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lead users Customers who are good at generating new product ideas or applications of products line extension occurs when a company comes out with another model based on the same platform and brand as one of its other products Concept testing involves running the idea of the offering by potential consumers focus groups groups of 8-12 consumers gather and react to the concept depth interviews individuals are presented with the concept and react to it individually Process feasibility the degree to which the company can make and service the product financial feasibility new offering's ability to make money investment risk possibility that the company will fail to earn appropriate return on the money and effort opportunity risk risk that there is a better idea that gets ignored because the firm has invested in the idea at hand Quality function deployment (QFD) process whereby a company begins with the customer's desired benefits and then designs an offering that delivers those benefits alpha testing lab testing beta testing actual customers make sure the offering works under real-world conditions rolling launch offering is made available to certain markets first and then other markets later market test complete launch of a product's marketing plan to ensure that it reaches buyers, gets positive feedback, and generates sales of the product or service Product Life cycle (PLC) includes the stages the product goes through after development, from introduction to the end of the product Introduction stage first stage in product life cycle penetration pricing strategy low initial price to encourage many customers to try a product skimming pricing strategy high initial price to recoup the investment relted to its development and marketing growth stage characterized by increasing sales, more competitors, and higher profits maturity stage sales of a product typically begin to level off. downsize decrease amount in package decline stage sales decrease and continue to drop to lwer levels