Product knowledge

From CEOpedia | Management online
Revision as of 02:42, 18 November 2023 by Sw (talk | contribs) (Text cleaning)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

Product knowledge it's an understanding of the product or service. It covers all information about the use of the product, its functions, features, usage or system requirements[1].

This is the necessary skill that should be owned by the seller. Understanding the product's function allows you to present its benefits in a convincing manner. Customers trust in sellers who are convincing and certain about the product. This trust is being built through a good knowledge of products and services.

The scope of the necessary knowledge about the product depends on position. Product knowledge influences the success of many items, including sales, marketing, training, software development, service and customer support. In each area, managers should check general knowledge about the products of their employees. If the employee is not able to present the benefits of the product to the client and also often makes technical mistakes, its operation requires significant improvement[2].

Product knowledge skills

Positive product knowledge skills[3]:

  • ability to present the benefits of the product
  • ability to solve problems related to the product
  • knowledge of technological advancement areas
  • knowledge about competitors and their activities
  • impact on product improvement

Poor product knowledge skills[4]:

  • redirecting customers to other employees who know the details of the product
  • the need to have an assistant who knows the product
  • misleading customers about the product
  • presenting the client with a product inconsistent with his expectations and needs
  • loss of sales and customer satisfaction caused by a lack of product knowledge

Product knowledge measurement

Well communicated product knowledge can be measured through[5]:

  • the consumer's perception of his knowledge
  • the amount and type of information that the client has stored in his memory
  • the amount of purchases and use made

Consumers product knowledge

Consumers develop knowledge about the product by searching for information and experience related to the use of the product. However, there are several conceptual obstacles that are associated with product experience as a measure of product knowledge[6]:

  1. Product knowledge can be developed by searching for information and using it, so no personal experience is necessary.
  2. The increase in the experience associated with the use of the product may take place without any further increase in knowledge about it.

Examples of Product knowledge

  1. Mobile phones: Understanding the specifications and features of various mobile phones, their cost, and how they compare with similar models.
  2. Software: Knowing how to install, configure and operate a software product, as well as troubleshooting common problems.
  3. Automobiles: Knowing the features and specifications of a car, its make and model, as well as its performance and safety ratings.
  4. Kitchen appliances: Understanding the features, functions, and capabilities of kitchen appliances, how to operate and maintain them, and how to troubleshoot common problems.
  5. Electronics: Knowing the features, functions, and capabilities of electronics such as televisions and audio systems, how to operate and maintain them, and how to troubleshoot common problems.
  6. Cleaning products: Knowing the types of cleaning products available, their uses, and how to properly use them.
  7. Clothing: Knowing the types of clothing available, their styles, and how to care for them.
  8. Cosmetics: Knowing the types of cosmetics available, their intended uses, and how to properly apply them.
  9. Financial products: Understanding the specifics of financial products such as investments, mortgages, and insurance policies.

10. Medical equipment: Knowing the types of medical equipment available, their uses, and how to properly use them.

Advantages of Product knowledge

Product knowledge has many advantages, including:

  • Improved customer service: Having a deep understanding of a product or service enables customer service representatives to provide more effective and efficient customer service. With a thorough understanding of the product, representatives can provide customers with accurate information, quickly resolve any issues, and suggest additional products based on customer needs.
  • Increased sales: By understanding the features and benefits of the product, sales representatives can effectively communicate those to customers and encourage them to buy the product.
  • Improved customer loyalty: Product knowledge helps build trust with customers and encourages them to stay loyal to a company. Customers are more likely to stick with a company if they trust that the company is knowledgeable and can provide them with quality products and services.
  • Increased efficiency: Product knowledge can help streamline production processes and improve workflow. Employees who have a complete understanding of the product and its components can work more efficiently, leading to fewer mistakes and higher quality products.

Limitations of Product knowledge

Product knowledge has certain limitations that must be taken into consideration. These limitations include:

  • Lack of proper training: Without proper training, it is difficult to gain a comprehensive understanding of the product or service and its features. This can lead to issues such as incorrect use, lack of knowledge of all features, and difficulty troubleshooting and resolving customer issues.
  • Time constraints: It takes time to gain a thorough understanding of a product or service. Having a limited amount of time to learn about the product or service can lead to a lack of knowledge and understanding.
  • Point of view: Everyone has different experiences and perspectives, which can lead to different interpretations of the product or service. This can lead to confusion and misunderstandings.
  • Technological limitations: If a product or service is outdated or has limited features, it can limit the user's ability to understand and use the product properly.
  • User experience: User experience is a very important factor in understanding a product or service. If the user has a negative experience, they may be less likely to use the product or service.

Other approaches related to Product knowledge

In order to gain a comprehensive understanding of the product or service, there are other approaches related to product knowledge such as:

  • Technical Knowledge: It is important to understand the technical aspects of the product, such as its components, design, and capabilities.
  • Market Knowledge: It is essential to understand the market for the product, as well as the competitive landscape and the customer's needs.
  • Process Knowledge: It is important to understand the processes and systems involved in producing, delivering, and maintaining the product.
  • Regulatory Knowledge: It is important to understand the regulatory requirements that must be met in order to sell the product.

In summary, product knowledge is an understanding of the product or service, which can be achieved through technical, market, process, and regulatory knowledge.

Footnotes

  1. ↑ (Lin LY., Chen CS., (2006), p.250)
  2. ↑ (Lyster S., Arthur A., (2007), p.170)
  3. ↑ (Lyster S., Arthur A., (2007), p.170)
  4. ↑ (Lyster S., Arthur A., (2007), p.170)
  5. ↑ (Selnes F., (1986), P.67-71)
  6. ↑ (Selnes F., (1986), P.67-71)


Product knowledge — recommended articles
Quality of tourist service — Technical competence — Customer orientation — RATER model — Paraplanning — Job scope — Technological factors — Support process — Productize

References

Author: Aleksandra Bizoń

Retrieved from "https://ceopedia.org/index.php?title=Product_knowledge&oldid=95584"