Question

Describe what a consumer input technology is. Is the production of a regular commodity good like a pencil a consumer input technology? Why or why not?

Answer 1

A consumer input technology is basically capturing consumer's expectations and preferences with regard to new product or an existing one.A very detailed market research activity is carried out before the launch of a new product and it involves various stages such as idea generation,R & D,testing, sampling and final launch and then after sales experiance.It is required because now markets have become global and it means all the firms are in direct competition with one another to provide a better product so what the customer actually wants in a product has become the main focus of the companies.

It pays to include consumers in the innovation process because based on their inputs, a product goes into an important enhancement process which increases it's demand and it helps to lauch a new brand or the existing one and increases the satisfaction of the consumers which will bring success to the business.

The production of a regular commodity good like a pencil is also a consumer input technology because the cost of manufacturing a pencil requires various inputs such as the raw materials used-wood, graphite, various parts to assemble, leads, erasers which drives the level of investment required, setting the factory,market and affects the cost per unit and also maintin the quality of the pencil. A pencil can also include yellow writing pencils and children's coloring pencils and with increase in international trade, the competition has increased and a pencil manufacturer would likely to have consumers in the innovation process to have an advantage over others pencil manufacturers.