Product Flashcards
Examples of augmented benefits
- Installation
- Warranty
- Delivery
- Credit
What are the three parts of the product offering?
- Core
- Tangible
- Augmented (intangibles)
How to protect & improve augmented benefits using behavioral science
- Get the bad out of the way
- Segment the pleasure, combine the pain
- Finish strong
- Give people rituals
- Build commitment through choice
What is the one number companies need to focus on?
Net Promoter Score: how many people would RECOMMEND you
What are the four phases in the product life cycle?
- Introduction
- Growth
- Maturity
- Decline
In which phase of the product life cycle does supply > demand for the first time?
Maturity
What are the five advantages of innovations that explain their rates of adoption?
- Relative advantage - is it better than what is out there?
- Compatibility - does it work with what is out there?
- Complexity - is it hard to learn?
- Trialability - can I try it for a relatively low cost?
- Observability - how clear and observable are the benefits?
Managing mature products: two ways to increase sales
- New users (ex: gum for smokers)
2. New uses (ex: baking soda)
Look for and invest in re-emerging pockets of demand is a way to succeed in the _______ phase
Decline
In which phase of the product life cycle are product features stressed?
Introduction
In which phase of the product life cycle does the firm realize substantial profits?
Growth
In which phase of the product life cycle do profits begin to decline?
Maturity - sales plateau and profits begin to decline
What are some factors that lead to decline of an industry?
- Innovations
- Shifts in consumer preferences
Advantages of pioneering on the supply side
- Raw material advantages
- Experience effects
- Channel preemption
Advantages of pioneering on the demand side
- Familiarity advantages
- Creates the standard (QWERTY keyboard)
- Choice of perceptual position
