2.

In what circumstances might a market pull approach or technology push approach to new product design be the best approach New product development is a crucial part of the business. New products provide growth opportunity and competitive advantage for a firm. Increasingly there is a challenge to introduce new product more quickly without scarifying quality. Product design follows from the development of a business strategy. The business strategy will include a value preposition that define the target market, the differentiation of the product and why the customer should buy the product. The new product design reflect the business strategy, and the strategy is adjusted to fit the new product design. There are three fundamental way to introduce new product. These approach are called market pull, technology push and inter-functional. The explanation below focus on market pull and technology push as it is required by question. Market pull approach: According to this view, the market is the primary basis for determining the product a firm should make, with little regard for existing technology. A firm should make what it can sell. Customer needs are determined, and then the firm organized the resources and processes needed to supply the customer. The market will pull through the products that are made. Von Hippel, (1994; 1998) state that drawing on customer knowledge in product development should enable firm to develop products and services that provide more value and are superior in solving customer problems. Yli-Renko et al., 2001 state that customer involvement should enable the supplier to develop improved functional requirements, modify product design to reduce production costs , or develop a design that meets the special needs and problems of customers to a greater extent.

Technology push: In this view the technology is the primary determinant of the product the firm should make, with little regard to the market. The firm should pursue a technology based advantage by developing superior technologies and product. The products then are pushed into the market, and marketing job is to create demand for these superior products. Since the product have technology, the will have natural advantage in the market and the customers will want to buy them The growing popularity of technology push has made it important to understand the key determinants of open-system adoption P.Y.K Chau & P.Y Tam (2000) found out that organization size had the largest impact on the decision. Migration cost was the

next greatest influence. Organization would be less likely to adopt the new technology, unless existing systems appeared to be unsatisfactory.