Chapter Ten Flashcards
Consumer Products:
- Convenience Products
- Shopping Products
- Specialty Products
- Unsought Products
Convenience Products:
Purchased quickly with little effort
- example: staples, impulse products, and emergency products
Shopping Products:
Product comparisons are made
Consumer compares several alternatives on criteria such as price, quality, or style
- example: homogeneous shopping products and heterogeneous shopping products
Specialty Products:
Items that a consumer makes a special effort to search out and buy
No close substitutes
Unsought Products:
Items that the consumer either does not know about or knows about but doesn’t initially want
New unsought products and regular unsought products
Examples of Convenience Products:
Toothpaste, cake mix, hand soap, ATM cash withdrawals
Examples of Shopping Products:
Cameras, TV’s, briefcases, airline tickets
Examples of Specialty Products:
Rolls-Royce cars, Rolex watches, heart surgery
Examples of Unsought Products:
Burial insurance, thesaurus
7 Stages in the New-Product process leading to success:
- New-product strategy development
- Idea generation
- Screening and evaluation
- Business analysis
- Development
- Market testing
- Commercialization
Stage 2 of the New-Product Process: Idea generation
Develops a pool of concepts as candidates for new products
- Open innovation
- Customer & Supplier Suggestions
- Employee and Co-Worker Suggestions
- Research and Development Laboratories
- Competitive Products
- Universities, Inventors, and Small Tech Firms
Stage 3 of the New- Product Process: Screening and Evaluation
Evaluates the new product ideas and eliminates the ones that warrant no further effort
- Internal Approach
- Customer Experience Management (CEM) - External Approach
- Concept Tests
Stage 4 of the New- Product Process: Business Analysis
Specifies the features of the product and the marketing strategy needed to bring it to the market and make financial projections
- Prototype
- Business Fit
- Capacity Management
- Off-Peak Pricing
