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Flashcards in Products Deck (5)
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1

2 User Types

Consumer Goods = bought by final consumer for personal consumption

Business Goods = bought by individuals or organization for further processing or use in business conducting

-Derived Demand = the more consumer products people demand the more business products are needed to create them

2

Consumer Products

Convenience Product = items purchased frequently with minimum shopping effort

Shopping Products = consumer compares several alternatives on criteria such as price, quality or style

Specialty Products = consumer makes special effort to search out and buy

Unsought Products = customer does not know about or knows about but does not currently want

3

New Product

New Product = If functionally different from existing products, it can be considered new

4

Levels of New Products

(Customer Perspective)
1) Continuous Innovation = improvement of an existing product, refreshing the brand, fundamental premise basically same

2) Dynamically Continuous Innovation = Requires a little learning but not from scratch, same function but bigger jump in advance Ex) Electric Toothbrush

3) Discontinuous Innovation = truly revolutionary, almost undoes what was done in the past, have to educate consumers, new learning

(Organization Perspective)
1) Product Line Extension
2) Significant Jump
3) True Innovation

5

New-Product Process

New-Product Strategy Development
Idea Generation
Screening & Evaluation
Business Analysis
Development
Market Testing
Commercialization