Problem Solving
Agenda
PART 1 – PROBLEM-SOLVING
PART 2
PART 3
Productive Thinking Quiz
Concept Evaluation Quiz
ATAR Model Exercise
Number Scrabble
Shark Tank Activity
Concept Testing
Information Processing
Systems
Product Concepts
Dominoe’s Pizza Turnaround
ATAR Model Overview
Perceptual Mapping + Excercise
Discussion: Schedule
Revision
Warm-up Activity
NUMBER SCRABBLE
Number Scrabble Instructions
2 Players
Shuffle number squares and place them face up for both
players to draw from
Take turns drawing numbers one at a time
The first player to obtain 3 numbers that add up to exactly 15
wins the game
Ex: I have 1, 2, 4, and 9. (2 + 4 + 9 = 15)
If neither players have a set of three numbers summing to 15,
it’s a stalemate
Number Scrabble
Discussion
Problem Representation
Problem: A goal or task impeded
by an obstacle
Problem representation: the
construction of an internal
mental framework that suggests
a plan for reaching solution
•Good problem representations
facilitate solution
•Poor problem representations
make solution impossible
The Conscious Self as an
Information Processing System
Information Processing System (IPS): A system
which receives inputs from the environment,
performs calculations on these inputs, and
produces output to the environment
•The conscious self 1) receives sensory input, 2)
interprets them into a series of symbols which
can be modified as needed, and 3) sends signals
to the sensorimotor system for behavior
•Symbol transformations include reading,
writing, and storing symbols (memory),
assigning attributes to symbols, discriminating
between symbols, etc.
Problem Solving Steps
1. Problem presented by
environment
2. Problem representation
1. Initial State
2. Transformations applicable to
initial state
3. Iteration
4. Goal State Reached
3. Output Solution
Two Types of Problem Representations
Set Representation: Given a set, find a member of a set having
properties of the goal state
Ex: Attempting to unlock a safe by using every possible
combination of numbers
◦ Algorithmic approach to problem solving; the problem solver
systematically examines every member of a set until solution is
found
Search Representation: Construct a limited search space which is
likely to contain the goal state. The problem is solved by
searching through this space until a solution is reached.
Ex: Attempting to unlock a safe by listening for a “tick” sound
◦ Heuristic approach to problem solving; theories are used to limit the
information that needs to be searched
Consumer Information Search
1) Consumer faces a problem
2) Problem is represented using a search representation
(Initial State)
3) Consumer searches task environment for solution
(Iterative transformation of symbol structures)
4) Consumer finds your product (Goal State)
1) Remember that your product is a symbol representing solution
5) Consumer purchases your product (Output Solution)
Part 2
Concept Generation and
Evaluation
Warm-up Activity: Shark Tank
https://www.youtube.com/watch?v=OslUfkF1S8s
Patterns in Concept Generation
Innovation process can begin with any 1 of 3 inputs:
1) Customer Need
2) Firm Technology
3) Firm Envisioned Form
Patterns in Concept Generation
Innovation process can begin with any 1 of 3 inputs:
1) Customer Need
Firm develops technology
Firm produces form
2) Firm Technology
Firm finds matching customer need
Firm produces form
3) Firm Envisioned Form
Firm develops technology to produce form
Firm tests with customer to see what benefits are delivered
Product Concept
Products contain all three
inputs
Product Concepts contain at
least two (need, technology,
form)
Concept Evaluation
What is the purpose of concept evaluation?
• Minimize risk
• Maximize probability of success
• Select for commercial viability
• Ensure manufacturing feasibility
• Confirm customer demand
• Verify customer need fulfillment
Concept Test
•Concept testing refers to the process of evaluating
consumer acceptance of a product prior to (or
during) its development
•Ex: Todoist is a time management software
•During its development, marketers paid customers to
try out their software and answer questions
•“How likely would you be to use Todoist in your
everyday life?”
•“How much would you be willing to pay for this
software?”
•“How easy/difficult is it to use this software?”
Continual Evaluation
ATAR Model
Awareness-Trial-Availability-Repeat
Profit = Units Sold X Profit Per Unit
Units Sold = Number of Buying Units X
% of Customers Aware of Product X
% of Customers That Try Product X
% of Customers That Tried and Intend to Purchase X
% of Customers That Repeat Purchase
Part 3
Concept Generation and
Evaluation Part 2
Exercise: ATAR Model
Consider a new smartphone being developed:
• Market size: 10 million people
• 40% Percent awareness after one year
• 30% Percent of aware owners who will try product
• 50% Percent availability at electronics retailers
• 20% Percent buy a second phone
• $50 Profit per cell phone
What is the estimated total profit?
Concept Testing
Objectives:
•Determine consumer
perceptions of the new product
concept
•Evaluate commercial viability
•Collect feedback
Questions to ask customers:
•Does the concept seem unique?
•Would the product solve your
problem(s)?
•How much do you like the idea?
•How likely would you be to
purchase the product?
•How much would you pay for it?
Concept Test - Mail
Here is a tasty, sparkling beverage that quenches thirst, refreshes, and makes the
mouth tingle with a delightful flavor blend of orange, mint, and lime.
It helps adults (and kids too) control weight by reducing the craving for sweets and
between-meal snacks. And, best of all, it contains absolutely no calories.
Comes in 12-ounce cans or bottles and costs 60 cents each.
1. How different, if at all, do you think this diet soft drink would be from other
available products now on the market that might be compared with it?
Very different ( ) ( ) ( ) ( ) Not at all different
2. Assuming you tried the product described above and liked it, about how often
do you think you would buy it?
More than once a week ( ) ( ) ( ) ( ) ( ) ( ) Would never buy it
Concept Test
– Sketch
Concept Test
– Prototype
Interpreting Results
Purchase intension question:
How likely would you be to buy this product?
◦ Definitely would buy
◦ Probably would buy
◦ Might or might not buy
◦ Probably would not buy
◦ Definitely would not buy
Top-two-boxes score: The percentage of participants that select
one of the two top options
Domino’s Pizza Turnaround
https://www.youtube.com/watch?v=AH5R56jILag
Discussion
Perceptual Mapping
Perceptual Maps are graphs
showing differences in
consumers’ perceptions of
competing products
Objective: to understand how
your product is positioned vs.
competing products
Choose two key product
attributes and plot
products/firms along those axes
Perceptual Mapping Exercise