product churning


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product churning

the continuous introduction of NEW PRODUCTS by a firm in order to maintain its COMPETITIVE ADVANTAGE.
References in periodicals archive ?
Such product churning activity is not limited only to packaged goods, but applies as well to consumer electronics.
As with product churning, it creates very high fixed costs for manufacturers, which must invest heavily -- in information-based networks, financial support, and extensive salesforces -- to lock in these channels.
Test marketing, a mainstay of the US system, is quite limited in Japan because product churning is commonly used as a sort of "real" test marketing tool.
This only makes the shelf space competition for new products worse and intensifies product churning.
Think, for instance, of the product churning in Japanese markets -- that relentless process by which competitors introduce a seemingly continual flow of product variants with new combination of features.
These less tangible sources of advantage -- skills based on product churning, say or on vision -- cannot easily be set down in a work-study analysis.