Stages of Consumer Adoption
The difference between the core product, actual product, and augmented product.
The core product is the benefits of the product. This can be understood in terms of what the product provides the customer such as the purchase of a car provides transportation. The actual product is what the customer receives, i.e., if you buy a car you get a car. The augmented product is the actual product along with the supporting features such as warranty or free delivery.
The difference between a durable good and a non-durable good and the primary differences between convenience, shopping, and specialty products.
Durable goods are products that provide benefits over a long period of time. In contrast, a nondurable good is a product that only has short term benefit.
The primary difference between convenience, shopping, and specialty products is that convenience products are nondurable goods that are quickly consumed and frequently such as food. Shopping products are goods that people spend time gathering information about. Specialty products are goods that customers will go out of their way to purchases.
Stages of consumer adoption of a new product.
Consumers pass through six stages in the adoption of a new product these stages include: 1. Awareness- learning about the product 2. Interest- development of an understanding of how the product might benefit the consumer 3. Evaluation- the weight of costs vs. benefits of the product 4. Trial- Actual testing of the product by the consumer 5. Adoption- The purchase of the product 6. Confirmation- a reexamination of the product and its benefits and cost.
The categories of adopters.
There are five categories of adopters:
1. Innovators- consumers will to take risks on new products.
2. Early adopters- consumers who buy new products but not quite as soon as innovators, they are typically concerned with social aspects of the product.
3. Early majority- typically middle class consumers who are cautious.
4. Late majority- conservative consumers who wait for the products to be tested by other consumers to avoid risk.
5. Laggards- People who avoid purchasing new products to the point that they are out of date in many instances.
Product factors affecting the rate of adoption of innovations.
Financial ability to purchase new products is a primary factor that affects the rate of adoption of innovators but also the fact that these consumers pride themselves in having the newest products.
Reasons a firm might expand a product line, contracting a product line, and product mix strategy.
Firms may expand a product line when it appears the there are many segments in the primary market. Firms will contract a product line when segmentation may not be profitable or if it is too costly to expand. Many firms have a product mix strategy that provides many related but different products that may appeal to the same consumers. For example, a car dealer might also provide repair, cleaning, and detailing for cars.
The product life cycle concept and stages of the product life cycle.
The product life cycle describes the life of a product beginning at its introduction through its decline in sales. Products have limited lives although some products have very long lives.
The stages of the cycle include:
1. Introduction- this is when the product enters the market but makes no profit
2. Growth stage- this is when the product begins to earn profit and begins moving towards its peak
3. Maturity Stage- This is the stage where sales peak
4. Decline stage- the market shrinks until the product is discontinued due to falling profits.
Product management during the different stages of the product life cycle.
The simplest way to see how the product life cycle is managed is to see it in retrospect. Often the stages of the cycle can be confusing during the products life. However at the end of the cycle it is the stages become more obvious. For example, when we look at a product that has begun to fade into obscurity, (such as Crocs) it is easier to see the stages of the life cycle. This shoe apparel was first introduced in 1999 and during this phase the product was rapidly gaining momentum and was established with the public. By 2005 the original crocs shoes were at their height in the worldwide market. During this growth stage the product had little competition and different colors and slight variations in style were introduced. Beyond 2006 sales began to diminish as the popularity of the item faded. The product today still sells to loyal customers in a niche market but the company has focused its development into new shoe styles to replace this product line. The product is now only marketed strategically in areas where the popularity continues to remain high. In this manner the product continues to make money even as it fades further into obscurity. Today the original product from crocs only slightly resembles the newer products as the company moves into new styles of products.
Brand: characteristics of a good brand name and how firms protect brands.
A brand is the distinctive name, feature, or a product or service that differentiates it from other products. A good brand name will have value with customers. For instance, Starbucks brands itself as a company that is a good corporate citizen. The customers of Starbucks value this brand and are loyal buyers. Brands can be embodied in the name and this must be protected through law such as legal registration of brand or company names.
Functions of packaging and elements of effective package design.
Packaging is an extension or form of branding which differentiates products. Packaging needs to be distinctive but it must also convey the company’s brand and gain the interest of the consumer. Packaging must also comply with legal requirements as well as convey to the consumer any necessary information concerning the product.Photo by Riccardo Annandale on Unsplash