chapter 6 Flashcards
(26 cards)
offering
A purposely broad term that captures tangible products and intangible services provided by firms.
innovation
Creation of substantial new value for customers and the firm by creatively changing one or more dimensions of the business.
innovation radar
A framework that captures the many ways a firm can innovate by defining the innovation space by what, who, how, and where aspects.
offering equity
The core value that the performance of the product or service offers the customer.
key potential benefits of offering innovative products
customer, employee, and market expansion
Stage Gate Development Process
The process that most firms rely
on to increase the speed of their offering development and enhance their likelihood of success, while also reducing development costs.
designers curse
A bias that once developers or designers accept some new feature, they perceive its great value – far more than would be assigned the feature by non-users.
endowment effect
overestimate the value of that feature,
jugaad
is a Hindi word referring to an innovative fix or simple work-around. These innovation practices seek creative, quick, unconventional, and frugal solutions to problems.26 The basic intuition is that agile innovation practices vary with each problem stage and product, so requiring the same stage-gate process for all innovative ideas is not feasible.
repositioning strategies
An innovative offering can result from dramatically repositioning an existing offering, such as removing some features or adding others, so that the total offering appeals to a different customer segment with a “new” value proposition
blue ocean strategies
redefine the market space, introduce unexpected features, and fundamentally change the entire value proposition. When successful, they create entirely new market segments that customers might never have asked for or knew they wanted
sustaining technologies
Technologies exploited by market leaders, which produce continuous, incremental improvements over time.
disruptive technologies
Technologies that present highly different price and performance characteristics or value propositions.
adoption lifecycle
A model that describes the timeline and pattern of adoption of a new product, service, or innovation that generally follows a normal distribution.
innovators
are the first to adopt, often before the new offering even is officially launched. They actively seek new technologies in a specific domain, because being the first to have each new introduction is part of how they define their personas
early adopters
see the benefits of the new technology and are willing to adopt it with just a few endorsements.
the early majority
consists of much more pragmatic consumers, who need to be convinced that the new product really works
the late majority, the laggards
the last two groups, also want more evidence, but they are especially hard to persuade. Typically, they become convinced of the value of a new offering only after most of their peers are productively using the new innovation, and it has become virtually unavoidable.
crossing the chasm
Label given to the process of a new firm successfully moving from early adopters to majority groups.
relative advantage
If a customer perceives a higher relative advantage of a product, such that it appears better than an existing offering, it speeds up that product’s diffusion.
compatibility
Customers gauge new products according to how consistent they are with their existing values, uses, and experiences. Greater compatibility with existing product usages speeds product adoption.
complexity
A more complex product, which is more difficult to understand or use, generally suffers from slow diffusion; education can speed up acceptance.
trialibility
More opportunities to try an offering speed up its diffusion. Providing customers with free samples and demo versions or encouraging test drives are tactics that marketers use to enhance trialability
observability
Finally, when an offering’s benefits are highly visible to others, it speeds up new product diffusion, because others readily see the benefits, without the firm needing to expend marketing resources to communicate about them.
