lecture 7 and class notes: creativity Flashcards
importance of creativity
Advertising can lead to creativity in order to stand out, shows the benefit
Important for new product development → new products can either creative a new product category or modify an existing category
Important in many different industries like entertainment, fashion, electronics, food, financial products
new product category
Ex: cirque du soleil. Came up with this new sub category of circus shows that involved people and not animals
Ex: wii reinvented the category of video games
improve existing prodict category
Adding a new feature
Ex: toning your legs as you walk
Ex: reebok, have their own toning brands
Coming up with new creative ideas helps increase profits → reebok and sketches have had increases in sales bc they can launch new creative products
Ex: self opening tent, flying alarm clock
How can we increase creativity
: interest in product, knowledge about product, moderate time pressure
interest in product
Research study→ looked at 200 product designers (expected to come up with creativity products ) in video game, fashion and cosmetics
Asked to provide their own rating of their own interest in the product (1-7 scale)
Collect data anonymously, responses are anonymous , measured peoples interest over a year every week (likely to get better and accurate responses )
Correlated self interest and annual performance review (1-100 scale)–> positive correlation between peoples self interest in the product category and how they did in the job
This study suggests that fostering creativity can be closely tied to personal engagement and passion for the product.
knowledge in product
Knowledge about the customer, customer needs and how does my product satisfy customer needs
If we look at how new products are developed , the team meets and looks at market research (info about the target market, customer needs, lifestyle, attribute importance)
If design teams have this info, they can come up with prootypes
Knowledge has to incubate in your mind before it can manifest itself in the form of creative ideas → take knowledge in and let it simmer for some time
Incubation period→ did the market research, let it simmer and then met after 3 days, gave themselves 3 days to come up with new ideas
Incubation period: sleep over it→ brainstorming sessions are 2-3 daus. Whe n you take in knowledge, your conscious mind will take in those ideas but creativity is largely driven by the unconscious mind, when you are sleeping (build in an overnight session, sleep over the knowledge or do something else so your unconscious mind can come up with new ideas and will come to the conscious mind)
moderate time pressure
Research study→ done with engineering design sgudents , had to desihm a car jack for senior citizens . first steo was that stdenyts were given info about senior citizens and the market,
Asked to come back with a design for a new car jack
50 students were given 2 days
50 students were given 4 days
At the end of the 2 days and the 4 days, submissions were rated on quality by experience product designers
Average score in the 2 day group was 85.6
Average score in the 4 day group was 74.2
If you give people too much time, not helpful → need some kind of pressure
How much time is moderate → depends on the complexity of the product, size of team (increases, need more time)
2 day minimum → at least one overnight to allow unconscious mind to work without interference
How can we successfully launch creative new products
improve attitudes, reduce attitude behaviour gap
important attributes for new products
price, switching costs, relative advantages innivatness
price, switching costs, relative advantages innivatness
more expensive = negative
more siethcig costs = negative
more relative advantage = positive
use more innovateness= positive
How can we improve attitudes ?
Highlight positives for consumers
Advertising → can illustrate the benefit visually
Product trial→ give customers a chance to use the product and experience the benefits or can launch advertising campaigns of people using the product
Minimize negatives to consumers
Price → Penetration pricing for new products m launch the prodicts at a new price , gain market share and inrcease the price later. Increases initial adaption and once the product has a good market share , add value , reduces costs for the manufacturers through economies of scale
Complexity→ minimize complexity. Apple did this well, made the smartphone simple with touch screen
Attitude behaviour gap
Have to reduce this (gap between what people think about a product vs actually buying it)
Ex: attitude toward mac book pro on a scale, we might say we like it but its possible that customers that give high ratings may not actually go and buy products right away
Gao between positive attitude and lack of action of purchasing
Why is there a gap? Budget , purchase cycle (not ready to buy yet, maybe just bought a new computer), competition (like the macbook but also like another brand equally)
What can managers do to reduce this gap
reminder, Implementation method and Behaviour consistency
impkemetatio method
Research study→ looked ay the effect of fear on ppls behavior. Two brochures to inform students about the flu. One version said that the flu is very bad and vaccinate yourself, second brochure said that its annoying flu but tehre is a vaccine (low fear)
Expected that high fear would work better than low fear so they measured people intention to vaccinate after reading the brochure and followed up on the students and see who actually got vaccinated
Found that the high fear did work better in terms of intention→ said they were going to get vaccinated , but didnt actually improve actual rates of vaccination
High fear advertising can increase peoples intentions but not actually improve actual behavior
Did the study again and made a change → gave a campus map to the health centre marked. Made a big difference → implementation method
We see this in ikea, have shopping bags always available , helps you actually pick something up
By providing a concrete path to implementation, such as marking the location on a map, the researchers were able to bridge the gap between intention and actual behavior.
behaviour consistency
Influence behaviour through consistency
Take a small step towards the behaviour you want to promote
Should work because of the consistency norm→ get someone do a small action, later they are more likely to do a bigger action
New products drive profitability
Customers idwal points for attributes go uo over time due to competing firms offering better products/ features … this leads to lower choice for current products
Customers become used to current products performance over time… this leads to lower surprise /satsifcation for current product
venn diagram
Successful New Products Are at the Intersection of 3 Circles: customer need (unmet, often hidden), tech, low price
get all three circles right
Teams
Different backgrounds
Composition of teams
Look at twitter accounts of members
Brainstorming within teams :two stages of brainstorming
teams with diversity help, the way the team interacts with eachother
Divergent thinking → crazy weird ideas
Convergent thinking→ constraints (time, money, tech)
Sandwich exercise
Is our idea feasible
Divergent thinking is more difficult than convergent thinking
Divergent thibkubg is inhibbted by: education system in schools, groipthink in teams that values one group answer
New product teams, teams structure forces you to agree with eachother, groups want to agree with each other
Divergent can be facilitate by: playful work environment, encouraging risky project, creating diverse teams
Incentivize, most new products fail, if you reward success people will play it safe fro radical innovations, you have to incentivize ( be rewarded based on the creativity not the end result of how successful it is)
New product development process
idea generation and idea screening starting with customer need
Concept development and testing
Concept development: sepcficy attributes for the new product
Have to create a detailed list of attrirbutes, what will be the features, how to get consumers to use it→ be sepcfiic about the new products attributes
At the general level, proidcts have similar attributes
We also have to create a prototype
Have to concept test with the product type
Concept testing at trade shows
Interest from manufacturer/ distributors ay trade shows
Response of testers/ target consumers at trade shows
Concept testing in focus groups
Concept testing in focus groups is a method used to evaluate new product ideas by gathering qualitative feedback from potential users. Focus groups are typically conducted in small sessions, where participants discuss and provide reactions to a product concept, allowing researchers to gauge consumer attitudes and identify areas for improvement
Frequency of positive vs negative comments
Attitude towards the product on 9 point scale( 1/dislike a …. 9/like a lot)
Forecasting new product sales
When innovation is incremental or an extension of comparable with other innovations- forecast by analogy
When innovation is radical, then use: size of potential market times likely market share
( size of potential market) x (likely market share)
ex: first electric/driverless cars or first augmented reality display
Forecast by analogy is more effective for incremental innovations where historical data on similar products is available.
The market potential method works better for radical innovations where the product is new, and the market needs to be estimated from scratch
Size of potential marektm
Calculate the number of people in innobvator target market
Forecasting sales before launch→ when innovation is radical
What about forecasted sales after launch?
Once initial sales data of the new product is available
Where is sales on the product life cycle?
Actual sales figures usually follow the product life cycle (bell shaped curve) can compare your sales with other product curves
Convert them into likely market shares
Survey with 100 respondens from target market segment for this proidct
Read product description/ test the product
5= def buy 1 = def wont
10 said definition
no w make assumptions → purchasing intent to making actually purchases
Divergent thinking is inhibited by
Education system in schools
Groupthink in teams that values one group answer
Divergent thinking can be facilitated by
Playful Work Environment
Encouraging Risky Projects
Creating Diverse Teams
concept development
Specify attributes of the new product
Create a prototype
When innovation is incremental or an extension of
“comparable” with other innovations -
forcast by analogy
Forecasting by analogy is a method used to predict future trends or outcomes based on similarities to past innovations or events.
When innovation is radical, “nothing like it,” one-of-a kind,
then use
(Size of potential market) x (Likely market share)
What About Forecasted Sales After Launch?
Once initial sales data of the new product is available
Where is sales on the product life cycle?
Forecasted Sales After Launch
