Products Flashcards
(5 cards)
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
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
New Product
New Product = If functionally different from existing products, it can be considered new
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
New-Product Process
New-Product Strategy Development Idea Generation Screening & Evaluation Business Analysis Development Market Testing Commercialization
