Product Concept
Product Concept
Product Concept
Introduction '
Recentiy there has been a growing body of literature attempting to re-define or
re-Uiink the role of marketing in today's societies (e.g. Gummesson i987; Sheth
etai i988; McGee and Spiro i988; Webster i992; Browniie and Saren i992;
Hunt i994). Tiie forces of change that dictate the re-assessment of the exisUng
marketing theory and prescriptions are weii manifested in the markeUng
iiterature (see for exampie Webster i992; Hunt 1992, 1994; Brown 1995;
Tiiomas i994; Browniie etai 1994; Firat and Venkatesh i995).
In line with the above researchers, we hold Uie view that any attempt to
foster the marketing theory into the new miilennium must re-address and re-
define fundamental concepts that have, hiUierto, guided the deveiopment of tiie
discipline. These concepts/principles include, inter alia, (i) the nature of the
product (be it consumer, industriai or services), (ii) the roie of tlie producer and
customer in Uie production and consumption systems, and (iii) Uie wider context
and deeper meaning of the exchange between and among key actors in Uiese
systems.
(a) it is widely acknowledged that products are consumed for their symbolic
meaning (Zaitman and Wallendorf 1979; Hirschman and Hollbrook 1992).
However, marketing tiieory provides little guidance on iiow this symbolic
meaning is ascribed to products and how it Is 'consumed' (Mick and Buht
1992).
In Uiis paper we attempt to tackle one of the above concepts I.e. that of the
product Tlie purpose of the paper is to put forward a conceptual framework for
understanding the factors that shape the nature of Uie product and discuss iiow
this framework can be utilized from a marketing perspective. In doing so, our
thinking is strongiy infiuenced by the emerging 'new paradigm' in marketing
theory which adopts a reiaUonal perspecUve towards markeUng phenomena
and their investigation (Gummesson 1987; Webster 1992; Sheth and Parvatlyar
1995). The philosopiiicai underpinnings to which we refer for our reiaUonai
methodoiogy is based on Feuerbacii's (1911) seminal critique of Hegelian
phenomenology, in which he recognises Uie importance of the l-Tliou
relationship for addressing human perceptions, understanding and behaviour.
We piace reiaUonships and 'inter-experiences' wiUi others at Uie centre of our
research philosophy here.
We do not assume, however, that people's reiaUons wiUi others are as
'subjects related to objects' in the nonnai positivlst sense. On the contrary, we
foilow Heideggar (1962) in viewing peopie as active participants in the so-called
'extemal worid', who - In relaUng to others - also engage in a communicative
praxis. Heideggar argued that by pariicipaUng {"Daselrf) in the worid, human
beings both infiuence and are influenced by other peopie and objects wiUi
which they interact The relational perspecUve which we adopt In analysing Uie
product concept is also therefore dynamic, recognising the conUnual changes in
the Inter-experiences In which market actors engage.
In Uiis paper, we explain firstly the extant conceptualization of the product In
the markeUng discipline. Then a criUque is presented that challenges the
legitimacy of this concept in the face of recent UieoreUc and empirical insights.
On the basis of this, we develop a new conceptuai framework and ouUine Its
ImplicaUons within the markeUng discipiine.
Despite the fact that markeUng theory Is predicated on the central role of the
product In the exchange process (KoUer. 1972), few attempts have been made
to answer the question: 'What do we mean by a product?' Most of these have
been In popular marketing text-books without the space to refiect an in-depUi
discussion about the nature of the product
To begin wiUi, all markeUng text-book auUiors stress the importance of
Tlie Nature of the Product in Market RelaUonships '. 447
"The most fundamentai ievel is tiie core product which answers the
question. What is the buyer reaily buying? Every product is really the
packaging of a probleiii-soiving service. The core product Is turned into a
tangible product Tangibie products inay have as many as five
characteristics : a quality level, features, styling, a brand name, and
packaging. Finaiiy a product planner may offer additional services and
benefits Uiat make up an augmented product".
Later, KoUer (1988) advanced his Uiree level concept of a product to a five level
concept nameiy the core benefit the generic product the expected product the
augmented product and the potentiai product (see Figure i). Similariy. Levitt
(i969) suggested that tiie product can be viewed at severai ieveis whicii inciude
the core or generic, the expected, tiie auginented and the potenUai levei.
A Critique
Expected product
,-
Generic product
be a futiie exercise, especially in cases where the product does not foiiow the
identification of a need but gives rise to the need or benefit (e.g. Sony's
Waikman or as is the case wiUi many scientific discoveries).
Moreover, we contend that attempts to isoiate the core benefit may iead to
simplification of a compiex piienomenon witii the risk of diverting marketers'
attention away from the customer's wider consumption activity in which he/she
is invoived. In Uiis respect the oid concept of the hotel as a front desk and
rooms to rent whicii can provide rest and sieep cannot explain the today's
evoiution of hotels as conference centers, providing sports faciiiUes, for dining
and wedding celebrations, sometimes even without a front desk and a
receptionist Although some may view these services In a hotel as supporting
the 'core benefits' (e.g. sieep and rest) we view them differentiy. We regard this
evoluUon as a refiecUon of the high complexity inherent - even in what seems to
be a 'sinipiistic' consumption activity. We argue that core needs have been
repiaced by a complex constellation oi" needs/activities, partly dictated by tiie
wider activities in which the individuai expends effort. For the case of the hotel,
visionary hoteliers have managed to tum a necessity (need) into an opportunity
for Uieir customers by breaking away from the core benefit or product and
addressing the wider activiUes in which the individuai participates; in other
words Uie wider context
Tiie
Object
The
Piuri-Signified
Product
The
Supplier
One way in which the buyer views the product is in terms of its expected
advantages. These expected advantages themseives wiil be interpreted from key
relationships the buyer has with either or both the object and the suppiier. For
example, a customer Interprets the object to create the expected uses or
applicaUons to which it could be put even In the absence of the knowledge of
the supplier. Similarly the knowledge of the supplier can create expectaUons of
the advantages of the product before even the object is made (e.g. 'Mercedes-
Benz announces new product launch'...). In either case what is happening is that
buyers are signifying what the product is to them. For example, many Industriai
companies form reiationships with suppliers in order to jointly produce new
products through co-operative R&D. They have formed expectations of the
advantages of a product whose existence is purely imaginary, rather than
physicai at that stage; it is nonetheless a product and a transaction has
occurred!
The meaning of these expected advantages only have relevance for the
buyer in so far as they are related to their percepUons of present and
The Nature of Uie Product in Market ReiaUonships 453
anUcipated needs. capabiiiUes and objecUves. The meaning of Uie product may
be clear, but tiie buyer may see no use for it or may not be able to use that
product These factors further affect their interpretaUon of Uie product in
addition, the buyers' perceptions of Uieir needs. capabiliUes and objectives are
tiiemselves strongly Influenced by the context of the consumption process in its
totality, i.e. cuiture, society, other consumers, objects, suppiiers etc. Tiierefore,
these factors also piay a roie in the buyer's signification process.
We wiii now discuss the direct reiationsiiips from tiie buyer's point of view.
buyers form assumpUons about Uiese which inevitabiy affect Uie image of tlie
product and Uie suppiier. Tiiese assumpUons may concem the safety of producUon
meUiods, Uieir environmentai impact use/abuse of iabour in Uie ilrm, eUiicai
conduct of business pracUces and so on. As iong as Uiese assuiiiptions are not
violated by any contrary infonnation Uiey tend to remain domiant However. Uie
buyer may be inade starkiy aware of Uiem by an event self or comiiiunicated
experience, or word of mouth communicaUon which may act as a 'trigger' of
consciousness mechanism. This can evoke a higli involvement on Uie part of tiie
buyer. For exampie, UK beef consumers' assumpUons about Uie hidden
reiaUonship between animal feed suppliers or famiers and Uielr livestock was
suddenly brought to iminediate awareness by Uie pubiicity about Uie BSE ' scare.
Similarly, in Uie case of Uie Levi Strauss Co. buyers' perceptions of the values
which were communicated to Uiem Uirough tlieir open reiationsiiips with Uie
suppiier and Uie object were those of 'freedom', 'Uie American w a / , 'ciioice', 'weii
made' and 'reliability*, it appears that customers had assumed that tiie hidden
reiaUonsiiip (between Uie suppiier and Uie objecO was consistent wiUi Uie saine
vaiues. The trigger which chalienged these assumpUons was tiie discovery Uiat the
Levi Strauss Co. had a factory in Uie People's Republic of China (see Preece et al..
1995), a State which at that time was considered to be repressive, totaiitarian and
Uie anUUiesis of Levi's communicated vaiues. Tlius. the reiaUonship between Levi
Strauss Co. and Uie object Uirough the production process became an influence on
buyers' percepUons of ttie product In our view. Uie importance of Uiis hidden
relationship becomes cruciai in today's economies where consumers' scepticism
about tiie role of flnns in poiiuUon, nature conservation. eUiical and moral
employment places greater demands upon Uieir operaUons (Cova, 1993). This
reiaUonship between the supplier and the object as perceived by the customers.
has been the focus of attention in a number of recent studies. Tiieir aim lias
been to idenUiy how customer responses to new products are afl'ected by
percepUon of fit with regard to transferabiiity of a firm's skills to the new
product (Smith, i995; Brown and Dacin, 1997). According to Smith (1995). flt
between Uie company and tiie product can affect customers' evaluations of the
product either by infiuencing Uie extent to wiiicii their attitudes for tiie coinpany
are extended to the product, or by faciiitaUng the customer to fomi expectations
about the new product
Having idenUfied tiie reiationships among tiie buyer, the suppiier and the
object in the signification process of the product we now tum our attenUon to
the Levitt's requirement for tiie 'actionable content' of our conceptualization.
within the marketing function". Similarly, Hunt (1994) observed that marketing's
contribuUon to the strategic theory of the firm has been marginalised during Uie
past decades. Indeed prominent authors in the sU*ategy field have abandoned
the rigidities of well-defined, pre-planned strategies and become adherents of a
more fiuid and fiexible conceptuaiizaUon of the firms' strategy (Hamel and
Prahalad 1991; Pettigrew 1992; Mintzberg, 1994). However, marketing sUll
predicates adherence to a simpiisUc logic and fixed notions of the market the
customer and the product
Our conceptualization of the pluri-signified product conUibutes to Uie
strategic discourse of organizations by unveiiing new opportunities for
compeUtive advantage. Indeed, today companies find it very hard to create a
competitive advantage since their products are easily imitated by reverse-
engineering or surpassed by new technoiogy. Yet whereas it is easy for a fimi to
clone the characterisUcs of an object it is very difilcuit to imitate the
relaUonship the customer forms with the supplier. Our concept calls for
Increased attention to the muiUfarious relaUonships In the signification process
of Uie product It suggests platforms for the creation of compeUUve advantage
that rest in the dynamic process of interacUon among the buyer, the suppiier
and the object A criUcal antecedent of this compeUtive advantage is the
reiationship competence of the firm.
In addition, our conceptuaiizaUon of the piuri-signified product ouUlnes the
strategic importance of Uie buyer in the compeUtive arena. Contrary to the
notion that buyers (customers) oniy cany strategic Importance in tenns of
market share, sales figures or purchasing power, we locate their strategic
importance and vaiue in the signification process of the product Therefore, from
a strategic point of view, our concept caiis for a strategic empowering of the
customer base enabling them to signify (appropriate) the product in ways that
create competitive advantage to the finn and addiUonal vaiue for themselves.
We would argue Uiat the real compeUtive advantage of the firm lies not only
In the uniqueness of its products and services, but also in the uniqueness of
what constitutes satisfaction for its customers. The latter Is very hard for
compeUtors to copy, since its uniqueness is based on individuals who in
themseives are unique. Our ongoing research in this field informs us that Uie
reiaUonship between Uie firm and its customers 'invents the future' and gives
rise to 'inter-experiences' which can not oniy 'deliver' satisfaction but actuaily
're-define' what satisfacUon means for the customers and employ Uiem into its
co-creaUon process. In doing so, from a strategic point of view, the firm can re-
define the rules of Uie market game by changing the conceptuaiization of the
fieid, changing the roles of the piayers and providing opportuniUes for new game
plans and moves.
new product ideas are essenUaily the result_of relaUonships This broadens the
search for new product concepts i^om that of traditionai Uieory whicii is based
on the needs and expectations of the customer. It suggests a shirt in attenUon to
the total customers' consumpUon context and Uie relaUonships between the
customer, tiie object and the supplier; over which Uie marketer has aiiegediy
more influence.
Rather than the suppiier iiaving a pureiy reacUve roie in idea generaUon. i.e.
in response to market needs, our frainework reinstates the role of suppliers as a
proacUve force in idea generation in two ways. Firstly, supplier factors partly
dictate the signiflcaUon process of the product concept Secondly. Uie suppiier
iias a strong infiuence on the key reiationships which define tiie product for the
custoiner. Our framework reinforces the role of tiie customer. Whereas in the
past consumers have been perceived as reactive recipients of finished products,
our frainework posits tiieir role as active participants in the dynainic redefinition
of product concepts, wiiicii itseif unveiis opportunities for new product ideas.
Such an approach to tiie generaUon of new product concepts wouid enabie
flrms to appreciate cases where customers buy 'driiis' and not just 'iioies' as the
recent phenomenal coinniercial success if the Dyson's bag-iess vacuum cleaner
attests. In addition, it would enable fimis to realise cases where botli tiie "driil"
and the "hole" represent partiai cognitive processes which, given technoiogical
advances, run the risk of becoming inefficient ways of perfonning a task. A
prime exampie is the fumiture idustry where siiicon technology is increasingly
replacing exisUng processes for putting pieces of wood and metai togeUier.
new product development team. These constraints are much too ofien customer
specific (I.e. in accordance with Uieir requirements derived mainly from an
understanding of their production, financial and market characterisUcs.
However, the role of marketing in the NPD process is not simply to abide by
these constraints but to unveil opporiuniUes for both the firm and its customers
by quesUoning these constraints proactively. Tiiis is in line wiUi the proactive
role of markeUng in the NPD process as envisaged by Gatignon and Robertson
(1989).
have advanced rapidiy; so too iias our empiricai and theoretical body of
knowledge in the marketing discipiine. We contend that our conceptualization
of the product wiiich lies at the iieart of marketing theory, provides new
research directions that can advance our understanding of one of its
fundamentai eiements. , ,
References