Convenience Innovation

A Performance Innovation change in the product/service package that reduces the customer's cost to acquire and install the product. These innovations change the awareness of the product, the methods of differentiating one product from another, the locations where the purchase may take place, or the services that allow the customer to find, choose and pay for the product.
(See also Performance)

Example 1:

Telephone companies are offering prepaid phone cards. These cards allow customers to get the same price at any phone, even pay phones. (Year 1993 SIC 4813)

Explanation: Convenience. Prepaid phone cards allow customers to purchase telephone usage on any usable telephone, even without correct change.

Example 2:

Borders offers intelligent salespeople. The prospective salespeople must pass a test about knowledge of books and authors. (Year 1990 SIC 5942)

Explanation: Convenience. Borders is a retailer offering the innovation of informed salespeople to help the consumer find and choose appropriate books.

Example 3:

In 1976, Miller boosted its advertising budget from $9 million to $29 million dollars. Between 1975 and 1979, Miller's ad budget increased 724%. Miller was the first in the industry to use extensive marketing. (Year 1976 SIC 2082)

Explanation: Convenience. This innovation increased the customer's awareness of the product.

Example 4:

NutraSweet is essentially a one-product company. NutraSweet has spent heavily to build consumer recognition of its logo. It is also promoting aspartame as a sugar substitute. (Year 1992 SIC 2800)

Explanation: Convenience. These innovations increase the awareness of consumers about the product and help differentiate the product from its competition.

Example 5:

Kroger and Publix Supermarkets had "cookie clubs" that issued membership cards entitling children to free cookies at each store visit. (Year 1998 SIC 5411)

Explanation: Convenience. This innovation increased the consumer's awareness of the supermarkets by enlisting their children as sales people.

Example 6:

In 1990, Birkenstock introduced a slick mail order catalog.
(Year 1991-SIC 3143).

Explanation: The mail order catalog is a Convenience Innovation that creates more awareness of the product and locations where the customer may purchase the product.

Example 7:

Windmere-Durable Holdings, Inc. signed a seven-year agreement, valued at $1.7 billion, to supply consumer and household appliances to Kmart's chain of stores.
(Year 1996-SIC 3634)

Explanation: This Convenience Innovation increases the locations where the customer may purchase a Windmere appliance.

Example 8:

Installation of the HMXpro hardware is easy — cable connections are obvious and well-marked.
(Year 1995-SIC 3575).

Explanation: This Convenience Innovation reduces the customer's cost to install the product.

Example 9:

GM is rolling out its Cadillac Seville with a mailing, offering a videocassette to 170,000 young and affluent customers.
(Year 1991-SIC 3711)

Explanation: This Convenience Innovation increases awareness of the product among attractive market segments.

Example 10:

Mitsubishi had a visibility problem in US for years, so it acquired Value Rent-A-Car to broaden the exposure of its car line.
(Year 1991-SIC 3711).

Explanation: This Convenience Innovation creates more awareness of the company's cars among potential customers.