Current Status:
ABC Inc. is a company specializing in personal care products. Electric shavers have been the main source of revenue for the company. Recently, based on companyâs internal record, the sales of its flagship product (ABC Smart Shaver 1800) in this product line is slowly trending downward. Comments from the companyâs dealers and sales staffs have indicated that people do not seem to like this model as much as before.
At the same time, the companyâs R&D team has recently been designing a new concept model (ABC Smart Shaver 1900) that has a few minor changes in product features along with a stylistic change in appearance and shape from its current model. The differences in product features between the new concept model and the current model are:
ABC Smart Shaver 1900 features a new blade system for closer shaving while ABC Smart Shaver 1800 features a blade system for comfortable shaving.
ABC Smart Shaver 1900 features an advanced digital interface that shows all the required information while ABC Smart Shaver 1800 features simple battery-level & lock indicators.
ABC Smart Shaver 1900 features a number of personal shaving-settings to choose from while ABC Smart Shaver 1800 lacks this feature.
ABC Smart Shaver 1900 features rings with anti-friction coating for comfortable shaving while ABC Smart Shaver 1800 lacks this feature.
While prototype shavers for this new model has been designed and made, this new model has not yet been finalized/approved for mass production. The management team of ABC Inc. needs to decide whether they should be replacing the current flagship model with the new concept model. Due to the importance of this decision, the management team has commissioned a research project to investigate the feasibility of this product replacement.
Managerial Problem/Question:
Should the company produce the new concept electric shaver to replace the existing flagship model? In other words, if the new concept model is to be produced, will it be a good replacement for the existing flagship model?
Research Objectives/Questions:
To answer the aforementioned managerial question, the research team needs to provide the necessary information for addressing the following research objectives/questions:
Whether the new product can perform better in sales and/or customer satisfaction than the existing product to justify replacing it?
Is there anything about the new concept model that needs to be altered before introducing it to the market?
How much should the price be for the new model?
Who will be the primary type(s) of customers for the new model?
Sample Solution
Hunter 2000). Giacobbe (1991) determined that adaptive behaviors account for approximately 20 percentage of the variance in sales overall performance, and extant research normally helps the perception that ASB enhances performance (e.g., Boorom, Goolsby, and Ramsey 1998; Park and Holloway 2003; Spiro and Weitz 1990). inside the most wide-ranging research of the connection, Franke and Park (2006) found via a meta-analysis of 26 samples and over 5,800 salespeople that ASB was fantastically correlated with self-rated salesperson overall performance. It stands to cause that the same courting will maintain real in crosscultural sales conditions, due in component to the fact that culturally sensitive salespeople will be greater adept at organising and retaining cross-cultural relationships. (Hansen et al., 2011) three.three.5 function of the sales -price creation inside the path of the servitisation (Vandermerwe & Rada, 1988) of enterprise exchanges, the shop clerkâs role has changed, away from being the communicator among the clientâs wishes and the companyâs merchandise, to actively conducting growing price for the customer the use of the business enterprise resources as support (Wotruba, 1991). The preliminary concept of salespersonâs cost introduction is that they can add price for the patron by means of augmenting a product thru services or with the aid of finding a solution inside the shape of mixed products and services (Tanner, Fournier, smart, Hollet &c Poujol, 2008). hence, client value is no longer taken into consideration to lie within the product itself (Levitt, 1969; Miles, 1961) however as a substitute to be added with the aid of the salesclerk by either increasing the patronâs benefits or decreasing the fee (Anderson et al., 2007; Rose, 1991). greater these days, the terminology of fee delivered has been substituted by way of the concept of cost selling, with the idea that the shop clerk does no longer need an current product or supplying anymore but can create economic fee by making the clientâs business extra efficient or powerful (Anderson et al., 2007; Hanan, 2004; Rackham & DeVincentis, 1999). (Hohenschwert, 2012) Blocker and his colleague are also said like that, inside enterprise markets, salespeople are in a high role to recognize and manage the fees and profitability of man or woman customers, impact repeat buying, increase proportion-of-spending, and shape different strategic effects that would assist their firmâÂÂs appropriate more price. yet little empirical work addresses how price appropriation for the firm is mediated or can be undoubtedly shaped via the efforts of the income force. And Our framework portends improved opportunity and duty for the income force in that refining abilities in figuring out and cocreating price for clients and supporting decide how to best suitable fee from exchange relationships can extensively enhance the price of the income force in an company. yet such talent profits necessitate education to provide the income pressure with the needful skills and reimbursement and praise systems to encourage such activities. Salespeople and promoting corporations that build trusting, particularly relational exchanges with customers may be tempted to take gain of such relationshipsâÂâspecifically if the income pressure is positioned underneath some pressure to appropriate greater income. (Blocker et al., 2012) â¦>
Hunter 2000). Giacobbe (1991) determined that adaptive behaviors account for approximately 20 percentage of the variance in sales overall performance, and extant research normally helps the perception that ASB enhances performance (e.g., Boorom, Goolsby, and Ramsey 1998; Park and Holloway 2003; Spiro and Weitz 1990). inside the most wide-ranging research of the connection, Franke and Park (2006) found via a meta-analysis of 26 samples and over 5,800 salespeople that ASB was fantastically correlated with self-rated salesperson overall performance. It stands to cause that the same courting will maintain real in crosscultural sales conditions, due in component to the fact that culturally sensitive salespeople will be greater adept at organising and retaining cross-cultural relationships. (Hansen et al., 2011) three.three.5 function of the sales -price creation inside the path of the servitisation (Vandermerwe & Rada, 1988) of enterprise exchanges, the shop clerkâs role has changed, away from being the communicator among the clientâs wishes and the companyâs merchandise, to actively conducting growing price for the customer the use of the business enterprise resources as support (Wotruba, 1991). The preliminary concept of salespersonâs cost introduction is that they can add price for the patron by means of augmenting a product thru services or with the aid of finding a solution inside the shape of mixed products and services (Tanner, Fournier, smart, Hollet &c Poujol, 2008). hence, client value is no longer taken into consideration to lie within the product itself (Levitt, 1969; Miles, 1961) however as a substitute to be added with the aid of the salesclerk by either increasing the patronâs benefits or decreasing the fee (Anderson et al., 2007; Rose, 1991). greater these days, the terminology of fee delivered has been substituted by way of the concept of cost selling, with the idea that the shop clerk does no longer need an current product or supplying anymore but can create economic fee by making the clientâs business extra efficient or powerful (Anderson et al., 2007; Hanan, 2004; Rackham & DeVincentis, 1999). (Hohenschwert, 2012) Blocker and his colleague are also said like that, inside enterprise markets, salespeople are in a high role to recognize and manage the fees and profitability of man or woman customers, impact repeat buying, increase proportion-of-spending, and shape different strategic effects that would assist their firmâÂÂs appropriate more price. yet little empirical work addresses how price appropriation for the firm is mediated or can be undoubtedly shaped via the efforts of the income force. And Our framework portends improved opportunity and duty for the income force in that refining abilities in figuring out and cocreating price for clients and supporting decide how to best suitable fee from exchange relationships can extensively enhance the price of the income force in an company. yet such talent profits necessitate education to provide the income pressure with the needful skills and reimbursement and praise systems to encourage such activities. Salespeople and promoting corporations that build trusting, particularly relational exchanges with customers may be tempted to take gain of such relationshipsâÂâspecifically if the income pressure is positioned underneath some pressure to appropriate greater income. (Blocker et al., 2012) â¦>
