BUS 360 Lecture Notes - Lecture 12: Panel Data, Marketing Mix, List Price
Document Summary
Innovation process by which ideas are transformed into new offerings **only 3% new products succeed** Reasons firms create new products: changing customer needs, market saturation, managing risk through diversity, fashion cycles, improving business relationships. Less sophisticated design, priced higher pave the way for followers. Innovators buyers who want to be the 1st on the block to have new p - enjoy taking risks, highly knowledgeable, well-informed. Early adopters generally don"t like to take much risk but will wait and purchase the product after careful review. Enjoy novelty, opinion leaders, spreads the word, crucial for bringing other 3 buyer categories into market. Early majority (if group never becomes large enough, p/s fails) Don"t like to take much risk, wait, competitors reached its peak. Late majority last group of buyers to enter new product market, Product achieved full market potential, sales level off. Laggards avoid change and rely on traditional products until no longer available, may never adopt certain p/s.
