Psychology 2060 Chapter Notes - Chapter 8: Shampoo, Voice Of The Customer, Observability
12 Dec 2013
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Changing customer needs: firms create value more effectively by satisfying the changing needs of their current and new customers, or by keeping customers from getting bored of current products. Example: dove loyalist can now enjoy not only the bar soap, but deodorants, shampoo, and lotions. Market saturation: the longer a product exists in the market, the more likely it is that the market will become saturated. By introduced new products or product lines several times a year, companies can sustain its growth. Managing risk through diversity: through innovation firms often create a broader portfolio of products, which helps them diversify their risk and enhance firm value better than a single product can. Example: special k not only offers cereals, but now cereal bars and protein shakes. Fashion cycles: the generate sales, apparel fashion designer produce entirely new product selections a few times a year.
