Chap 11 Flashcards
new product
a product new to the world, the market, the producer, the sellers, or some combination of these
what are the 6 categories
- new to the world
- new product line
- addition to existing a product line
- improvement or revision of existing products
- repositioned products
- lower priced products
new to the world other names?
discontinuous innovation
new to the world product
create a new market
- smallest categories
new product line
- products the firms have not previously offered, allow it to enter an established market
addition to existing product lines
new products supplement a firm’s established line
improvements or revision of existing products
ex: Apple and their iPhone launch every year
repositioned products
existing product targeted a new market, goal fix the declining sales
lower-priced products
a product that provides performance similar to competing brands at a lower price: google chrome vs Apple Mac
what are the 5 product characteristic can be used to a product and explain the rate of acceptance
- complexity
- compatibility
- relative advantage
- observability
- trialability
complexity
a degree of difficulty involved in understanding and using a new product
compatibility
the degree to which the new product is consistent with the existing value of past experience product
relative advantage
the degree to which a product is perceived as superior to existing substitute
ex: iPod vs CD player
observability
the degree to which the benefits or other results of using the product can be observed by others
ex: fashion items, cars
trialability
the degree to which a product can be tried on a limited basis
ex: easier to try new cereals than computer
