Icon

BB-151 Selling an Inferior Good with Strange Differentiation v05

[Building Blocks] BB-151 Selling an Inferior Good with Strange Differentiation
Building Blocks (BB-151) - Selling an Inferior Good with Strange DifferentiationStrange Differentiation allows inferior Products to successfully sell into NicheMarkets. A Product may be objectively inferior but offer a unique variation that isvalued by a small number of Customers. Niche strategies work even when theProduct's Price is high relative to the Customers Willingness To Pay (WTP). Competitive Story:When George Jetson gets fired from Spacely Sprockets and starts selling acompeting Product called "Jetson Gears", he decides to test two strategies. Plan Ais to develop a "Me-Too" Product which is similar, but inferior, to the incumbentProducts. Plan B is to develop an even worse Product but focus on a nicheCustomer requirement ignored by both Spacely Sprockets and Cogswell Cogs. Plan A: Jetson Gears "Me-Too"Strategy is to develop a Productthat attempts to get close to theQuality levels offered by theMarket Leaders. Plan B: Jetson Gears "NicheFocus" Strategy is to sacrificesome Product Quality but focuson the unmet needs of a subsetof Niche Customers. Jetson Gears "Niche Focus"Strategy of offering Lower Qualityto most Customers but HigherValue to a Niche Market liftsMarket Share and Profitability.Jetson Gears"Me Too"StrategyWillingness ToPay (WTP) Matrix"Me Too"Market ResultsWillingness ToPay (WTP) MatrixNiche FocusMarket ResultsJetson Gears"Niche Focus"StrategyCollect BothMarket ResultsJetsonGears Table Creator CustomerDistributions Simulate Market CustomerDistributions Simulate Market Table Creator Concatenate Row Filter Building Blocks (BB-151) - Selling an Inferior Good with Strange DifferentiationStrange Differentiation allows inferior Products to successfully sell into NicheMarkets. A Product may be objectively inferior but offer a unique variation that isvalued by a small number of Customers. Niche strategies work even when theProduct's Price is high relative to the Customers Willingness To Pay (WTP). Competitive Story:When George Jetson gets fired from Spacely Sprockets and starts selling acompeting Product called "Jetson Gears", he decides to test two strategies. Plan Ais to develop a "Me-Too" Product which is similar, but inferior, to the incumbentProducts. Plan B is to develop an even worse Product but focus on a nicheCustomer requirement ignored by both Spacely Sprockets and Cogswell Cogs. Plan A: Jetson Gears "Me-Too"Strategy is to develop a Productthat attempts to get close to theQuality levels offered by theMarket Leaders. Plan B: Jetson Gears "NicheFocus" Strategy is to sacrificesome Product Quality but focuson the unmet needs of a subsetof Niche Customers. Jetson Gears "Niche Focus"Strategy of offering Lower Qualityto most Customers but HigherValue to a Niche Market liftsMarket Share and Profitability.Jetson Gears"Me Too"StrategyWillingness ToPay (WTP) Matrix"Me Too"Market ResultsWillingness ToPay (WTP) MatrixNiche FocusMarket ResultsJetson Gears"Niche Focus"StrategyCollect BothMarket ResultsJetsonGearsTable Creator CustomerDistributions Simulate Market CustomerDistributions Simulate Market Table Creator Concatenate Row Filter

Nodes

Extensions

Links

Download

To use this workflow in KNIME, download it from the below URL and open it in KNIME:

Download Workflow
Created by: Berlin
Created at: 2018-12-18
On NodePit since: 2021-02-05
Last update: 2024-05-01
Created with KNIME version: v4.3.0

Deploy, schedule, execute, and monitor your KNIME workflows locally, in the cloud or on-premises – with our brand new NodePit Runner.

Try NodePit Runner!