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What are the four main characteristics of services?
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Intangible, Inseparable, Variable, Perishable
What are some common reasons for new product failure?
Overestimation of market demand, poor product design, incorrect positioning, bad timing, inadequate promotion, high development costs, competition.
What are hybrid products/services? Provide an example.
Products that combine tangible products with associated services, e.g., sale of a car with maintenance services.
What makes measuring service quality particularly challenging?
The intangible nature of services.
Why is it important to empower employees to handle complaints on the spot in service delivery?
It allows for immediate resolution of issues, enhancing customer satisfaction.
Why is variability a significant characteristic in services?
Service quality can vary depending on who provides the service.
What role does post-launch review play in new product development?
Evaluating the success of the product and considering necessary adjustments.
Define 'intangible' as it relates to services.
Services cannot be seen, tasted, felt, heard, or smelled before buying/using.
What is meant by 'inseparable' with respect to services?
Services are produced and consumed simultaneously.
What are the elements of service delivery excellence referred to as 'RATER'?
Reliability, Assurance, Tangibles, Empathy, Responsiveness
Explain the concept of 'perishable' in the context of services.
Services cannot be stored for future use; they are consumed at the time of production.
What are the three main considerations in the new product development framework?
Desirability, Feasibility, Viability
Name two key sectors that provide services and give an example of each.
Government (e.g., healthcare); Business sector (e.g., dining out).
What percentage of new products typically fail?
95%
What is the importance of 'customer centricity' in top service companies?
Focusing on customer experience is crucial due to the non-returnable nature of services.
List the stages in the new product development process.
1. Idea Generation, 2. Scoping, 3. Business Case Development, 4. Development, 5. Testing, 6. Launch, 7. Post-Launch Review
What is the difference between developing a product internally and acquiring it externally?
Developing internally uses a company's R&D to create new products, while acquiring externally involves buying existing companies/products.
Provide an example of idea validation in new product development.
Using market research and customer feedback to test and refine prototypes.
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