Analysis of Consumer Behavior and New Product Development Essay

This essay provides a comprehensive analysis of various business concepts, starting with the importance of understanding consumer demographics for product development. It explores different distribution channels, particularly focusing on the online channels used by Chinese businesses for groceries. The essay delves into the different levels of a product, using the Porsche 911 GT2 RS as an example to illustrate core, generic, expected, augmented, and potential product levels. It also discusses the benefits and drawbacks of social media for businesses, especially in retaining younger customers. Furthermore, the essay applies the basic model of the buying decision process to the example of booking a trip on the Orient-Express, outlining the stages from need recognition to post-purchase behavior. Finally, it details the new product development process, using the hypothetical collaboration between Samsung and Insulet Corporation to develop a new insulin pump technology as a case study. Desklib provides access to similar solved assignments and study resources for students.

Running head: ESSAY QUESTIONS 1
Essay Questions
Name
Institution

ESSAY QUESTIONS 2
Essay Questions
Section One
Question #1
Every business organization has a favorable consumer profile or a list of client’s
characteristics. In this light, it is important for any given organization to take into account the
target market for its product, something that demographics play a crucial role (Antonopoulou,
Nandhakumar, & Henfridsson, 2016). To come up with a product, a firm is required to
understand clearly who its consumers are before even production. Consequently, it is important
for global companies that sell product s especially for babies and other items such as shampoos
to consider the demographic composition of the people. In case a company produces products
that are meant for babies, then it will tend to focus its attention on a younger population. In this
light, studying the demographics of a particular area is an essential aspect of an organization.
Question #2
Technology has no doubt transformed the way people transact in modern time thus
reshaping various distribution channels in the market today. The primary distribution channel
that was used by the Chinese to purchase groceries online is called the online distribution
channels. In this light, business tends to bring their products online and sell them through
websites rather than physically. There are various social networks that one can sell his or her
products through in recent times. Some of the leading social networks that businesses tend to use
to promote their product in the market include social networks like Facebook, MySpace, and
Friendster. Additionally, one can sell his or her products through social media such as through
Youtube, Flickr, and podcasts. All these means of selling and advertising products are
categorized under one single distribution channel that is the online distribution channel.

ESSAY QUESTIONS 3
Question #3
Primarily, a product is considered to be more than tangible where it meets the overall
needs of consumers and as well as an abstract value. For this reason, there are various product
levels in the new market. Some of the primary product levels include the core product, generic
product, expected product, augmented product, and potential product. One of the newest models
of cars in the market today is The Porsche 911 GT2 RS.
Core Product
In essence, this is considered as the basic product that is produced in the market to cater
to the common good of the buyers. In this light, the product that is created under this level is
only meant to fulfill the basic needs rather than luxurious needs. Notably, the more beneficial a
product is, the more a particular customer requires the product in the long run.
Generic Product
In essence, this stands for the qualities of a particular product in the market. For example,
The Porsche 911 GT2 RS can be considered a product that is produced with the utmost level of
quality to compete with other similar products in the market.
Expected Product
These are products that are produced to meet all the expectations of consumers in the
market whenever they purchase a specific product.
Augmented Product
Primarily, this refers to all sorts of products that are meant to give additional factors
which often distinguish a particular product from other items in the market. For example, there
are various types of cars that meet customer’s demands; however, cars such as The Porsche 911

ESSAY QUESTIONS 4
GT2 RS are developed in a unique manner such that they are different from other basic cars in
the market.
Potential Products
The transformation of the augmented products gives rise to potential outcomes in the
market. These are products that are anticipated to be developed further in the future and may not
necessarily exist in the market.
Question #4
There are various ways in which social media has benefited businesses especially in
attracting more customers while retaining the already existing ones especially the younger
generation who use social media at a higher rate in the modern world. Some of the typical
advantages of social media among people of the age of 18 to 24 of age include more inbound
traffic, improved search engine rankings, higher conversational rates, and improved brand
loyalty. Due to social media, various businesses are in a position of stamping command in the
market because they can boast improved search engines and higher conversational rates. This is
because many youths in the society tend to use social media this increases the chance of them
accessing a particular product.
While social media has brought with it various advantages, there are as well specific
disadvantages, especially when retaining young customers in society. For instance, social media
an organization may need to employ qualified personnel to manage an account and may not be in
a position to think along the line of the youth in the society. Additionally, the youth may be
exposed to unnecessary competition through social media.

ESSAY QUESTIONS 5
Section Two
Question #1
Stages of the Basic Model of the Buying Decision Process by Applying This Model to the
Orient-Express
Traveling from London to Venice via Venice Simplon-Orient-Express train is no doubt
one of the most mouthwatering experiences that one can anticipate going through. Consequently,
this is because the train has for a long time been associated with glamour, luxury as well as
intrigue (Benur & Bramwell, 2015). In essence, the VSOE often makes a regular train journey
crossing through Europe while its passengers are served with gourmet meals, attentive staffs, and
private overnight cabins. The following are stages that one can use to book a ticket prior to travel
from London to Venice.
Problem or Need Recognition
In essence, this is the most crucial stage in deciding on purchasing any product. In this
light, one is expected to have a plan for why he or she should book a train from London to
Venice. In this case, my main aim of booking the train is to plan for a luxury trip to Italy
(Tukker, 2015).
Information Search
This is the next step that a particular consumer may consider after one has come up with
an apparent need for purchasing a product. In this light, one is expected to search for search for
both internal and external sources that are related to VSOE. Some of the information that one
might be interested in include the price of the ticket and the platform one is going to pay for the
ticket.

ESSAY QUESTIONS 6
Evaluation of Alternatives
In this step, one is expected to look or evaluate different brands based on the varying
prices and products attributes. In this light, one might decide to book another train in place of
Orient Express.
Purchase Decision
Essentially, this is the stage where one is contented in buying a particular product, in this
case, its train ticket.
Post Purchase Behavior
This stage is crucial as it determines whether a buyer will be loyal to a company. If one is
satisfied with the available ticket prices, then it is a guarantee that the customers will be
motivated to buy another ticket in another time (Hong, Lee, & Suh, 2017).
Question #2
Stages of the New Product Development Process
Idea Generation
The first step is coming up with ideas regarding the new product that is to be developed
by both Samsung and Insulet Corporation. The product to be produced in this case is the insulin
pump technology (Karhu, Ritala, & Viola, 2016). Such an idea can be formed from getting ideas
from dealers as well as agents regarding particular services that have been observed by
competitors. One disadvantage of this stage is that one might get the wrong information
regarding the new product.
Idea Screening

ESSAY QUESTIONS 7
After coming up with an idea concerning a new product, one is expected to screen then
the idea rose on the new products (De Massis, Frattini, Pizzurno, & Cassia, 2015). One of the
main questions for testing an idea is whether it is necessary to introduce new markets.
Concept Testing
After an idea is screened what follows is the concept testing. In this case, a firm is in a
position offending out whether consumers understand the new product idea. In this light, insulin
pump technology has to be is tested in the market to see whether the targeted consumers are
aware of it (Charter & Tischner, 2017). One disadvantage is that it might turn out that the
consumers are not aware of the suggested new product.
Business Analysis
In essence, this is a very crucial stage, particularly when developing a new product as a
detailed analysis of the business is done. Notably, this is where both Samsung and Insulet
Corporation find out whether the proposed product is commercially profitable (Cui & Wu,
2016). In this light, the new product is studied from the business point of view.
Product Development
This is the stage where both Samsung and Insulet Corporation have decided to introduce
the new product into the market (Cusumano, Kahl, & Suarez, 2015). All steps are followed in the
production and distributing the new product. Consequently, the production department makes
plans that are aimed at producing a new product.
Test Marketing
In this step, the new product is produced on a small scale and then introduced in a rather
small market.
Commercialization

ESSAY QUESTIONS 8
In case the test marketing proves successful than both the companies introduce new
products in large quantities.
Review of Market Performance
The final step for this is to make sure that the performance of the new product in the
market is reviewed across the country.

ESSAY QUESTIONS 9
References
Antonopoulou, K., Nandhakumar, J., & Henfridsson, O. (2016). Creating new value through
repurposing digital innovations. In Academy of Management Proceedings (Vol. 2016,
No. 1, p. 16457). Briarcliff Manor, NY 10510: Academy of Management.
Benur, A. M., & Bramwell, B. (2015). Tourism product development and product diversification
in destinations. Tourism Management, 50, 213-224.
Charter, M., & Tischner, U. (2017). Sustainable product design. In Sustainable Solutions (pp.
118-138). Routledge.
Cui, A. S., & Wu, F. (2016). Utilizing customer knowledge in innovation: antecedents and
impact of customer involvement on new product performance. Journal of the academy of
marketing science, 44(4), 516-538.
Cusumano, M. A., Kahl, S. J., & Suarez, F. F. (2015). Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), 559-575.
De Massis, A., Frattini, F., Pizzurno, E., & Cassia, L. (2015). Product innovation in family
versus nonfamily firms: An exploratory analysis. Journal of Small Business
Management, 53(1), 1-36.
Hong, J., Lee, O. K., & Suh, W. (2017). Creating knowledge within a team: a socio-technical
interaction perspective. Knowledge Management Research & Practice, 15(1), 23-33.
Karhu, P., Ritala, P., & Viola, L. (2016). How do ambidextrous teams create new products?
Cognitive ambidexterity, analogies, and new product creation. Knowledge and Process
Management, 23(1), 3-17.
Tukker, A. (2015). Product services for a resource-efficient and circular economy–a
review. Journal of cleaner production, 97, 76-91.

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