Chapter 11 Flashcards
line extension
Development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs
functional modifications
Changes affecting a product’s versatility, effectiveness, convenience, or safety
Disruptive innovation
Identifies old technologies that can be exploited in new ways or develops new business models to give customers more than they’ve come to expect from current products in a specific market
new-product development process
idea generation, screening, concept testing, business analysis, product development, test marketing, and commercialization.
idea generation
Seeking product ideas that will help organizations to achieve objectives
screening
Choosing the most promising ideas for further review
concept testing
Seeking potential buyers’ responses to a product idea
business analysis
Evaluating the potential contribution of a product idea to the firm’s sales, costs, and profits
Product development
Determining if producing a product is technically feasible and cost effective
test marketing
Introducing a product on a limited basis to measure the extent to which potential customers will actually buy it
commercialization
Deciding on full-scale manufacturing and marketing plans and preparing budgets
Product differentiation
Creating and designing products so that customers perceive them as different from competing products
Quality
Characteristics of a product that allow it to perform as expected in satisfying customer needs
Product positioning
Creating and maintaining a certain concept of a product in customers’ minds
inseparability
Being produced and consumed at the same time
perishability
The inability of unused service capacity to be stored for future use
heterogeneity
Variation in quality
client-based relationships
Interactions that result in satisfied customers who use a service repeatedly over time
Customer contact
The level of interaction between provider and customer needed to deliver the service
Off-peak pricing
The practice of reducing prices of services used during slow periods in order to boost demand
