Abstract

This study explores technological factors influencing the development of functional food products. The specific aim was to investigate if the concept of a dominant design holds true for functional foods. By using consumer acceptance as the measure of product dominance, it is postulated that market pressure inherent to functional foods becomes established by the perceived value to consumers. This value is due to the inherent and documented health advantages, taste, user convenience and competitive price. Switching costs, which create barriers to entry, for functional foods are due to the establishment of a technological solution, patenting, meeting regulatory approval and brand assets in connection to marketing. It is also postulated that in the development of functional foods, a product innovation phase leads into process innovation alternatives. These alternatives arise from different precursors of dominant designs.

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