In 2004 Jane and John became the owners of the Coffee Company. At that time they added a larger grill, and significantly improved the appearance of the café. In addition, the menu had been expanded to include many more homemade items. They also kept the grill open through the dinner hour. The business has traditionally sold gourmet coffees and teas, in bulk, and a few teapots and small coffee makers. The cafe also now offers music on Thursday, Friday, and Saturday nights. As a result of these changes, it is now hard to find a day when the cafe isn’t packed for breakfast, lunch, and dinner. Jane recently added a line of homemade pastries, and although the café has always offered fine coffees and teas, she was now considering adding several different lines of specialty, gourmet foods. These products would be branded items packaged in attractive cans, jars, boxes, etc. Her goal was to not only satisfy her customers’ hunger on site, but also to send them home with a high quality food product for later use, be it coffee, tea, pastry, or something else.  Answer the following questions in detailed

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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In 2004 Jane and John became the owners of the Coffee Company. At that time they added a larger grill, and significantly improved the appearance of the café. In addition, the menu had been expanded to include many more homemade items. They also kept the grill open through the dinner hour. The business has traditionally sold gourmet coffees and teas, in bulk, and a few teapots and small coffee makers. The cafe also now offers music on Thursday, Friday, and Saturday nights. As a result of these changes, it is now hard to find a day when the cafe isn’t packed for breakfast, lunch, and dinner. Jane recently added a line of homemade pastries, and although the café has always offered fine coffees and teas, she was now considering adding several different lines of specialty, gourmet foods. These products would be branded items packaged in attractive cans, jars, boxes, etc. Her goal was to not only satisfy her customers’ hunger on site, but also to send them home with a high quality food product for later use, be it coffee, tea, pastry, or something else. 

Answer the following questions in detailed
 

  1. Product planners need to think about products and services on three levels. Each level adds more customer value. How might this relate to the Coffee Company as they seek to expand their product offerings?
  2. The Coffee Company offers consumer products bought by final consumers for personal consumption. These products are classified based upon the ways consumers buy them and how they are marketed. How might the Coffee Company’s products be thus classified?
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