Product Develoment Flashcards
The Majority of New Products Succeed (True or False)
False
- Estimates Vary but Failure Rates of 50% are not Unusual
- Some as high as 96% if failure is defined as not meeting goals
Why do firms Innovate
Avoid Commoditization
What are the top 5 underlying reasons new products fail?
- Unwanted Better Mousetrap(28%)
- “Me Too” product (24%)
- Technical Dog(15%)
- Competitor Reactions (13%)
- Price (13%)
True or False - Many products fail in the “Fuzzy Front End”
and is this good or bad news? Why?
True -
This is good news because if a product is going to fail as 50% + do then it is best to fail in the front end where costs are lower.
What are 5 aspects of First (Successful) Mover Advantage
- Brand Loyalty
- Distribution Barriers (to competition)
- Economies of Scale/Experience Effects
- Premier Positioning
- Standard Setting
Why might it be good to be a 2nd mover
Let the first mover
- Test the market and pay cost of failure
- Take first mover technology and improve it
- Let first guy spend the money on R&D and Marketing
- Let first guy educate the market
List 5 Idiosyncratic Factors to Product Development
- Envisioning the Mass Market
- Managerial Persistence
- Financial Commitment
- Relentless Innovation
- Asset Leverage
At what stage of product development should Marketing be involved?
Man with the braided belt says……
All stages
What are two key aspects to interviewing customers when determining VOC - Voice of Customer
- Think in terms of Benefits (product should deliver) rather than Solutions (Product Design)
- Ask in a way to flesh out usage context
- Ask to get Specific Usable Responses for the engineers
- not just Cleaner dishes but “less spots” or “less grease”
What is the value of Episodic Response in VOC
And
How do you illicit Episodic Response
Episodic Response is more specific to customers needs and wants
- Use Problem Defect Analysis - Architect asks what you don’t like about your house not what you want in a new house.
Why use Problem Defect Analyis
- Avoid top-of-mind responses
2. generate specific and episodic responses
What are the 9 sources of Idea Generation and Understanding Customer Wants in new product Development
- VOC Table
- Problem Defect Analysis
- Consumer Idealized Design
- Lead User Analysis
- Empathetic Design
- Contextual Inquity
- Affinity Diagrams
- Concept Engineering
- Crowd Sourcing
What are 3 forms of consumer analysis
- Rating Scales
- Constant Sum Measures
- Conjoin Analysis
What are the 8 steps in the House of Quality
- Identify Customer Needs
- Define Needs in terms of customer desires & Engineer speak
- Measure perceived importance of each
- Measure Consumer evaluation of relative importance
- identify design attributes (that impact need)
- measure performance vis a vi competitor
- determine extent to which design aspect meets need
- determine interrelationship among design attributes
9 Braid a belt
What are the 7 determinants of diffusion
- Relative Advantage
- Risk of Adoption
- Perceived Complexity
- Compatibility
- Ease of observing benefits
- Likelihood of communicating the benefit
- Divisibility
