mrk4 Flashcards
(25 cards)
What is a key reason why many innovative products fail?
Customers don’t recognize their value
What do companies often fail to consider when launching new products?
How customers make purchasing decisions
What are the two main ways customers collect product information?
Search and inference
What did the example of United Airlines’ aircraft purchase illustrate?
The length and cost of the search process
What challenge did the British shower manufacturer face?
Customers unaware that a better shower was possible
In which situation are customers more likely to use inference?
When the cost of searching is too high
What role does brand play in customer inferences?
It serves as a proxy for product quality
Why is search less likely when customers have significant expertise?
They already know what’s best
How did McDonald’s use parking lot cleanliness as a cue?
To infer kitchen cleanliness
Which of the following is a subconscious factor in customer inference?
Visual cues like color
What is a potential downside of relying on inference for product quality?
Customers may misunderstand the cues
What did customers at McDonald’s infer from the parking lot cleanliness?
The cleanliness of the restaurant
What is a risk for companies that innovate without considering customer perception?
Customers may not understand the innovation
In the ‘Checker Shadow Illusion’ example, what did customers struggle to realize?
That square A and square B were the same color
What is the role of the brand in markets where customers cannot easily search?
To serve as a quality signal
How has the Internet impacted the cost of searching for product information?
It has reduced the cost of searching
When are customers most likely to conduct thorough searches?
When buying a high-cost or important product
Why might customers ignore great new products?
Unfamiliarity with the product’s features
What should companies focus on to increase product success?
Helping customers recognize the product’s value
What does the example of the Aqualisa shower system illustrate?
The importance of customer awareness of improvements
When customers can recognize product greatness, companies are more likely to:
Achieve higher sales
Which factor can diminish the importance of brand in customer decisions?
Easy access to product information
How do customers often make inferences about unobservable product features?
Based on visible cues and brand reputation
What is a consequence when customers shift from search to inference?
They are less likely to recognize product innovations
