The Impact of Product Innovation on Sales Volumes of Consumer Goods
Studies have shown that application of innovation in products and marketing as strategy is important to the survival of a firm. However, only few companies are adopting this concept as a major strategy due to their obliviousness to its imminent contribution to the corporate goal. Many of the early adopters of this concept are also failing to achieve the most from it due to their lack of proper understanding of its fundamental and benefits. This study analysed empirically the impact of product innovation on sales volume of consumer goods using Philips consumer electronics, a division of Philips B.V as a case study. Identified hypothesis concerning the relationship between product innovation and the company corporate goal were tested with the use of telephone interviews and questionnaire to stimulate responses from staff of the firm and the consumer of its products. Analysing of the responses obtained from the field study showed that lack of product innovation could affect the organisation’s profit and consumer satisfaction because of its great impact on consumers' buying decision. Monitoring and responding accordingly to changes in consumers’ taste will ensure success in product innovation. Evidently, adoption of product innovation can lead to increase in sales volume of a firm’s product. The finding of this research work will be useful to the firm used as a case study in regards to better development of its innovation funnel with feedback from market trends and consumer dynamic needs. Although, this research work used a single company for analysis, however the result of the findings can be adequately applied to other firms especially firms within the same industry.
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