Term
| Term: Process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow. |
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Definition
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Term
| Term: Process in which innovation speeds throughout a market group over time. |
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Term
| What are 5 different reasons firms create new products? |
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Definition
1. Changing customer needs
2. Market saturation
3. Managing risk through diversity
4. Fashion cycles
5. Improving business relationships |
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Term
| Term: New products that create new markets |
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Definition
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Term
| Term: First to create the market/product category. |
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Term
| What are the groups to move through the diffusion of innovation? |
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Definition
1. Innovators
2. Early adopters
3. Early majority
4. Late majority
5. Laggards |
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Term
| Term: Buyers who want to be the first on the block to have a new product/service. |
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Term
| Term: Buyers that don't take as much risk as innovators; wait for careful review |
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Term
| Term: New products don't become popular until this group purchases (34%) |
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Definition
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Term
| Term: Market has reached full potential once this group buys; sales tend to level off/decrease when these purchase |
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Term
| Term: Group of consumers that avoid change and rely on traditional products until they are no longer available (16%) |
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Term
| What are the four conditions for quicker diffusion? |
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Definition
-Relative advantage
-Compatibility
-Observability
-Complexity and trialability |
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Term
| What are the 6 steps in developing new products? |
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Definition
1. Idea generation
2. Concept testing
3. Product development
4. Market testing
5. Product launch
6. Evaluation of results |
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Term
| How can ideas be generated? |
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Definition
-Internal R&D
-Consortia R&D
-Licensing
-Brainstorming
-Outsourcing
-Competitor's products
-Customer input |
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Term
| Term: Medical study that tests the safety/effectiveness of a drug/treatment |
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Term
| Term: Taking apart a product, analyzing it, and creating a new product that does not infringe any patents |
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Term
| Term: Brief written descriptions of a product, its technology, working principles, forms, and what customer needs it would satisfy |
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Term
| Term: Process in which a concept statement is presented to potential buyers/users to obtain their reaction |
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Term
| Term: Product design; process of balancing various engineering, marketing, manufacturing, and economic considerations to develop a product's form and features |
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Term
| Term: First physical form or service description of a new product |
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Term
| Term: Firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended |
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Term
| Term: Uses potential customers to examine prototype in a "real use" setting to determine its fuctionality, performance, potential problems, and other issues |
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Term
| Term: Determines how many customers will try and continue to use a product/service using a sample |
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Term
| Term: Introduces offering to a limited geographic area prior to a national launch |
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Term
| Term: Promotions to wholesalers/retailers to get them to purchase the new product |
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Term
| Term: Limited-duration, lower-than-normal prices used as an incentive to try |
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Definition
| Introductory price promotions |
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Term
| Term: Temporary concentration of manufacturers that provide retailers with a chance to see what's new and available |
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Term
| Term: Manufacturer's Suggested Retail Price |
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Term
| Term: Fee paid simply to get new products into stores or to gain more/better shelf space |
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Term
| Term: Defines stages that products move through during life in the marketplace |
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Term
| What are the stages of the product life cycle? |
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Definition
1. Introduction stage
2. Growth stage
3. Maturity stage
4. Decline stage |
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Term
| Term: Life cycle stage of a freshly-launched product |
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Definition
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Term
| Term: Life cycle stage in which product gains acceptance, demand and sales increase, and more competitors emerge |
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Term
| Term: Life cycle stage where industry sales reach their peak and firms try to enhance products |
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Definition
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Term
| Term: Product life cycle stage when enhancing the product fails, so product declines and eventually exits market |
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Term
| True/False: Laggards may never purchase a product. |
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Term
| Term: Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed |
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Term
| Term: Human/mechanical activities firms undertake to help satisfy their customers' needs and wants |
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Term
| What are the four characteristics that make a service distinguishable from a product? |
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Definition
-Intangible
-Inseparable
-Variability
-Perishable |
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Term
| What are the four types of service gaps? |
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Definition
-Knowledge gap
-Standards gap
-Delivery gap
-Communication gap |
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Term
| Term: When the delivery of service fails to meet expectations |
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Definition
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Term
| Term: Difference between customer's expectations and the firm's perception of those expectations |
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| Term: Difference between firm's perception of customers' expectations and the standards it sets |
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| Term: Difference between firm's service standards and the actual service provided |
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Definition
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Term
| Term: Difference between actual service provided and the service the firm promised |
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Term
| Term: Customer's perceptions on how well a service meets/exceeds their expectations |
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Term
| Term: Collects customers' inputs and integrates them into managerial decisions |
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Term
| Term: Area between customers' expectations regarding their desired service and the minimum level of acceptable service |
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Term
| Term: Allowing employees to make decisions about how service gets provided to customers |
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Definition
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Term
| What are the three steps to service recovery? |
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Definition
1. Listen to the customer
2. Find a fair solution
3. Resolve the problem quickly |
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Term
| Term: Customer's perception of the benefits received compared with the costs |
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Definition
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Term
| Term: Perceived fairness of the process used to resolve complaints |
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Term
| What are the five service quality dimensions? |
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Definition
-Reliability
-Responsiveness
-Assurance
-Tangibles
-Empathy |
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