MARK Ch.11

Product Complexity: Core Value

• the problem being solved by the product, is made up of both actual product attributes and related, nonphysical aspects

Consumer Products

• Speciality

• Shopping

• Convenience

• Unsought

Specialty products

• are those for which customers express a strong, often subjective, preference

• Products for which consumers will expend considerable effort seeking out the “right” one

• Often have unique characteristics or brand identifiers

• Many luxury goods fall into specialty category

Shopping Products

• those for which consumers will spend time “shopping around”

• Will compare alternatives on objective measures such as price, features

• Often prefer to evaluate differences in quality and style in person when possible

Convenience Products

• those for which the consumer is not willing to expend significant effort to

• Items that are purchased frequently, no need to evaluate alternatives prior to purchase

• Items to be used immediately

• Minimal perceived risk associated with purchas

Unsought Products

• those that consumers either do not normally think of buying or do not know exist

• Not top of mind because they do not address a current unmet need

• Breakthrough innovations may initial fall into unsought category

• Could be unusual or novelty item

Product Mix

• refers to the complete set of all products and services offered by a firm

• We also refer to this as a portfolio of products

• The product mix typically consists of multiple product lines, which are groups of associated item