This website uses cookies to ensure you have the best experience. Learn more

Innovation Is The Key To Product Progress. How Does A Consumer Make His Or Her Decision? Model Of Consumer Decision Making? What Is Innovation? What Is Product Progres?

1312 words - 5 pages

"Innovation is the key to product progress."As marketers we must understand that the success of any product lies in the consumers that use it. If the consumer is not satisfied then the product will eventually disappear. Consumer behaviour is an essential tool in developing tactics. It helps the marketer understand what the consumer wants and how he makes his decisions.Forming of consumer behaviourThe consumer:THINKS SPEAKS ACTS BELIEVES BEHAVES.The behaviour of the consumer differs due to differences in socio-cultural factors. For example, a university student in Dubai will be less mature in his buying behaviour as compared to a university student in the U.S.A. This is mainly due to how much you understand. A market where the consumer is highly learned, selling of products is more of a challenge to marketers, and so they have to give importance to innovation. The decision process of a learned person depends upon the innovative features of the product.Whereas, in a market where the consumer is less learned the importance of innovation is lesser due to the fact that the consumers in this market have less knowledge.To further understand the mind of our consumers, lets take a look at a Simple Model of Consumer Decision Making.Table 1. A Simple Model of Consumer Decision Making.The above table shows us the entire consumer decision-making process. We can see that the first type of influence on the consumer comes from external sources in which a firm's marketing efforts are on top. In these efforts we see that the Product is first on the list of efforts.When we talk about the product we have to remember that innovation is the basic necessity for the existence of a product. We must also remember that the consumer bases his decisions on innovation.Since innovation is our main focus, let's get some details on it.Innovation"New-product innovation is a critical activity for the marketer. As new and better products are developed, they are launched in the marketplace and their fate is determined by votes of consumers through their purchase or rejection of the products. New-product introductions are becoming more expensive, and the chances of product success are less than in previous years. Thus it is important to understand the nature of an innovation and how individuals and groups of consumers adopt them. The term "innovation" can be defined in several ways. One view based on consumer perceptions defines it as "any idea, practise, or material artefact perceived to be new by the relevant adopting unit." Another view establishes a continuum or range of newness based on the product's effect on established consumption patterns. Under this conception three categories of innovation are classified as described below:1.Continuous innovations have the least disrupting influence on established consumption patterns. Product alteration is involved, rather than the establishment of a totally new product. Examples of products that are representative of this situation are...

Find Another Essay On Innovation is the key to product progress. How does a consumer make his or her decision? Model of consumer decision making? What is innovation? What is product progres?

What does Michael Adas think is the key indicator of human progress? How does he demonstrate his point? What implications does his argument have f

568 words - 3 pages “Machines as the measure of men: Science, technology, and ideologies of western dominance” written by Michael Adas in 1989 revealed the Europeans’ perceptions on non-western people and cultures as well as how Europeans interacted towards Asians and Africans by making a comparison with their superiority in scientific and technological knowledge. The author discussed the key indicator of human progress in Chapter 3: “Global Hegemony and the Rise

Buy-Grid model? Why is it important in decision making? What is the indication?

1129 words - 5 pages understand the rules of any games; if you don't know how to score, you are unlikely to win.The buy-grid model is a version of a theory developed as a general model of rational organization decision making, explain how companies make decisions about, for example, where to locate a plant or make a purchase. The buy grid model has two parts: the buy-phase model and the buy class.The buy-phase model in a management class as the rational or extensive

Decision-Making & Innovation

841 words - 4 pages The term, ‘innovation’ refers to an act of doing something new (Dictionary) while the term, ‘decision making’ can be referred to as a ‘deliberation about the decision situation in order to make a choice’ (O’Sullivan, T. 1988). This paper intends to explore the relatedness between ‘Decision Making in Social Work’ and the research on innovation, “Investigating Innovation Using a Context: Community Based Child Care Services”. Social work aims to

product innovation

2982 words - 12 pages of hard alcohol is around a liter. We will package the products in liter bottles that can be resealed for storage to drink again some other time.      Another step in planning the product, we have to do test marketing. This is the stage where the product and marketing program are tested in realistic market settings. Because our product or service will have to be built and opened before we actually really know how it does

Consumer Decision Making Process

1940 words - 8 pages Consumer Decision Making Process A key factor in successfully marketing new/existing products or implementing a product Extension is a thorough understanding of the motivation, learning, memory, and decision Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch

Consumer Decision Making-Process

1327 words - 5 pages Challenged with competing products, companies are finding it more important to understand why a consumer would choose one product over another. To do this, the company needs to recognize the complex decision-making process a consumer goes through. The variety of products is always expanding, but with the consumers' limited temporal and cognitive resources, they cannot simply analyze all the products.Making rational choices does not only require

Consumer Decision Making Assignment

700 words - 3 pages How do consumers choose what products they are going to buy? Do they blindly walk in to a store and choose the first thing they see, or is there a science behind their behavior of buying? This is a question that has plagued researchers for years. Millions of products are bought worldwide every day, but what drives consumers to buy what they do? The book, Consumer Behavior, states that there are four views of consumer decision-making. These views

EKB's consumer decision model - Holiday to Vanuatu

5404 words - 22 pages purposes and also aim to give an understanding of what happens as variables and circumstances change (Erasmus et al, 2001). The utilisation of EKB's consumer decision making model has allowed us to become more perceptive when undertaking this complex purchase. The model under analysis is a schematic representation of the stages of the buying process;2.1 Need recognitionThe tension caused by the difference between actual state and desired state

Consumer Behaviour: Decision Making Process

879 words - 4 pages product they want.In the search stage, the consumer usually searches his or her internal sources before seeking external sources of information. Things like past experience and memory are regarded as internal source of information. The greater the relevant past experience, the less external information the consumer is required to reach an end decision. However, perceived risk can also influence the amount of information sought. In a high risk

Decision making process of consumer behaviour

3492 words - 14 pages Decision making is a focal interest in consumer-behavior research; consumers constantly make decisions about the selection, consumption, and disposal of products. Many of the most important decisions consumers face involve making difficult trade-offs such as price versus safety in purchasing an automobile, quality of life versus longevity in some health care choices, or risk versus return in selecting investments for a child's educational

What it takes to be a great product innovation manager - MKTG 1311 - Assignment 1

4504 words - 19 pages Abstract The purpose of this report is to find out what it takes to be a great product innovation manager. New technologies and social media are two main driving forces impact changing marketing. The importance of innovation landscape was mentioned. Ten product development/product innovation manager related job advertisements was summarized and key factors in recruitment such as strategic thinking, problem solving, storytelling and so on are

Similar Essays

What Is The Dutch Food And Consumer Product Safety Authority?

1985 words - 8 pages . A mission is what the company stands for and the primary objectives it aims to achieve, whilst a vision is what the company wants to achieve in the far future. A strategy is a way of tackling the issues faced when working towards the vision and/or the mission. It is the answer to the question how? Just like many other public organization, the NVWA had to downsize its workforce which likewise put pressure on the effectiveness and efficiency of

What Is Decision Making? Essay

2623 words - 10 pages number of reasons. First of all, it is often risky. Risk is defined as the possibility of suffering harm, loss or danger. We tend to be comfortable in the patterns and expectations. Often times making a decision means we must step out of the "comfort zone" into the unknown. Through past experience we know that even a slight shift in the course can have dramatic effects on what the lives will be. Secondly, leaders often make decisions while they are

Extensive Decision Making Process Consumer Behaviour: Analyse The Many Elements Of Ekb's Consumer Decision Model In Relation To Consumer Behaviour

5457 words - 22 pages that logically indicate the interrelationship of variables for research purposes and also aim to give an understanding of what happens as variables and circumstances change (Erasmus et al, 2001). The utilisation of EKB's consumer decision making model has allowed us to become more perceptive when undertaking this complex purchase. The model under analysis is a schematic representation of the stages of the buying process;2.1 Need recognitionThe

Consumer Doubt Toward New Product Innovation

2110 words - 8 pages during usage. Lack of aesthetic appeal will raise the prospect of consumer doubting whether the product is something that they want to be seen with. Those two aforementioned factors are the major issues strongly found in the recent data results. Furthermore, durability and newness also considered as sources of doubt. Consumers somehow doubtful whether the product will be long-lasting or the product concept is truly a new concept. On the other