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19 Cards in this Set
- Front
- Back
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What are the three forms of innovation? |
- Continuous innovation - Dynamically continuous innovation - Discontinuous innovation |
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What is Continuous innovation? |
A new product entry that is an improved or modified version of an existing product rather than a totally new product.
A continuous innovation has the least disruptive influence on established consumption patterns. |
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What is Dynamically Continuous innovation? |
A new product entry that is sufficiently innovative to have some disruptive effects on established consumption practices |
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What is Discontinuous Innovation? |
A dramatically new product entry that requires the establishment of new consumption practices |
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What are some examples of the 3 types of innovation? |
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What are product characteristics that influence diffusion? |
- Relative advantage - Compatibility - Complexity - Trialability - Observability |
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What are adopter categories? |
A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters. The five typical adopter categories are: - Innovators - Early adopters - Early majority - Late majority - Laggards |
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Draw the rogers model |
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What is the Bass Model? |
- bass is largely an empirical application of rogers model - bass model aims to estimate the pattern of adoption by period (month, quarter, year) - used in forecasting, particularly for products and technology - tells marketers how new products diffuse through the market ( what do these distributions look like e.g. sleeper, blockbuster)
- requires an independent estimate of the max cumulative sales - estimates how the max will be reached - cumulative sales follow a form of 'S' curve |
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What are some implications for marketers of the bass model? |
- forecasting new product adoptions - decisions about viability of new products - tracking of new product performance |
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What is a Sleeper distribution? |
Sleeper movies take a while to become popular
Word of mouth |
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What is a blockbuster distribution? |
Blockbuster movies are immediately popular
Advertising, hype |
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What is opinion leadership? |
The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of other who may be opinion seekers or opinion recipients |
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What are the parameters of the bass model? |
N = total number of potential buyers of new product
p = coefficient of innovation (pinovation) (or coefficient of external influence)
q - coefficient of imitation (or coefficient of internal influence) |
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What are the patterns that we see in brand buying that are also found in 'store purchasing' data? |
- Store choice is repertoire behaviour, though high first store loyalty is common for supermarkets - Buyers seen to treat stores as brands - Double Jeopardy - Duplication of purchase law
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What are the most expensive items to make available in a retail space? |
1. Clear space on the retail floor. (quality retailers e.g. apple provide more space. discount retailers e.g. kmart 'fill up the store'
2. Adequate levels of service |
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Why is there a preferred level of stimulation in retail enviroments? |
Too low and more stimulation is liked
Too high and more is disliked |
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What are some other important elements of the store that retailers have to think about? |
- the carpark - the transition zone - two hands - need baskets - moving - walking - signage - reading things - unwilling shoppers e.g. children - men shop faster - demographics - children |
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What is the Bum Brush Law? |
Shoppers won't linger and inspect goods in an area where they are repeatedly bumped ("excuse me") by other shoppers.
Refers to traffic flow within stores |
