Marketing Research Paper: Economics of Innovation for Online Shopping

Economics of Innovation for Online Shopping
Name:
Institution:
Course:
Instructor:
Date:
Economics of innovation for online shopping
Innovation is creating new products and services to meet market demands and increase its competitive advantage (Mazzucato & Semieniuk 2017). The process can also entail improving existing systems. A significant type of innovation is the radical change to services that originate from research and development. Innovations facilitate response to unmet customer needs and mostly rely on ideas of new services obtained from articulate research and development. The development process ensures the transformation of ideas to new commercialized products and services. Unlike most businesses, large companies face higher risks and consequences of failing to innovate, as observed in the past decade with large companies like Nokia (Neubert 2019). Innovation calls for proactive managers who are always curious and attentive. According to economist Joseph Schumpeter, innovation aims to destroy present enterprises and create new market opportunities.
The research is about Gap Inc. advancing online shopping by creating a virtual dressing room through virtual reality (VR) technology. The innovations enable shoppers to try on clothes via the VR fitting room. Unlike regular online shopping, customers not only look at photos of clothes but determines whether the size fits or not. The process reduces anxiety and gives shoppers an inherent feeling of satisfaction. A similar kind of technological innovation in the fashion industry is the live try-on makeup at the Sephora APP (Macchion et al. 2017). The rationale for funding this type of technological innovation is to meet specific customer requirements and enhance the firm's financial benefits.
The innovation process
The introduction of new products like VR technology for online shopping is central to economic performance; thus, empirical evidence exists to confirm the link between long-term economic growth and innovation. The continuous process of the invention involves sponsors, strategic approaches, operational techniques, and assessment stages. Strategic processes entail stakeholders' training on culture change management and effective communication management (Mazzucato & Semieniuk 2017). Additionally, the working process facilitates cost-benefit analysis, risk assessment, and implementation of stipulated roadmaps to establish new products' efficient development. Evaluation of innovation maturity and analysis of current to future progress development is necessary for economic growth; therefore, Consideration of the actors in the innovation process is equally important. Players in new product development include policymakers, consultants, and research institutions. Financial actors and intermediaries offer insight and knowledge in innovation management support.
In addition to research and development, innovation is affected by a wide range of factors, including policy change. The rising competition stimulates new products and services tailored to meet market demand (Neubert 2019). Increased customer expectations demand continuous innovation for the improvement of the quality of life. New ideas and technologies spread quickly globally; the...