Chapter 20: Introducing New Market Offerings

Question 1

Shortage of ideas.
Fragmented markets.
Social and governmental constraints.
Cost of development.
Capital shortages.
Faster required development time.
Shorter product life cycles.

Answer 1

Factors that Limit New Product Development

Question 2

A cross-functional group charged with developing a specific product or business.

Answer 2

Venture Team

Question 3

Run informal sessions with customers.
Allow time off for technical people to putter on pet projects.
Make customer brainstorming a part of plant tours.
Survey your customers.
Undertake “fly on the wall” research to customers.
Use iterative rounds with customers.
Set up a keyword search to scan trade publications.
Treat trade shows as intelligence missions.
Have employees visit supplier labs.
Set up an idea vault.

Answer 3

Ways to Find Great New Ideas

Question 4

Observe customers using product.
Ask customers about problems with products.
Ask customers about their dream products.
Use a customer advisory board or a brand community of enthusiasts to discuss product.

Answer 4

Drawing Ideas from Customers

Question 5

Attribute Listing
Forced Relationships
Reverse Assumption Analysis
New Contexts

Answer 5

Creativity Techniques

Question 6

A list of the attributes of an object that is then modified.

Answer 6

Attribute Listing

Question 7

Means to list several ideas and to consider how each relates to the others.

Answer 7

Forced Relationships

Question 8

Involves starting with a problem, and then identifying the dimensions, the medium, and the power source.

Answer 8

Morphological Analysis

Question 9

List all the normal assumptions about an entity and then reverse them.

Answer 9

Reverse Assumption Analysis

Question 10

To see what dimensions occur in relationship to the concept for as far as can be mapped.

Answer 10

Mind Mapping

Question 11

Combines two product concepts or ideas to create a new offering.

Answer 11

Lateral Mapping

Question 12

Communicability and Believability
Need Level
Gap Level
Perceived Value
Purchase Intention
User Targets, Purchase Occasions, Purchasing Frequency

Answer 12

Concept Testing

Question 13

Means presenting the product concept to target consumers, physically or symbolically, and getting their reactions.

Answer 13

Concept Testing

Question 14

Are the benefits clear to you and believable?

If the scores are low, the concept must be refined or revised.

Answer 14

Communicability and Believability

Question 15

Do you see this product solving a problem or filling a need for you?
The stronger it is, the higher the expected consumer interest.

Answer 15

Need Level

Question 16

Do other products currently meet this need and satisfy you?

The greater it is, the higher the expected consumer interest.

Answer 16

Gap Level

Question 17

Would you (definitely, probably, probably not, definitely not) buy this product?
Consumers who answered the first three questions positively should answer "Definitely" here.

Answer 17

Purchase Intention

Question 18

Is the price reasonable in relationship to value?

The higher it is, the higher is expected consumer interest.

Answer 18

Perceived Value

Question 19

A method for deriving the utility values that consumers attach to varying levels of a product’s attributes.
Has become one of the most popular concept-development and testing tools.

Answer 19

Conjoint Analysis

Question 20

Prototype Testing

Answer 20

Alpha Testing
Beta Testing
Market Testing

Question 21

Tests the product within the firm to see how it performs in different applications.

Answer 21

Alpha Testing

Question 22

Moved to after refining the prototype to test with consumers.

Answer 22

Beta Testing

Question 23

Timing of Market Entry

Answer 23

First Entry
Parallel Entry
Late Entry

Question 24

Enjoy a first mover advantage.

Answer 24

First Entry Firms

Question 25

Timed with the competitor’s entry.

Answer 25

Parallel Entry

Question 26

Can benefit from seeing how the competition fares.

Answer 26

Late Entry

Question 27

An individual’s decision to become a regular user of a product.

Answer 27

Adoption

Question 28

Stages in the Adoption Process

Answer 28

Awareness
Interest
Evaluation
Trial
Adoption

Question 29

The degree to which an individual is relatively earlier in adopting new ideas than the other members of his social system.

Answer 29

Level of Innovativeness

Question 30

Relative Advantage
Compatibility
Complexity
Divisibility
Communicability

Answer 30

Characteristics of an Innovation

Question 31

The degree to which the innovation appears superior to existing products.

Answer 31

Relative Advantage

Question 32

The degree to which the innovation matches the values and experiences of the individuals.

Answer 32

Compatibility

Question 33

The degree to which the innovation is difficult to understand or use.

Answer 33

Complexity

Question 34

The degree to which the innovation can be tried on a limited basis.

Answer 34

Divisibility

Question 35

The degree to which the benefits of use are observable or describable to others.

Answer 35

Communicability

Question 36

New to the World
Additions
Improvements
Repositioning
Cost Reduction

Answer 36

Categories of New Products