Page 527 - Business Principles and Management

Unit 6

Salespeople can also gather informa-
tion from customers. Because salespeople
regularly talk to customers, they collect
valuable information that can help the
company improve its products. Managers
should encourage salespeople to learn
as much as they can about customer
likes and dislikes. Many companies have
specific procedures and forms for sales-
people to use when they gather important
information from customers. The proce-
dures ensure that the information is com-
PHOTO: © GETTY IMAGES/PHOTODISC. product development.
municated to the people responsible for

If a company wants to get a great deal
of information from consumers about
possible new products, it might form a
consumer panel—a group of people who
offer opinions about a product or service.
The panel consists of several people who
have bought or are likely to buy the com-
pany’s products. Panel members meet with
trained interviewers to discuss their feel-
Why might a company use its ings about new products and what they think the company can do to improve
customers to help in the process its current products.
of product development? Have you ever been shopping in a mall when someone asked you to partici-
pate in a short interview or product review? Companies often conduct research
in places where customers shop. The research may involve asking customers a
short series of questions about their experiences with products or a more com-
plicated process in which consumers are shown samples of new products and
asked detailed questions about them. The developers of Millennium, the large
store described earlier that was so exciting to Laresa, likely used a great deal of
consumer research to design the best combination of products, services, and
store layout to meet customer needs.
& PRODUCT RESEARCH Product research is performed by engineers and other scien-
facts

figures tists to develop new products or to discover improvements for existing products.
There are two types of product research—pure research and applied research.
Pure research is done without a specific product in mind. Researchers in many
companies are continually searching for new processes, materials, or ideas. They
J. D. Power and Associates is an are experts in specific areas, such as biology, chemistry, robotics, electronics, or
internationally recognized mar- energy sources. They conduct experiments and tests in order to make discoveries
keting information firm. Auto- that might lead to new products.
motive studies are the product Many products we use today have been developed as a result of such re-
for which the company is best search. The latest computer technology, life-saving drugs, energy-efficient appli-
known. These consumer opin- ances and homes, and improved food products have resulted from pure research
ion studies measure customer projects. Many of the products we consume have been changed and improved
satisfaction from vehicle pur- through chemical research. Some examples are low-calorie sweeteners, meat
chase through five years of substitutes made from soybean products, and vitamin-enhanced soft drinks. In-
ownership. Automobile manu- sulation used in beverage coolers and nonstick surfaces on cooking utensils and
facturers are provided with razor blades are products that have been developed through research conducted
information that helps them by scientists involved in the space program.
anticipate and respond to Universities, medical research facilities, and government-sponsored research
changes in the time-sensitive programs are heavily involved in pure research. Because of those efforts, we will
automobile industry. likely see products in the near future that use energy more efficiently, apply laser

514