Product

type of consumer products

• convenience items

• shopping goods

• speciality products

convenience items

• bought on impulse

• not brand loyal

• consumers are sensitive to price changes

• products must be widely available

shopping goods

• consumers will “shop around”

• consumers take their time and will compare the product features

• brand and price became more important in the purchasing decision

• consumers are susceptible to promotion techniques

speciality products

• there are high levels of engagement

• consumers take a long time to process information and make a decision

• people involved in the transaction are very important

• physical environment is very important

• consumers are willing to travel far

The whole product - three levels

• core benefits- what product acc does and how well it does its function

• actual product- includes all of products features, details and benefits that add value, this might includes features to improve quality, convenience, efficiency, style and reliability.

• augmented product- includes everything the business builds around the product, service, advice, after-sales care and features to build loyalty and a long-term rs w the brand.

influences on and value of new product development

• when developing products, a business must consider the ‘whole product” along with three factors - design, function, cost.

• influencing any one of these features can have detrimental impact on the other two, eg- improving the design could reduce functionality of the product, or improving the functionality could increase costs.