Question

1. what are some advantages and disadvantages to big companies of inviting customers to suggest new product ideas?

Answer 1

The advantages and disadvantages of big companies inviting customers for suggestions are as follows:

Advantages:

1. Customer Acquisition:

The customer acquisition becomes easy since the product is as per the requirements of the customers.

2. Understanding customer needs:

The customer needs can be understood better. This can help in the acquisition of a higher market share.

3. Customer Loyalty:

The loyalty of the customer can be attained by providing them the customized product of their choice.

Disadvantages:

1. High customization cost:

The cost of providing the customized product would be higher since it would require to must more expertise.

2. High product lines:

There would be an increase in the number of product lines since various products would be made by the company. It would have to maintain the product life cycle of various products.

3. Increased delivery time:

The delivery time to the customer may increase since the product would have to made according to customer satisfaction which may impact the satisfaction level of the customer.