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Product Life Pattern And Customer Perception

The global market and the technology are expanding day by day, therefore the business community getting more and much more competitive. The companies are now searching for new ways to invent more competitive advantages. Advancement is vitally significant for any business. The creative idea for business and for new product development is to enrich the prevailing system and business model. Changes in the factors of product life pattern affect the business and the potency of the firm depends upon how they are responding into the changes with the innovation in strategic orientation before their challengers. As well as customer belief like product lifestyle, design, social status also offers a great impact on choosing something. As overall economy is changing the social status and other requirements of living and demand is changing. As for example while a low income market start growing sometimes the life cycle of a product become shorten then some products get obsolete and sometimes demand of new product develops. Customer notion in almost all of the cases immediately influences the Product life cycle and thus innovation is essential. Because if business does not cope with this situation it'll become difficult for them to survive in the marketplace and to deal with this changes. Therefore business development strategy must be vibrant and up at this point. On the other hand as product life cycle influenced by the client perception it also changes because of various factors such as existence of alternative product, changes in demand, technical development etc. To make it through on the market place business also need to have close observation on the changes in the product life pattern and develop the strategy in a way that it becomes easy to handle the changes. Paul Steffens and Maria Kaya 2008 cited, product life routine is trusted as a managerial tool that may be estimated from the entire sales pattern and competitive dynamics and the theory of adoption in intro and growth level the role and affect of consumer was forgotten. But every stage of product life cycle is directly affected by the client belief because the factors of customer notion are also are influential factors in product life circuit. According to Paul Steffens and Maria Kaya (2008) PLC work as a holistic, conceptual framework that may be a used to fix marketing strategy over the product's life pattern and product life circuit model can be defined into four stages: Invention  ' Bulk  ' Repeat  ' Alternative. These variables straight underlie on the client styles. As the market's competitive economy changes, reconsiderations of the competitive environment of the organization and better positioning these factors are extremely important, because if one of these factors goes out of control all the areas of the business will be influenced. Better competition only will not depends producing new product and services but also depends on the knowledge of innovation and the means of using the technology strategy in a powerful manner. Business creativity strategy continues a close vision on the reliable innovation plan of the organizations, this not only provide a competitive advantages of the business but also make the demand of the product in an perfect position and improve the growth of the business. A better technology strategy also increases the time of the life span cycle of the product that refers to an optimum profitable position for the business enterprise.

Customer perception has direct impact on the business advancement strategy. It changes frequently the top features of the merchandise or services must be revised or change to handle the existing demand of the market. This is a factor that escalates the competitive effectiveness of the business and a location where invention strategy is essential. Relating to Booz, Allen, and Hamilton (1982), as the success of a private firm is measured on the sales and revenue growth as success of sales and earnings growth will depend on the ability to meet modified demand, hence the firms need to provide more emphasis on innovation technique to meet the demand of the stockholders. It really is barely possible to answer in the changes in the factors of customer belief and offer product and services as per the new adjusted demand scheduled to insufficient proper innovation. Introducing new product and services is not only very important to organizational development and efficiency but and yes it bears risky for the business enterprise. Booz, Allen, and Hamilton (1982) also cited that, many services and services are unsuccessful in the market because of lack of effective technology strategy.

This research will attempt to determine how the changes of the factors in product life pattern and customer conception will effect on the business enterprise strategy and just why the strategy have to be innovative.


Product Life Pattern, Business Advancement Strategy, Consumer Belief.

Problem affirmation:

This paper will attempt to discover the following problems:

  • How business creativity strategy effected by changes on product life routine and customer notion?
  • Why product life circuit and customer understanding changes or activate business creativity strategy?
  • When product life pattern and customer conception stimulate business technology strategy?


The aim of this newspaper is to discover a positive romance of business advancement strategy with the changes of the factors of product life circuit and customer perception.


This research will be conducted to fulfill the following objectives:

  • To critically review the related theory of PLC and business technology strategy.
  • To explore the potency of PLC and business strategy of Nokia Organization.
  • To evaluate how customer perception changes over time and how will it really impact on the business strategy.
  • To create a model that stand for how changing factors of PLC and consumer conception affect development strategy.
  • To make advice to increase the product advancement strategy based on customer perception.

Literature Review

A brief literature of product life circuit:

According to Kotler and Armstrong (2005), 'product life pattern is sales and expansion of something over its lifetime. Product life cycle involves five periods as follows:

In the product development level, the maker or company confirms a fresh product idea and started to think about all the related issues with marketing. On this stage sales of the business remain zero and only investment occurs.

In the launch level, new product is presented in the market and starts poor sales and progress for the merchandise.

While something comes to a rise stage it gets fast market identification and boost the earnings of the developer.

A product involves maturity level when most of the potential buyers choose the product as a result sales, expansion and profit slowdown in this stage. Many opponents also arise sometimes and it drives the merchandise towards the decrease stage.

In this previous stage of product life cycle sales land and income of the marketers also decrease dramatically.

This product life routine is generalized because some products introduce and then just drop. Some has long maturity level, so all the products do not land in this routine. ' Product life routine (PLC) is one of the most controversial and enduring ideas of marketing however this model has been working as important marketing planning and strategy tools for over 30 years. Product life routine was widely presented by Levitt's in 1965 in Harvard Business Review article. It also draws the interest of early on critics Dhalla and Yuseph in 1976. Regarding to Steven Klepper (1996), there are various factors that constitute product life circuit. For example Oliver Williamson (1975, pp. 215-216) has described products development can be recognized in an early exploratory level, an intermediate development level, and a mature stage. Within the levels of product life cycle the management, marketing, and making strategies are revised as per the current situation. In 1996 Klepper come out the new sizing of product life cycle that is the evolution of the firm. That means the amount of firm joined in the industry has a great effect on the merchandise life pattern. Gort and Klepper (1982) found that 46 services were introduced in the last century plus they failed due to growth of the amount of independent company. Klepper (1996) gives emphasis on the innovation technique for competing with the merchandise life cycle. Corresponding to Day (1981) and Hunt (1983), product life routine has been criticized for some time because of lacking of stable theoretical demo. Day (1981) and Gardner (1987) argued that, diffusion model proved helpful as a simple tool to fortify the theory of PLC.

A brief literature on Customer Belief:

Customer understanding now comes with broad and different dimension. Relating to Slywotzky (1996), now the common perception is increasing and providing superior customer value will boost the value of the organization. Delivering quality value to the client enumerate the monetary growth of the value of the business which also enumerate the well worth of the owners. Positive belief of the clients towards the business increase brand image of the organization and that is the ideal goal of the organization. Keller (1993; 1998) argued that, brand conception is mirrored by the brand association which is detained in the customer's memory. Some important meanings of customer belief are given below to truly have a clear understanding onto it.

According to Zeithaml (1988), customer notion is a judgment of customer on a utility of a product of what's given and against that what is received. On the other hand Anderson, Jain, and Chintagunta (1993, p. 5) described customer value as, value of something that customer gets as a couple of economic, technical, service, and interpersonal benefits in trade of price of the merchandise taking things to consider of the other products or services.

For understanding the individual stimuli business have to be concerned with psychometrics. Audretsch and Feldman (1996) argued, to find out the similarity among existing stimuli and new stimuli perceptual maps can be produced from multi-dimensional scaling method. Now client satisfaction and conception becomes one of the most common performance options. Understanding customer belief and respond corresponding that give a company a competitive advantage and research and development as well as advancement activities fosters with the belief of having a close eye on the customers rather than competition. Butz and Goodstein (1996, p. 63) argued that, an emotional bonding has been proven with a person they become brand faithful and hardly switch the product.

A brief books on Business Advancement strategy:

Strategy is often used in many companies for making themselves more organized and competitive by positioning its products and services. Strategy permits a company to guard and operate them available on the market with a distinctive competitive position. And if think about today's economic position companies must think about to do something not used to contend effectively and proficiently in today's marketplace. As the market is now become global and the number of competitors is increasing in alarming rate they are continuously approaching with new ideas and features because of their product therefore it becomes very very important to the companies to take action new. So innovation is currently becomes a substantial area of the business strategy.

According to Amabile, (1998), Invention is thought as the successful execution of inventive ideas in a organization. Product development predicated on idea which eventually focuses on something innovation boosts consumer tool. In authenticity, on the other hands, it seems improbable that consumer utility actually boosts if a product innovation is introduces to the market. Customer may well not notice the growth of the new product unless the new product is not promoted at all.

Today innovation does not only are a symbol of services or services, but also focus on home based business plan. The style of business development is all about how precisely the product or services is created or the way they are payed for. Such as Yahoo, all the ad budget the service as an outcome the users or the clients do not have to pay them. The style chain ZARA, they have got different business development by getting the clothing lines in the shop for some weeks, afterword they change their clothing brand for the next some weeks. This company is able to improvise with the new suggestions to attract the clients.

It has been argued by Granstrand et al. (1997) that creativity does not necessarily decrease the focus on the primary competencies of the business, rather than the management of the business should not confuse know-how with product technology as a rule of thumb to avoid such a possibility. This is relevant to the mobile phone company, where they have to take extra good care to cope with the know-how and the product innovation individually.

Literature review on Impact of PLC and Customer notion on business advancement:

From the sooner area of the literature review it is clearly found that product life cycle, customer notion, and business invention strategy is very much indeed important for executing the business enterprise activities successfully and efficiently. Now for interacting with the objectives of this paper the literature work on the impact of product life circuit and customer belief on business advancement strategy are exemplified in this part. Klepper (1996) has discovered three ground breaking activities with the functioning of product life circuit. The first one is the fact that innovative activities are incredibly much suitable in the earliest stages of product life circuit. Second is, in the first and growth stage innovation activities are occurred to meet up with the real demand of the consumers and the last you are to lengthen the maturity stage and to compete with the opponents with a highly effective manner the innovation activities are extremely suitable.

Steffens and Kaya (2008) argued, in the long run of 1981 market analysts discovered that product life pattern needs further development and research to build up its platform it becomes difficulties for many analysts. In 1989 Lambkin and Day come with their significant work that conceptually expanded product life circuit. Corresponding to Day (1981) and Gardner (1987), as a marketing tool, product life pattern specified sales design and learning the value of innovation, market framework, dynamics, competitive environment are contained in the product life pattern model. Golder and Tellies (2004) says, now product life cycle is recognized as a concept which adopts and includes information cascades. Steffens and Kaya (2008) argued, however some researcher still now concentrate on the sales habits, PLC shapes etc. This paper will try to concentrate on the areas of product life circuit, customer perception and business invention strategy are tightly related based on the theory.

Now days the business enterprise must consider their technology activities that happen to be followed by the customer perceptions. Utterback (1993) said that, Facts from the literature signifies that about 40% to 60% new successful inventions were made from the necessity of the customers. Relating to Woodruff (1997), to understand the client needs now the supervisor need to provide emphasis on the customer satisfaction model (CSM) to emerge the "tone of voice of the customer" in to the product development and development work. Dutka (1994) argued that, Reasons for failing a product or service generally happened due to lack of including client satisfaction to their goal and strategy; do not respond correctly with the client satisfaction model. In today's perception it is essential for the business to deliver maximum customer value with the product quality which enables the organization to gain competitive advantages. It must have to consent to adopt and deliver maximum customer value requires extensive knowledge about market segments and goal customers. The organization should act in response this efficiently in any other case obtaining vast knowledge about markets and aim for customers will all use vain. This may only be averted if the way of responding to deliver the product or services regarding with their need. This is actually the place where development is very much indeed necessary. Because to produce product or services business need specific invention strategy and product can't be changed in a while as the demand of the client is obviously changing. So the organization must change or invent something or service that will fulfill the need and demand of the client for a long period of your energy.

In the time of the globalization the business need to compete with depends upon and the clients also spread all over the world. In this situation innovation strategy plays a essential role for operating the activities successfully. As the most effective goal of the business is to earn gain providing product or services towards the customers here they have to consider two matters is every product has a particular life and another one is exactly what customers want. If business want to increase the amount of their product they need to consider on the customer demand and want; as the need of customers is definitely changing so the business also have to provide a close eye to point out the changes also to handle the changes having a solid and effective development strategy is very much indeed necessary. Customer conception can effect product life routine as the demand for something can be transformed which can shorten the life span of that specific product and according to the changing demand new features need to add with the merchandise and services while technology strategy can make the product or services as the demand of customers by adding new features. Relating to While Klepper (1996) and Audretsch (1995), Success of business depends upon who innovates and exactly how much invention activities are carried out?. Other issue that should be considered as the number of the opponents is huge and they're coming up with new idea and development to draw in more market show which make the customer having more bargaining ability and new creativity and features allures them. In like manner compete with the existing market strategy innovation is an integral to gain competitive edge.

Customer notion can straight impact both on the product life routine and technology on the other hands elements of product life routine also impact on the creativity strategy; because development always tries to check on and make an equilibrium with the client demand and product life cycle. These three factors are carefully interrelated if we think on the framework of the business enterprise advancement strategy; while business need to construct their technology strategy they need to give focus on the market condition, economic aspects, lifestyle, communal status, rivals strategy must be directly considered. Alternatively, while designing the merchandise life cycle with the help of innovation organization also needs to consider the life span of the merchandise, overall flexibility in changes, scientific availability, and success etc. for doing these activities extensive research and development activities will be necessary.

According to Klepper (1996), the impact of market performance and structure as time passes on something is different regarding to its industrial organization, framework and performance; and the characteristics of the industry is shaped and determined by firm's cost function and obstacles to accessibility. But Mueller (1986) argued that, without considering some exceptions of the businesses whose are existing in the same industry is irrelevant. Klepper (1996) argued that, by taking into consideration the embedding differences over firm's functions expansion in result is a matter of at the mercy of firm's increasing marginal cost and the capacities of effecting on creativity process. While firm is considering advancement for a product in its life pattern they must associate its cost with the activities, sometimes recurrent innovation can boost the marginal cost of the product and reduce the success of the organization. Determining the length of maturity level is vital as it differs for various reasons like customer perception, technical obsolesce etc. Golder and Tellis (2004) have recognized several reasons for changes in product life circuit:

Customer durable face a definite takeoff while sales reach over 45% per annum after that sales slowdown and decrease about 15%.

Profitability of slowdown of the merchandise life is favorably associated with slower growth of market, price lowering, and higher penetration.

While a fresh or substitute product involves the market typically 34% slowdown occurs in the product demand.


As a researcher the next hypothesis can be discovered:

H1: Quick changes in the product attributes over last couple of years as customers flavor changes with varied culture.

H2: Technology facilitated more development and increasing rate of product obsolescence resulting changes in the PLC strategy.

H3: Growing craze of open up market economy is the reason of development.


Research strategy is the path which accomplish with the study aim and objective. The centre point of any research is to data gather and the examination. Saunders et al. (2009) explained this centre point as a centre of onion which includes different layers that need to be peeled away to find yourself in the centre point. (i. e. data collection and evaluation).

Research method

In order to attain the aim of the analysis both qualitative and quantitative methods will be used. In this newspaper researcher will give attention to a particular product Nokia Corporation as test product to serve the purposes of the research. To satisfy the objectives of the research the movements of innovation, development, product life cycle and customer understanding will be analyzed. In addition, it requires conducting an exploratory case study research on Nokia Organization. Secondly this newspaper will try to develop a model to learn the sign of changes of factors of product life circuit and customer conception based on case study of the Nokia Firm.

Data collection

For executing this research efficiently researcher need to concentrate on both the main and secondary data. As the research will be conducted on Nokia Company which is supplier of scientific product the main target customer of the type of product are young people and baby boomers. To collect the data about product life pattern researcher will focus on supplementary data and mail questionnaire towards respondents.

A two-phase approach of data collection will be required for the existing study. Major data will be accumulated in both the phases of data collection. Within the first phase in-depth face-to-face personal interview with open-ended questionnaire will be more effective setting of data collection. Furthermore mail and cell phone survey will be used to justify the reliability of data if needed. In the second stage of data collection a survey will be conducted with a closed-ended questionnaire. For performing the research Extra data will be gathered from various documentary options such as journals, Internet sources, company annual reviews and local govt. , semi govt. , other international publications, and Nokia Organization.


The population for this research will select from Nokia Corporation, distribution center, Nokia wall plug, and different sales centre of Nokia product. Convenience sampling process will be followed in selecting human population because of this research. Sample will be determined arbitrarily from management level, executive level, and customer level. For sample analysis London area will be picked where there are 1 stores of Nokia. 1 distribution center and 1 sales centre are situated among this the researcher will review 50%. From each centre it will choose 10 respondents arbitrarily to collect information because of this research.


The data collection procedure for PLC and customer understanding on creativity strategy is expected to test in London. Though it is difficult enough to utilize all the population related to our test researcher will need 50% of outlets and sales centre as sample this will cover the amount of significance of data.


This research will built up knowledge about the product life pattern and customer conception on development strategy. The researcher has link with get all the relevant information to perform this statement. The collected data and the theoretical backdrop will pursue this review by better understanding of PLC and customer perception on business advancement strategy.

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