Answer to Question #216388 in Marketing for Ahmed Khan

Question

Q.No.1.                                                                             (Marks 4)

Go to the Save Mart, and make a list of 50 items that appear to be new products. Rate each product for its level of innovation, with a 25 being highly involved in highly innovative, and a ten being minor changes such as an improved package or pleasant smell. How genuinely new and innovative are these products overall? Do you think companies are being at risk-averse? Give a reason for your answer? 

Answer 1

These products are mixtures of new and innovated and old, as there is 50 percent that has been innovated and from the rest, 10 percent has minimum changes, thus suggesting overall the level of innovation in the products being moderate.

Since there are half of the products have been innovated thoroughly and the other half is moderate level so this will make the overall innovation less than expected and will be between moderate to low.

Yes, the companies are being risk-averse meaning they are afraid to take risks. Many customers like the products they have been using for a long time and making any changes in them can deteriorate the customer relationship with the company and they might not feel like purchasing the products again.

The reason can be;

1) the fear that the new innovative product might not be liked by the customers as not everyone is able to adapt to changes very well.

2) The companies fear that the product innovation might lead to loss.  

3) The growing competition can also play a role in hesitating from creating innovative and making changes as there are many options for the same product in the market.