12 Questions
What is the primary purpose of a product or service?
To satisfy consumer needs and wants
What is the primary basis for product classification?
Intended customer type (consumer or business)
What is an example of a business classification?
Installation
What is an element of product differentiation?
Product quality
What type of innovation involves significant product changes?
Dynamically continuous innovation
What is the correct order of the product development process?
Idea generation, idea screening, analysis, development, testing, commercialization
Why is it important to follow the correct order of the product development process?
To ensure resources are not wasted on a poor-performing product
What is the primary benefit of a product's augmentation?
To provide additional benefits to consumers
Which type of product classification is most likely to be influenced by the product's intended use?
Business
What is the primary goal of product differentiation?
To create a unique brand identity
What is the primary characteristic of discontinuous innovation?
Revolutionary new ideas
What is the primary consequence of not following the correct order of the product development process?
Wasted resources on a poor-performing product
Study Notes
Product Definition and Classifications
- A product or service is an offering by an organization to satisfy consumer needs and wants, comprising the benefit, core product, and augmentations.
- Products are classified as either consumer products or business products, based on their intended users.
Consumer Product Classifications
- Convenience products: frequently purchased, easily accessible, and affordable.
- Shopping products: comparison-shopped, considered purchases, and often evaluated on factors like quality, price, and style.
- Specialty products: unique, high-value, and often sought out by consumers.
- Unsought products: unknown or unthought of by consumers, often requiring education or awareness.
Business Product Classifications
- Installations: capital goods, such as buildings and heavy machinery.
- Accessories: non-capital goods that support or maintain installations.
- MROs (Maintenance, Repair, and Operating) supplies: goods used to maintain or support business operations.
- Raw materials: unprocessed goods used in production.
- Processed/component materials: transformed or manufactured goods used in production.
- Business services: intangible offerings, such as consulting and logistics.
Product Differentiation
- Elements of product differentiation: quality, features and benefits, product lines, product mix, branding, and packaging.
Innovation Types
- Discontinuous innovation: revolutionary new ideas, introducing new markets or industries.
- Dynamically continuous innovation: significant product changes, enhancing existing products or creating new ones.
- Continuous innovation: slight modifications, improving existing products.
- Knockoff innovation: copycat versions of products, mimicking existing offerings.
Product Development Process
- Stages of product development: idea generation, idea screening, analysis, development, testing, and commercialization.
- These stages must be completed in order to avoid wasting resources on a poorly performing product.
Product Definition and Classifications
- A product or service is an offering by an organization to satisfy consumer needs and wants, comprising the benefit, core product, and augmentations.
- Products are classified as either consumer products or business products, based on their intended users.
Consumer Product Classifications
- Convenience products: frequently purchased, easily accessible, and affordable.
- Shopping products: comparison-shopped, considered purchases, and often evaluated on factors like quality, price, and style.
- Specialty products: unique, high-value, and often sought out by consumers.
- Unsought products: unknown or unthought of by consumers, often requiring education or awareness.
Business Product Classifications
- Installations: capital goods, such as buildings and heavy machinery.
- Accessories: non-capital goods that support or maintain installations.
- MROs (Maintenance, Repair, and Operating) supplies: goods used to maintain or support business operations.
- Raw materials: unprocessed goods used in production.
- Processed/component materials: transformed or manufactured goods used in production.
- Business services: intangible offerings, such as consulting and logistics.
Product Differentiation
- Elements of product differentiation: quality, features and benefits, product lines, product mix, branding, and packaging.
Innovation Types
- Discontinuous innovation: revolutionary new ideas, introducing new markets or industries.
- Dynamically continuous innovation: significant product changes, enhancing existing products or creating new ones.
- Continuous innovation: slight modifications, improving existing products.
- Knockoff innovation: copycat versions of products, mimicking existing offerings.
Product Development Process
- Stages of product development: idea generation, idea screening, analysis, development, testing, and commercialization.
- These stages must be completed in order to avoid wasting resources on a poorly performing product.
This quiz covers the characteristics and classifications of products, including consumer and business classifications, and the elements of product differentiation.
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