The management team had done enough research to quantify the size of the market. This is because the idea of the introduction of a smart card to customers shows that the management was confident that the card will be accepted. The fact that the card has several advantages to its users resulted in increased demand by individuals in different sections of the supply chain. For example, the consumers believed that the card will secure their cash as it goes electronic with a secured password. Therefore, they preferred subscribing for a smart card because, regardless of where their banks are located from the shopping malls, they can shop anytime. This convenience is the key factor that encourages most consumers to have a smartcard.
The management must have considered the security of merchants when money handling is concerned. This means that when multiple buyers shop in the shopping malls using cash, the owners of these shops remain at risk of losing the money to gangsters. The smart card will assure them of security because when shoppers use electronic money to purchase goods, the money transfers to merchants count directly hence reducing the risks associated with handling large sums of cash.
The management had put all these factors into consideration before arriving at the decision of introducing the smart card. The market size is large because middle and high-income owners fall into the target market as they do shopping in enormous quantities. Therefore, having them own a smart card would make sense to them bearing in mind that they want security and convenience. Merchants also would consider allowing the use of smart cards as they guarantee them with the security of their money.
How valid was their assessment of probable market acceptance of the product?
The assessment of probable market acceptance of the product was valid since they convinced people of the benefits associated with the smart card. Given that they targeted the right people for this product, the assessment must be valid because all those targeted have the potential of using the card. Reliability is among the aspects used in accessing the acceptance of the product in the market.
In fact, everybody wishes to have reliable means of communication, and access to their money. This product is said to be reliable such that the user can wake up from their sleep and walk to a shopping mall and purchase goods. If consumers are assured that the product will not frustrate them at any one time, then they accept it wholly and start using it to do their shopping.
Every business person aims at reducing costs hence maximizing their profits. For the merchants, the product will have them reduce operational costs involved in handling and securing the revenue generated by sales. Therefore, the use of the smart card will reduce that cost as buyers will be using plastic money, as opposed to cash. Merchants will have to accept the product since its benefits to them translate to massive sums of cash. The issuer of the card will also accept the offer because there are many advantages associated with issuing smart cards to customers. This means that the issuer will be receiving their commissions and other fees related to the issuance and maintenance of the card. Therefore, the assessment of probable acceptance of the product to the market is valid.