INTRODUCTION
Past researches believed that an organization should thoroughly focus on consumer starting from idea generation stage until product launch. As suggested by Sanden et al., (2006) that in order to potentially achieve higher consumer value, consumer satisfaction and high profit margins from new product, activation of consumer in the development process is strongly advised. Therefore, consumer acceptance level is as important as the product itself and a company should be cautious of potential rejection which leads to product failure. This paper aims to elaborate one of the factors behind product failure, namely the concept of consumer doubt towards new product as found in recent study by Saaksjarvi and Morel (2010). This concept will be explained together with its indicators and lastly we will follow the explanation with future research direction to enrich the findings which will be supported with small scale primary research.
CONCEPT OF CONSUMER DOUBT
The relationship between new product development and organization’s success is now important to be acknowledged. Past research found that new product development is a crucial activity to conduct if a company aims to secure a long term survival and growth (Brown and Eisenhardt, 1995; Clark and Fujimoto, 1991; Craig and Hart, 1992). The process itself is really complex due to expensive and risky as Page (1993) indicated that large portion of product development budgets going towards new product failures. High rate of failure have been faced by most companies and ironically only a small portion of the new product ideas are commercially successful (Booz, 1980). To avoid this situation, a company should identify the underlying reasons of product failure for the opportunity ...
... middle of paper ...
...2011]
Pinch, T.J. and Bijker, W.E. (1984) The social construction of facts and artifacts: or how thesociology of science and the sociology of technology might benefit each other. SocialStudies of Science, 14(3), pp. 399-441.
Rogers, E.M. (2003) Diffusion of Innovations, 5th ed., Free Press, New York, NY.
Saaksjarvi, M. and Morel, N.P.K. (2010) The development of a scale to measure consumer doubt toward new products. European Journal of Innovation Management, 13 (3), pp. 272-293.
Sanden, B., Gustafsson, A. And Witell, L. (eds.) (2006) The role of customer in development process. Customer Involvement in New Service Development. London : Imperial College Press.
Vonderen, M.L., Bekkers, R., Hermanussen, R., Sikora, G. And To’th, A. (1996) gender and doubts about study in technology: a Duth-Hungarian comparison, Journal of General Psychology. 23(1), pp/ 5-18.
Schlager, Neil, and Josh Lauer. Science and Its Times: Understanding the Social Significance of Scientific Discovery. Detroit: Gale Group, 2000. Print.
Two examples of new product development tools include stage-gate processes and the critical path method, both of which possess benefits and cons. In the context of bringing a new product to the market place, the stage-gate method provides many direct benefits to the product manager. Stage-gate processes allow organizations numerous opportunities to kill projects that no longer seem to be viable products, saving both wasted time and money (Cooper, 2014). Additionally, the stage-gate process provides incentive for senior management to keep abreast of the development cycle of new products. For these reasons, it is suggested that product managers strive to implement stage-gate processes into their development of new
Schumpeter’s view of competition is that companies’ innovation is continuously destructive to processes and assets. In that respect, new technologies displace the older ones making way for greater growth than in the conservative and stable markets. The authors’ review of the failure by IBM and Microsoft provides a good description of that Schumpeterian competition and diseconomy of scope. In that analysis, the author’s address the question on the causes of creative destruction through which they challenge the view that failure in new technological areas by companies that have been successful in theindustry is explained by two scenarios. One being that the companies fear the cannibalization hence ends up under-investing in the new market. The other explanation challenged is that the companies tend to develop cognitive frameworks and organizational capabilities that slow their identification and response to new opportunit...
“The Social Construction of Facts and Artifacts” is about "integrated social constructivist approach towards the study of science and technology"(pg 399). The author's Pinch and Bijker discuss that even though it has been a practice to separate science and technology, but they are hugely connected because of this they might benefit from each other. The authors discuss about the three main parts of science and technology termed as "Sociology of science", "the science technology relationship" and the "technology studies".
Collins, H. M. (1983). The sociology of scientific knowledge: Studies of contemporary science. Annual Review of Sociology, 265-285.
As mentioned the internal risk addressed in this paper is the cohesiveness of the organizational structure. Wal-Mart must ask itself, “Are all of our departments and employees supporting the successful launch of the service?” To answer this question, the successful company must develop a cross-sectional team that is representative of stakeholders in the company. This includes human resources, operations, manufacturing, sales associates and so forth. To combat this risk, the mitigation plan must include a cross-functional team. Forming a cross-functional team is an important aspect of new product or service introduction as the diversity of the team make-up should promote effective communication and technical competencies amongst team members as well as foster innovation and creativity. “New product development is crucial in determining which firms gain a competitive advantage and become market leaders, and is a key factor driving business success owing to the importance of new products to a firm’s prospects”, (G. Huang et al,
For assistance in this evaluative process Fortenberry (2010), marketers often rely on a tool known as the SWOT Analysis. (p.185) The SWOT Analysis is a helpful tool for Scarlet Hospital. By using this tool, they will be able the fully outline their strengths, which they can build upon. They will also be able to determine their weaknesses. For example, weaknesses could include poor customer service, antiquated technology, or poor product offerings. According to Fortenberry (2010), weaknesses undermine product performance and ultimately, exchange in the marketplace. (p.
Hull, DL 1988. Science as a Process : An Evolutionary Account of the Social and Conceptual Development of Science . The University of Chicago Press . Chicago .
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.
The article by Trevor J. Pinch and Wiebe E. Bijker “The Social Construction of Facts and Artifacts” talks about the “separation of science from technology” and how the study of science and technology can benefit each other. The authors draw attention to three bodies of literature in science and technology studies: Sociology of science, the science-technology relationship, and technology studies.
A Product Life Cycle can vary due to various marketplace product or service offerings. Maturity length of time may vary because the end consumer was not prepared to accept the new offerings. Faster maturity breakthroughs can be a direct result of certain production service breakthroughs that usually get accepted quite quickly. Decline of a product or service can be the result of a customer interest and then disinterest. When a product or service does not extend its growth, it can be because the product or service has lost its usefulness. In conclusion, The Product Life Cycle can be used as a marketers planning tool to create portfolio planning, strategy formations, as well as future forecasting. One must never to marketplace, and competition. (Fortenberry, J. L.,
Wasserman, Michael. 15 Techniques When Dealing With Customers. My Success Company. 25 January 2005. .
There are many elements affecting to the success of a launching. The basic factor is to develop product that satisfies consumers’ demands and maintain the brand promise. However, consumers are not only looking for the quality of product but also concerning about the price, the promotion and so on.
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. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***