In these days, the ceaselessly alteration in customers’ favoring, globalization and the innovation of technology have forced organizations to adapt and operate in ways that have never been done before. Customers have more choice because of product variation and multichannel sales, the number of competitors in market is rising due to globalization and technology has been developed to increase productivity and decrease cost. All these changes have created a shift in doing business, the traditional business centric where firms create value and deliver to the customer is being challenged. The firm-centric view regards value creation happening inside the firm, ascribing both firm and customer distinct roles as producer and consumer and focusing on “targeting and managing the ‘right’ customer” (Prahalad & Ramaswamy, 2004, p.6).
With the development of Internet technology, namely the introduction of Web 2.0 has elevated the communication to a new level where people can interact actively and immediately from anywhere in the world. Customer information has always been valuable source of data that firms and corporations strive to acquire, hence, the technology plays as an important medium for the possibility of customer involvement. Moreover, it seems that consumers are willing to contribute their time and energy to co-create with companies. This co-creation means sharing ideas, comments and knowledge. (Prahalad & Ramaswamy, 2004) As a consequence, more firms and corporations are adapting to the new trend and integrate customer effort into their new products and services development.
The involvement of customer in the process of creating value has redefined the traditional way business is conducted to a ‘customer-centric’ view in which fir...
... middle of paper ...
...in virtual customer environments: Implications for product support and customer relationship management. Journal of Interactive Marketing, 21 (2), 42-62.
Nambisan, S., & Baron, R. A. (2009). Virtual Customer Environments: Testing a Model of V oluntary Participation in Value Co-creation Activities. Journal of Product Innovation Management, 26, 388-406.
O’Hern, M. S., & Rindfleisch, A. (2001). Customer co-creation: A typology and research agenda. 84-106.
Prahalad, C. K., & Ramaswamy, V. (2000). Co-opting customer competence. Harvard Business Review, 78(1), 79-87.
Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing Volume, 18 (3), 5- 14. doi: 10.1002/dir.20015
Ramaswamy, V. (2009). Co-creation of value – Towards an expanded paradigm of value creation. Marketing Review St. Gallen, 11-17.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- New product development is the process of introducing a diverse product in the existing, emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments.... [tags: Marketing, New product development]
1953 words (5.6 pages)
- Nowadays, innovation and new product development (NPD) could be considered as an effective strategy for organisations to gain high competitive advantages over its competitor. This strategy has supported companies to satisfy customer requirements individually. Nevertheless, it could also create the challenges as well as the risks which could support or hinder the achievement of companies (Bolumole et al., 2014). This paper will discuss on the challenges of new products and services development. It would also illustrate the challenges and risks associated with developing new products and services.... [tags: Innovation, New product development, Revenue]
1000 words (2.9 pages)
- This essay is about what are the critical success factors in new product development. This will cover what the latitude say about the factors that determine new product success. The five most important success factors will be listed and evaluated. Conclusions will also be given as to what the overarching issue might be for executing the success factors. In today’s markets there are high levels of Competition in most areas. The introduction of new products is commonly viewed as a medium for profitably and growing the businesses (Yenipazarli, 2015).... [tags: Marketing, Marketing research, Product management]
1255 words (3.6 pages)
Nordstrom : A Market Segment, Targeting, Managing The Crm, And Identifying New Product Development Opportunities
- Milestone Three consists of the following: identifying your market segment, targeting that segment, managing the CRM, and identifying new product development opportunities 1. Divide your target market into segments. Address how the markets will be segmented and how the CRM will allow you to retain your segmented markets. Nordstrom segments are broken down into preference segments. There are three segments that Nordstrom has containing the following: homogeneous, diffused, and clustered. Homogeneous is a market with no natural segments.... [tags: Marketing, Mobile phone, New product development]
982 words (2.8 pages)
- New Product Development is the process of designing, creating and bringing a new product to market. It is important that when businesses develop new innovations, they have the following eight stages included in the product development. By setting out the steps involved, and sticking to them, the product development will become a more focused and flexible approach that can be adapted for different types of products and/or services. This also applies to the public sector. Idea Generating – This process will normally start with the product concept.... [tags: Marketing, Strategic management, Idea, Management]
722 words (2.1 pages)
- Software development process is similar to manufacturing a physical product like a car or some other electric appliance. In manufacturing the creation of a product is heavily process driven. You may have a factory where each person has a specific set of tasks they follow. A worker (or robot) may tighten a screw all day long. Then the next task in the process is performed by the next specialist. The workers (and robots) do not deter from the process or make something up "on the fly". The parts churn through the through the process, and the output is a finished product.... [tags: Software development process]
1842 words (5.3 pages)
- The Stages in the Product Development Process To understand the new products work we need to look at the way new products work, we need to look at how they are launched, grow and then die. the life cycle of a product is from when it hits the shops to when it is with drawed from the market and a business decides this when they decide whether or not the product is worth investing in anymore. Marketing managers need to be aware of what their product is worth and decide how long their life span is.... [tags: Papers]
479 words (1.4 pages)
- INTRODUCTION In this essay will explain and evaluate the stages of the international product life cycle and identify locus of operations and target market at each stage. We also will identify the different dimensions of the international product mix with company illustrations and examine the new product development process and the activities involved at each stage in international markets. Finally we will also will examine the degrees of product newness and address international diffusion processes and providing some examples regarding international product life cycle.... [tags: Dimensions, Development Process]
696 words (2 pages)
- My innovative business idea concerns the introduction of a new product in the market which is aimed at reducing the deaths of American soldiers during war together with other innocent civilians. The product shall be marketed under the brand name “Sham-lethal detector”. A lot of research will be put in the development of the device which utilizes the latest technology. In addition, the product will not only be able to detect explosive devices but also landmines that are mostly found in war torn areas especially Iraq and Afghanistan.... [tags: Business Product Development]
1946 words (5.6 pages)
- Case Study Analysis: IDEO Product Development The business model for IDEO began as an open-minded place to design, develop and manufacture new products. The last 20 years of proven product design driven by innovation has translated into profit margins for their clients and continuous refinement for IDEO’s process. IDEO pioneered “concurrent engineering” where design and engineering work together to produce aesthetically pleasing products that are also highly functional. This was different from many other similar companies that placed more emphasis on the industrial design than the engineering.... [tags: Business Product Development]
1535 words (4.4 pages)