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4MC3 Test 2.docx

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Department
Commerce
Course
COMMERCE 4MC3
Professor
Vilks
Semester
Fall

Description
Chapter 9 Three evaluating factors: Market worth: attractiveness of new product to the targeted customer population? Firm worth: new product project viewed positively by management? Does new product project enhance the firm’s competencies? Competitive insulation: can the products advantage be maintained against competitive retaliation? Concept Testing and Development - Film corporation – short evaluation system ( yes or no after reading) - most firms use concept testing --especially cosumer packaged goods -- invented in industrial firms -- also used in B2B but not called concept testing - not applicable in personal sense cases (taste or smell etc) [warhead sour candy] - not applicable in new art and entertainment – need t test the real experience - not applicable in new technology when users cannot VISUAL it -can’t ask people to predict reactions on something they have never experienced prior - consumers don’t always know what problems they have -prototype concept testing  full service description New Product Concept - producers perception of NP features - consumers perception of NP features - producers estimate of benefits from said features - consumers estimate of benefits from said features - therefore statement about anticipated product features that will yield selected benefits Purposes of Concept Testing - first purpose  identify very poor concepts to be eliminated - second purpose  estimate sales / trial rate of product -- market share/revenue generation - scale of 1-5 definitely buy to definitely would not buy Analyzing Research Results -benefit segmentation  swimsuit example from before - combined with importance ratings to predict preferences in new products - for most complex examples, cluster analysis on computers are used to group respondants into homogenous groups on an importance map. Chapter 10 Screening Procedure -evaluating – picking factors LEVEL ONE -- NPV of discounted stream of earning from the product concept LEVEL TWO -- doesn’t always work so surrogates are used (likelihood of technical success or profitability) LEVEL THREE – more surrogates : sales, margins on sales and marketing/admin costs LEVEL FOUR – more surrogates but with ANSWERS Unusual Factors - culling factors  limitations known from the beginning - sometimes yes or no answers don’t work, need graduating scale with multiple options Scorers or Judges - members of scoring team from for major functions (marketing, tech, operations and finance) - top business units managers should stay out of it (in larger firms) - choosing people with screening experience ( tech people more optimistic, marketing pessimistic) - individuals also bring personal biases Weighting - biggest criticism because they require judgement – how do you gauge how much more certain values are scored - sensitivity testing to prevent this. Profile Sheet - used to graphically represent the new product concept proposal Project NewProd - comprehensive study of NP success & failure – Robert Cooper in 1970s - 100 industrical Canadian firms participated - advocate two level screening models – combo of checklists with scoring models - criteria are must meet and should meet - must meet – strategic alignment, risk return ratio - should meet – strategic importance, product advantage to customer, market attractiveness Analytical Hierarchy Process (AHP) - software such as Expert Choice -product manager makes a hierarchal decision tree -- shows ultimate goal, then primary criteria (and potentially next level criteria too. - manager provides comparison data for each element in tree - used by big three auto companies Chapter 13 Universal design - design of products to be usable by anyone of age or ability - unmet customer needs - Principles : equitable use, flexibility in use, simple and intuitive, perceptible info, tolerance for error, low physical effort, size and space appropriate. Visual Equity - a recognizable look/feel that they use consistently - i.e apple products user friendly,
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