[Pricing Innovative Products]

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of “Pricing Innovative Products” in a holistic context. The main focus of the research is on “Pricing Innovative Products” and its relation with “Innovation in the products”. The research also analyzes many aspects of “Pricing Innovative Products” and tries to gauge its effect on “pricing of the products”.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 01: INTRODUCTION1

Research Field1

Innovation in Corporations: the Quest for Modernity2

The Process of Innovation2

Characteristics of Entrepreneurs3

Innovation: New Technologies4

The Situation of the orgaNizations with New Technologies4

The Worker with the New Reality5

Process Innovation6

Types of Innovation7

Purpose of Research8

Objectives8

Research Question8

Sub questions9

CHAPTER 02: LITERATURE REVIEW10

Consumer Behavior Models10

External Environmental Variables that Affect Behavior10

Personal Factors12

Other Factors12

Individual Determinants12

Personality and Self Concept13

Buyers-Based Pricing / Customer Value- Based Pricing17

New Product18

Skimming Pricing Strategy18

Limitations of Price Skimming22

Penetration pricing23

Experience Curve Pricing25

Competitive Pricing26

Defining Characteristics of a New Product or Service28

Individual Variables30

Situational Factors31

New Product Pricing Model34

The Theoretical Framework of Research and Key Concepts36

What is Innovation?38

Theories on Innovation39

Product Innovation42

Reasons for Innovation42

Sources of Innovation42

Advantages42

CHAPTER 03: METHODOLOGY46

The Research Process46

Search Technique48

Literature Search49

Inclusion and Exclusion Criteria50

Search terms - key terms50

Additional Online searches50

Management51

Search Rationale51

Critical Appraisal Tool51

CHAPTER 04: THE DATA ANALYSIS SECTION53

Adoption of innovations by consumers54

Qualitative Analysis57

Nothing Better than a Good Theory59

Endless Opportunities61

Two examples of nontraditional62

What Cases Highlight Breaking Innovation in Developing Countries?64

How can Companies in the Developing World make their Limitations into Advantages?64

Is the Source of Innovation is the Scarcity of Capital?64

How to Enter a Process of Breaking Innovation?65

What is the Role of Government in Innovation?65

Motivation for the Sake of Innovation66

Budget - not the Most Important67

The Problem with the Estimate68

X-rays to Innovation70

Decision Process73

CHAPTER 05: SUMMARY, DISCUSSION, AND RECOMMENDATIONS79

REFLECTIVE REPORT80

Recollection of Experiences80

Personal Feelings from the Experience81

REFERENCES82

LIST OF FIGURES

Figure 1: Market skimming (Geoff Lancaster “Marketing management”1999)20

Figure 2: Penetration Pricing (Geoff Lancaster “Marketing Management”)25

Figure 3: New Product Pricing Model34

CHAPTER 01: INTRODUCTION

Research Field

New products are launched every year, many of them do not provide incremental income or distributors saw the significant cost of SEO and de-referencing, neither producers saw substantial investments. It is noteworthy that several new products are being recalled at the first three years of launch and the survival rate is estimated between 20 and 30%. In this sense, the remarkable increase in the number of innovations on the one hand, and the exponential failure rate of new products on the other hand, have attracted the attention of many researchers in marketing to decrypt the variables inherent to the behavior of consumers from these new products or services. (Anderson 2001 61) These consumers are constantly confronted with draconian laws for their well being and their wallets are waiting to be "Seduced" by new products and ...