BU479 Chapter 10: Why great new products fail
Document Summary
Many innovative new products don"t succeed in the marketplace, one common reason: companies don"t focus enough on understanding how customers. More generally, the risk for companies is that they invest in innovations that customers cannot recognize. The role of the brand: the most common cues we use to infer product quality are price and brand. In a business-to-business setting, signaling information about quality is essentially the only role of the brand. in some consumer markets, brands may signal more than just product quality; consumers can also use brands to signal information about themselves. Alternatively, they can form an inference based upon the computer brand. For customers who lack the expertise to evaluate computers" features, relying on the brand may be the only option. We can expect the brand to play a more prominent role for prospective customers than for existing customers. the role of the brand may vary across product features.
