BU352 Lecture Notes - Lecture 8: Reverse Engineering, Observability, Starbucks
Document Summary
Why do firms create new products: new product doesn"t necessarily mean that the product has never existed before, it refers to the degree of newness of a product on a continuum from new to world to. Changing customer needs: sometimes a company can identify problems and develop products that customers never knew they needed, ex. Cleaning the underside of the car in a car wash. Fashion cycles industries that rely on fashion trends and have short product cycles, most sales come from new products: gamers demand a new game once they have beaten their game. Improving business relationships: new products do not always target end consumers; sometimes they function to improve relationships with suppliers. Innovators: those buyers who want to be the first on the block to have the new product or service: these buyers enjoy taking risks, are highly knowledgeable, and are not price sensitive, ex.
