"Product-oriented: A product and service offering is regarded as an “innovation”, if the product changes in terms of form, attributes, features, and overall benefits; such changes have a twofold connotation, one, in terms of technology, and two, in terms of consumption usage and behavioral patterns."
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"Product-oriented: A product and service offering is regarded as an “innovation”, if the product changes in terms of form, attributes, features, and overall benefits; such changes have a twofold connotation, one, in terms of technology, and two, in terms of consumption usage and behavioral patterns. -the product is “innovative”, if it is “new” in terms of form, attributes and features. -there are changes in technology, as well as impact on consumer consumption behavior. There are two sub-approaches to classify “innovative products” as per the product-oriented definition; viz.: Approach I: This approach classifies innovative products based on the degree to which the new product and service offering would upset established consumer usage and behavioral patterns. As per this approach, innovations can be classified into three categories, continuous innovations, dynamically continuous innovations, and discontinuous innovations. - Continuous innovation: A product is regarded as a continuous innovation, if it is a modification over an existing product; it is not essentially a new product, but an improvement over the already existing one; they could also be line extensions, and as such continuous innovations do not disrupt established usage and behavior patterns; For example, improvements in laser jet printers, digital TVs, shaving razors, or changes in call plans (Airtel, Cell One). - Dynamically continuous innovation: An innovation is regarded as dynamically continuous, if it exerts some influence on usage and behavior patterns, but this influence is not totally disruptive; it does not totally change behavior patterns; For example, the walkman giving way to the portable CD player, or the pager giving way to the cell phone. - Discontinuous innovation: Discontinuous innovations lead to disruption of usage and consumption behavior patterns; there is a change not only in the technology, but also requires consumers to change to new behavioral patterns in terms of usage and consumption. For example, the postal mail giving way to email and internet, the radio/record player giving way to portable music and sound, the telephone giving way to the mobile phone, or the traditional glucose and diabetes blood test giving way to the home kit. Approach II: According to another approach, innovative products can be classified on the basis of how the “newness” in form, features and attributes can impact consumer satisfaction; the greater the degree of satisfaction, higher it ranks on the scale of “innovativeness.” Innovations can be classified as artificially new, marginally new, and genuinely new. - Artificially new: Embody not much of a change, and do not much impact user satisfaction; For example, a new flavor of an ice-cream. - Marginally new: Here, there is some level of change in customer satisfaction, because the product is new, differs a little over the existing products and provides greater benefit; For example, the laser printer replacing the dot-matrix printers. - Genuinely new: This implies a totally new product that impacts user satisfaction completely; it differs from existing product and service offerings, and leads to customer satisfaction, as the usage gives greater benefit. For example, microwave owens, cell phones, home medical tests and kits. Source: http://in.docsity.com/en-docs/Diffusion_of_Innovation_-_Consumer_Behavior_-_Solved_Quiz_"
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