Development of Mass Markets
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Mass markets typically start to develop when -
- Technological progress makes a product easier to use and increases its value to the average customer
- Key complementary products are developed that do the same
- Companies find ways to reduce production costs allowing them to lower prices
The factors that affect Market growth rates of a product/service are -
- Relative advantage
- Compatibility
- Complexity
- Trialability
- Observability
- Availability of complementary products
Ref : Strategic Management; Hill & Jones; 6e
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