Chapter 7

Question 1

name the points of product evaluation?

Answer 1

1. idea –> opportunity eval
2. once developed a bit –> concept eval
3. market testing @ launch –> customer eval

multiple points of eval ensure success with less overall expenditure

Question 2

explain the expenditure curve

Answer 2

more high tech products have more front loaded expenditures because of high initial investment

consumer products have back loaded expenditures meaning more spending happens closer to launch

Question 3

how to evaluate if a risk is worth it?

Answer 3

risk payoff matrix

Question 4

ways to reduce risk

Answer 4

1. think about potholes
2. know customer reactions early on
3. use surrogate questions
4. avoid big failures or miss big successes
5. adopt risk strategies
6. eliminate risky projects
7. reduce risk to acceptable level
8. transfer development risk
9. have a contingency plan

Question 5

product concept definition

Answer 5

idea that identifies an opportunity in the market. idea can be turned into a testable statement

Question 6

what aspects make a product concept statement

Answer 6

1. form –> what the product will look like
2. benefit –> what value/advantage it gives
3. technology –> method/tech used to deliver benefit

Question 7

what makes a good product concept statement?

Answer 7

1. clear determinant attributes
2. why is this product different or superior?
3. related to something familiar

Question 8

3 purposes of product concept testing

Answer 8

1. do potential users care
2. will potential users buy
3. what features/benefits will turn the concept into a promising product

Question 9

when interviewing prospective stakeholders, you need to…

Answer 9

1. consider all of them
2. explore their current practices
3. see if they like/support/get the new product
4. see if they have intention to purchase it

Question 10

intention to purchase question

Answer 10

Q: how likely are you to buy a product like this if we made it?

A. definitely, probably, might/might not, probably not, definitely wouldn’t

Question 11

how to measure repeat purchases?

Answer 11

1. customer experience with the product
2. customer satisfaction
3. likelihood to recommend

Possible question to ask: assuming you like it, how often are you to buy it?

Question 12

what are 3 considerations for product concept

Answer 12

1. how to describe the product (marketing focused or straightforward)
2. ask key questions
3. consider all stakeholders and customer segments

Question 13

key questions to ask customers when looking at product concept

Answer 13

1. how do they currently solve the problem
2. what other products do they use
3. how do they feel about the price

Question 14

what is the ATAR model based on?

Answer 14

diffusion of innovation

Question 15

what does ATAR stand for?

Answer 15

Awareness, Trial, Availability, Repeat

Question 16

explain Awareness in ATAR

Answer 16

percentage of the buying population is informed well about the product

Question 17

explain Trial in ATAR

Answer 17

percentage of buying unit that is aware and is likely to purchase

Question 18

explain Availability in ATAR

Answer 18

once they decide to purchase, they can access it easily

Question 19

explain Repeat in ATAR

Answer 19

percentage of buying unit that is likely to repeat purchases

Question 20

what data is the ATAR model based on?

Answer 20

top 2 boxes only (will definetly and most probably)

definite and probable purchases

Question 21

how do you know what is most important in your product?

Answer 21

1. refer to what attributes/features customers find most important
2. identify gaps between what they want and what they currently get
3. overlay with brands –> compare existing gaps in market with existing brands