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| An attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm's research and development (R&D) department. |
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| Having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use. |
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| Brief written descriptions of a product or service; its technology, working principles, and forms; and what customer needs it would satisfy. |
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| The process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions. |
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| Stage of the product life cycle when sales decline and the product eventually exits the market. |
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| The process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters. |
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| The second group of consumers in the diffusion of innovation model, afterinnovators, to use a product or service innovation; generally don't like to take as much risk as innovators but instead wait and purchase the product after careful review. |
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| A group of consumers in the diffusion of innovation model that represents approximately 34 percent of the population; members don't like to take much risk and therefore tend to wait until bugs are worked out of a particular product or service; few new products and services can be profitable until this large group buys them. |
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| Product pioneers that are the first to create a market or product category, making them readily recognizable to consumers and thus establishing a commanding and early market share lead. |
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| Stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category. |
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| The process by which ideas are transformed into new products and services that will help firms grow. |
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| Those buyers who want to be the first to have the new product or service. |
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| Stage of the product life cycle when innovators start buying the product. |
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| introductory price promotion |
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| Short-term price discounts designed to encourage trial. |
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| Consumers who like to avoid change and rely on traditional products until they are no longer available. |
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| The last group of buyers to enter a new product market; when they do, the product has achieved its full market potential. |
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| Innovative product users who modify existing products according to their own ideas to suit their specific needs. |
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| manufacturer's suggested retail price (MSRP) |
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| The price that manufacturers suggest retailers use to sell their merchandise. |
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| Stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them. |
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| New product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market; also called breakthroughs. |
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| Conducted before a product or service is brought to market to determine how many customers will try and then continue to use it. |
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| Also called product design; entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features. |
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| Defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning. |
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| The first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, sometimes even crafted individually. |
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| Involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist. |
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| Fees firms pay to retailers simply to get new products into stores or to gain more or better shelf space for their products. |
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| Introduces a new product or service to a limited geographical area (usually a few cities) prior to a national launch. |
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| promotions to wholesalers or retailers to get them to purchase the new products. |
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Major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry.
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| A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises. |
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| Specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants. |
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| A type of service gap; the difference between the firm's service standards and the actual service it provides to customers. |
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| Pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure. |
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| Concern for others' well-being and support of their decisions in a job setting. |
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| In context of service delivery, means allowing employees to make decisions about how service is provided to customers. |
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| A characteristic of a service: It is produced and consumed at the same time; that is, service and consumption are inseparable. |
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| Providing the equipment or systems needed to perform a task in a job setting. |
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| A characteristic of a service; it cannot be touched, tasted, or seen like a pure product can. |
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| A type of service gap; reflects the difference between customers'expectations and the firm's perception of those expectations. |
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| A characteristic of a service: It cannot be stored for use in the future. |
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| Refers to the customer's perception of the fairness of the process used to resolve complaints about service. |
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| Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer. |
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| Results when a service fails to meet the expectations that customers have about how it should be delivered. |
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| Customers' perceptions of how well a service meets or exceeds their expectations. |
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| A type of service gap; pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets. |
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| A characteristic of a service: Its quality may vary because it is provided by humans. |
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| voice-of-customer (VOC) program |
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| An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions. |
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The area between customers' expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere.
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