Podcast
Questions and Answers
What is the main objective of market testing in product development?
What is the main objective of market testing in product development?
- To test products in an actual market setting. (correct)
- To finalize the product packaging and branding.
- To conduct prototype testing within the company.
- To determine the psychological performance of the product.
What is the primary focus of the commercialization stage?
What is the primary focus of the commercialization stage?
- Conducting consumer testing and feedback collection.
- Finalizing the product's functional design.
- Rapidly building up production for the new product. (correct)
- Developing prototypes for further testing.
Which of the following stages occurs immediately before market testing?
Which of the following stages occurs immediately before market testing?
- Functional Testing
- Product Launch
- Prototype Lab Testing
- Consumer Testing (correct)
What consideration is NOT part of the decision-making in the commercialization stage?
What consideration is NOT part of the decision-making in the commercialization stage?
What is the first step in the product development process as described?
What is the first step in the product development process as described?
What is the primary goal of idea screening in the innovation process?
What is the primary goal of idea screening in the innovation process?
During concept development and testing, what does the 'product concept' represent?
During concept development and testing, what does the 'product concept' represent?
What is the next step after concept testing if the concept qualifies?
What is the next step after concept testing if the concept qualifies?
Which group is NOT mentioned as a source for idea generation?
Which group is NOT mentioned as a source for idea generation?
What is evaluated during the business analysis phase?
What is evaluated during the business analysis phase?
Which component is specifically related to consumer perception?
Which component is specifically related to consumer perception?
What role do employees play in idea generation?
What role do employees play in idea generation?
Which stage involves providing detailed information to R&D to create a physical product?
Which stage involves providing detailed information to R&D to create a physical product?
What is a key reason for the availability of many varieties or brands serving the same purpose?
What is a key reason for the availability of many varieties or brands serving the same purpose?
Which stage in the new product development process involves evaluating ideas to discard those that do not fit the market?
Which stage in the new product development process involves evaluating ideas to discard those that do not fit the market?
How does globalization impact the availability of products?
How does globalization impact the availability of products?
What is one effect of technological advancements in product development?
What is one effect of technological advancements in product development?
Which option best describes the purpose of conducting surveys during product development?
Which option best describes the purpose of conducting surveys during product development?
In the stages of new product development, which step follows business analysis?
In the stages of new product development, which step follows business analysis?
What consumer aspect is primarily affected by product differentiation in the market?
What consumer aspect is primarily affected by product differentiation in the market?
Which of the following is NOT a stage in the new product development process?
Which of the following is NOT a stage in the new product development process?
What is one way to communicate a concept effectively?
What is one way to communicate a concept effectively?
What should be avoided when measuring customer response?
What should be avoided when measuring customer response?
Which element is NOT part of the formula for expected sales quantity (Q)?
Which element is NOT part of the formula for expected sales quantity (Q)?
If there are 10,000 potential customers and 60% are aware of the product, how many customers are aware?
If there are 10,000 potential customers and 60% are aware of the product, how many customers are aware?
How does an increase in the number of potential customers impact the expected quantity of sales?
How does an increase in the number of potential customers impact the expected quantity of sales?
What is the role of Cd in the sales quantity formula?
What is the role of Cd in the sales quantity formula?
In a scenario where only 50% of the customers are aware of the product, how would it affect the expected sales quantity?
In a scenario where only 50% of the customers are aware of the product, how would it affect the expected sales quantity?
What does the variable P in the sales formula represent?
What does the variable P in the sales formula represent?
What is the primary purpose of concept testing?
What is the primary purpose of concept testing?
Which factor does not typically affect sample size in concept testing?
Which factor does not typically affect sample size in concept testing?
What is a disadvantage of using postal mail for surveys?
What is a disadvantage of using postal mail for surveys?
Which of the following is essential for a successful focus group?
Which of the following is essential for a successful focus group?
What is the first step in the concept testing process?
What is the first step in the concept testing process?
Which method of documenting customer interactions captures both audio and video?
Which method of documenting customer interactions captures both audio and video?
What is one major advantage of using the internet for surveys?
What is one major advantage of using the internet for surveys?
In the context of concept testing, what does 'reflect on the results and the process' mean?
In the context of concept testing, what does 'reflect on the results and the process' mean?
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Study Notes
Product Design and Development
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Products and services are available due to consumer demand, innovation, and technological advancements.
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The smartphone market showcases the influence of consumer preferences, technological innovations, and global competition on product variety.
Stages in New Product Development Process
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The new product development process minimizes new product failure risk through a structured approach consisting of eight stages:
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Idea Generation: Gathering ideas from various sources, such as customers, employees, competitors, and marketing channels.
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Idea Screening: Filtering out low-potential ideas based on feasibility and potential.
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Concept Development & Testing: Refining ideas into viable product concepts and testing them to validate their appeal.
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Marketing Strategy Development: Creating a strategy for introducing the product to the market.
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Business Analysis: Evaluating the financial feasibility and business attractiveness of the product.
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Product Development: Transforming the concept into a physical product through prototyping, lab testing, and consumer testing.
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Market Testing: Testing the product in a real market setting to assess market size and learn about consumer and dealer behavior.
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Commercialization: Launching the product in the market and scaling up its production.
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Focus Groups
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Focus groups involve guided group discussions to gather insights and resolve conflicting opinions.
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Effective focus groups require a skilled moderator and involve planning, scheduling, and budgeting.
Concept Testing Process
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The concept testing process involves seven steps:
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Define the Purpose: Identify the goals of the concept testing, such as assessing alternative concepts, improving the concept, or estimating sales.
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Choose a Survey Population and Sample Size: Determine the target audience and the number of participants based on factors like the stage of development, cost, and budget.
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Choose a Survey Format: Select the survey format that best suits the objectives, such as face-to-face, telephone, postal mail, or online surveys.
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Communicate the Concept: Present the product concept effectively using methods like verbal descriptions, sketches, photos, storyboards, videos, simulations, or physical models.
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Measure Customer Response: Gather data on customer preferences, purchase intent, and reasons for their responses.
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Interpret the Results: Analyze the data to draw conclusions about the concept's appeal and potential for success.
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Reflect on the Results and the Process: Evaluate the effectiveness of the concept testing process and make any necessary adjustments for future development.
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Activity 3
- The expected quantity of sales is calculated using the formula Q = NxAxP.
- The formula involves the number of potential customers (N), the fraction of aware customers (A), and the probability of purchase (P).
- The probability of purchase is calculated using the percentages indicating definite purchase (Cd) and probable purchase (Cp).
- The expected sales quantity can be adjusted based on changes in the number of potential customers or the awareness level.
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