Chapter 7 Flashcards
Idea Generation
The basic idea is created and described
Idea Screening
The costs, profits, and potential sales of the offering are calculated at different price levels. The company also considers how well the offering fits in with its competitive strategy.
Feature Specification
Detailed specifications for the product are developed. Its features and pricing are established.
Development
The actual offering is designed.
Testing
The offering is tested, first in the lab and then with real customers
Launch (Commercialization)
The offering is made available to customers.
Evaluation
The offering is evaluated as to whether it is delivering the appropriate value to consumers, as well as meeting the firm’s business goals.
Product Life Cycle
Introduction (Launch) - Growth (increasing sales and profits) - Maturity (sales begin to level off and competitors have saturated the market.) - Decline (sales drop)
Purpose to screening ideas?
Avoid mistakes early in the development process
Customers who are good at developing new ideas?
lead users
quality function development
process for designing new offerings that begins by specifying a customer’s requirements and then designing a product to meet those needs.
feature specification starts with understanding what?
what consumers want and need.
Different types of testing
Alpha, beta, market
Heavy cost are associated with what type of product life
introduction
Which state is profit stage?
growth
