Wilson Has Been Tasked with Asking Customers What They Think

question 19

Essay

Wilson has been tasked with asking customers what they think about a new product concept.What kinds of questions should he ask? What role can customers play in testing the product concept?
Target customers are useful in defining the product concept.Companies present models,limited prototypes,and verbal or written descriptions of the product concept to customers,individually or in focus groups.Computer graphics are also used to depict elements of the product and even functionality.
During this phase,companies start getting market input to refine and develop the concept.Customers are asked about their attitudes toward the product idea and if they perceive the idea as different from other products on the market.Product developers want to know,Would you buy this product and how much are you willing to pay? The company needs to know if the product is appealing to the target audience.A second question is also essential in this testing,What would you like to change about the product concept? If customers suggest changes that are not feasible (too costly to implement,not technically possible),it dramatically reduces the viability of the project.Whenever possible,however,customer feedback is incorporated into the product's development.By making adjustments during this phase rather than waiting until after the launch,companies can increase the probability of success.Since the information is so critical,researchers use large samples of target customers to ensure confidence in the findings.

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Definitions:

Peak-Load Pricing

A pricing strategy that adjusts prices in response to varying levels of demand, typically higher during peak usage times.

Marginal Revenue

The additional income that is generated by selling one more unit of a good or service.

Peak-Load Pricing

A pricing strategy that applies higher charges for goods or services during times of peak demand to manage usage and maximize profit.

Second-Degree Price Discrimination

Practice of charging different prices per unit for different quantities of the same good or service.