Domestic Manufacturing as a Solution

In response to safety scandals and declining consumer confidence, many U.S. toy distributors are turning to domestic manufacturers as a strategic solution. Historically, small American toy companies like Vermont Wooden Toys have marketed themselves on producing high-quality, safe, and environmentally friendly toys. These boutique manufacturers face challenges such as higher costs and limited capacity compared to foreign counterparts. However, recent shifts in consumer preferences toward simple, low-tech toys, perceived as safer and more trustworthy, have elevated domestic firms. Distributors see an opportunity to reposition “Made in America” as a mark of safety and quality, aiming to restore consumer trust and comply with stricter safety regulations (Klein & Ray, 2008).

Furthermore, domestic manufacturing can significantly reduce lead times, logistical complexities, and the risk of counterfeit or substandard imports. It also allows for better quality control, adherence to safety standards, and assurance of regulatory compliance. By supporting domestic producers, toy distributors can develop more robust, transparent, and responsive supply chains, aligning with consumer demand for safer products. The resurgence of small, U.S.-based firms is also driven by a moral and political desire to support local economies and reduce dependence on questionable foreign sources.

In conclusion, while foreign manufacturing will likely continue to play a significant role in the toy industry due to cost advantages, increasing safety concerns and waning international trust are compelling industries to consider domestic sources seriously. Brand reputation, quality assurance, and consumer confidence are increasingly tied to the safety and origin of products. U.S. toy companies turning to domestic production exemplify how strategic shifts can leverage safety and ethical considerations as market differentiators.

References

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