G. Kalyanaram et V. Krishnan, DELIBERATE PRODUCT DEFINITION - CUSTOMIZING THE PRODUCT DEFINITION PROCESS, Journal of marketing research, 34(2), 1997, pp. 276-285
The process of product definition, during which a firm establishes the
product specifications, has a vital influence on the success of a pro
duct but has attracted little attention from researchers. Conventional
wisdom stipulates that a firm should finalize its specifications earl
y in the product development process. However, in industries facing ra
pid technological change, stiff competition, and uncertain customer ne
eds, specifications set too early could become outdated by the time of
market launch, thereby decreasing the product's benefits to the custo
mer. The authors discuss an alternative approach, in which a firm dela
ys commitment to product specifications and finalizes them just in tim
e for the market launch after careful deliberation, thereby benefiting
from the evolution of core technologies and customer preferences. Bec
ause such an approach introduces new managerial challenges, it would b
e appropriate only under certain circumstances. The authors develop a
simple model of the product definition process that offers insights ab
out how a firm should customize the process to suit its needs. They ca
pture these insights as a managerial framework and illustrate them wit
h industry examples involving the development process for laser printe
rs and network test kits.