20 August Changing Economic Characteristics (...price...)

[Paul Terlemezian]

WIth the previous innovation strategies there was a need to create a new product that was the first or that improved on an existing competitive product.

 

This strategy takes an existing product and changes the market by pricing it differently. As a result - new customers are created.

 

Here are some examples:

 

Auto leasing vs. Auto purchase.

Unlimited long distance packages vs. Pay per minutes of actual calls

Health insurance with minimal co-pays, variable deductibles and annual limits

 

What would a customer (internal or external) be willing to pay for training if:

 

1, The course materials were leased rather than purchased?

2. Training was available for a fee unrelated to consumption

3. Training could be purchased much like insurance (monthly base fee, co-pay and annual limits?)