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Product

A good, service, or idea with tangible/intangible attributes offered in exchange for value.

Nondurable goods

Goods that are consumed quickly (e.g., food).

Durable goods

Goods that last over many uses (e.g., appliances).

Services

Intangible activities or benefits.

Ideas

Thoughts leading to action.

Convenience Products

Products that are purchased frequently with minimal effort (e.g., snacks).

Shopping Products

Products that are compared based on price, quality, and style.

Specialty Products

Products that require special effort to purchase (e.g., luxury cars).

Unsought Products

Products that are unknown or unwanted initially (e.g., life insurance).

Derived demand

Demand for business products that is dependent on consumer goods/services.

Components

Products that become part of the final product (e.g., engine).

Support Products

Products that assist in the production and operation of a business.

Intangibility

A characteristic of services where they cannot be seen or touched before purchase.

Inconsistency

A characteristic of services that indicates variability depending on who performs them.

Inseparability

A characteristic of services that indicates consumers cannot separate the provider from the service.

Inventory

The cost associated with idle service capacity.

Product Class

The industry or category of a product (e.g., music industry).

Product Form

Variations in how a product is delivered (e.g., MP3 vs CD).

Product Item

A specific brand or size of a product.

Product Line

A group of closely related product items.

Product Mix

The total range of products offered by a firm.

Continuous Innovation

Innovation that does not require new behavior from consumers.

Dynamically Continuous Innovation

Innovation that requires minor changes in consumer behavior.

Discontinuous Innovation

Innovation that requires significant behavior changes from consumers.

Product Line Extension

A minor improvement or variation of an existing product.

Brand Extension

The use of an existing brand name to introduce a new product.

Radical Innovation

A truly new idea or product.

Groupthink

A situation where a group makes faulty decisions due to pressure to conform.

New Product Vitality Index

A measure of the percentage of sales from new products.

New-Product Strategy Development

The first stage in the new-product development process that defines the role of the product.

Idea Generation

The stage of the new-product development process where ideas are created from different sources.

Screening and Evaluation

The process of analyzing new product ideas to determine their viability.

Business Analysis

The review of a new product's features, financial projections, and market strategy.

Development

The stage where the idea is turned into a prototype and tested.

Market Testing

Testing the product in various market conditions before full launch.

Commercialization

The final stage where full-scale production and marketing of the product occurs.