Chp 2: Innovation Management: Market Launch

Question 1

Key aspects of Market Launch

Answer 1

1. Premarketing
2. Pricing
3. Adoption
4. Diffusion
5. Market launch

Question 2

What is Premarketing?

Answer 2

refers to marketing activities conducted prior to the actual availability of
the product on the market.

Question 3

What is Product Preannouncement?

Answer 3

A company‘s product-related communication activitiesthat temporally precede the market launch and are aimed at the primary audience of the
customer

Question 4

Vaporware

Answer 4

conscious deception of competitors through false signals:
E.g. announcement of a premature launch date in order to prevent competitors fromlaunching an own substitute product

Question 5

Risks, benefits, and timing of
Product Preannouncements

Answer 5

read slide 255

Question 6

Cognitive Dissonance

Answer 6

presence of non-fitting relations among cognitions (i.e., any knowledge,
opinion, or belief about the environment, oneself, or one‘s behavior)

Question 7

Approaches to reduce postpurchase dissonance

Answer 7

1. Establishment of a market for used products e.g. Apple Refurbished
2. Modular/internal product upgrades
   e.g., New Xbox Experience by Microsoft,
   Tesla example on slide 24
3. Reduction of switching costs
   e.g., Best Buy Buy Back Program

Question 8

Fundamentals Price strategies

Answer 8

1. Price skimming: Introducing a product at high price at first, then gradually lowering the price over time
2. Penetration pricing: Introducing a product at a very low price

Question 9

What are the approaches to pricing

Answer 9

1. demand oriented:
    Expert interviews
    Experiments
    Market Data
    Direct Customer Survey
    Utility-oriented Pricing applying Conjoint
   Analysis
2. cost oriented:  Cost-Plus Pricing
    Target Costing: The goal of Target Costing is setting the highest allowable production costsso that the firm can still earn the targeted profit in the market phase
3. competition oriented:  Customer Survey Market Observation

Question 10

What is Adoption

Answer 10

Adoption is the decision of an individual to acquire an innovation (i.e., a new
product)

Question 11

2 Roles of Motivation for New Product Adoption

Answer 11

1. Promotion-focused motives revolve around a desire for growth and development and arerelated to consumers’ hopes and aspirations
2. Prevention-focused motives revolve around a desire for safety and security and are related toconsumers’ sense of duties and obligations.

Question 12

Diffusion

Answer 12

“Diffusion is the spread of an innovation in the market over time