INTERPRETING THE SOURCES OF MARKET VALUE IN A CAPITAL GOODS MARKET - RESEARCH-AND-DEVELOPMENT MANAGEMENT IN INDUSTRIAL SENSORS

This paper presents an integrated model for evaluating purchasers' per ceptions of science-based products. The model combines a new approach to benchmarking, known as technometrics, that provides a quantitative profile of a product's key attributes, with direct and indirect method s for measuring buyers' perceptions regarding the relative importance of product attributes as a source of value. A new measure for the dema nd orientation is proposed, which shows the extent to which a product' s 'supply' of characteristics matches the 'demand' for them in the mar ket place. The model is illustrated using several types of industrial pressure sensors. The paper also demonstrates how the integrated model may be made effective for quality function deployment (QFD) during th e R&D phase.