First the cost of technology is plummeting causing

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: DVD players, keyboards, and radio.18 Technology’s Impact on Customer Value Advances in technology are having important effects on marketing. First, the cost of technology is plummeting, causing the customer value assessment of technology-based products to focus on other dimensions such as quality, service, and relationships. When Plaxo introduced its address book software, it gave the product away at no charge, reasoning that satisfied customers would later buy upgrades and related products. A similar approach is now used by many cellular telephone vendors, who charge little for the telephone if the purchase leads to a telephone service contract.19 Technology also provides value through the development of new products. Many automobile manufacturers now offer customers a navigation system that uses satellite signals to help the driver reach any destination. Under development are radarlike collision avoidance systems that disengage cruise control, reduce the engine speed, and even apply the brakes.20 Other new products likely to be available soon include a “smart ski” with an embedded microprocessor that will adjust the flexibility of the ski to snow conditions; injectable health monitors that will send glucose, oxygen, and other clinical information to a wristwatch-l...
View Full Document

This document was uploaded on 01/30/2014.

Ask a homework question - tutors are online