CHAPTER 7 Conceptualizing Products and Services Using the FAD Template The previous chapters have focused on learning the basic concepts related to product differentiation in the context of monopolistic competition. The focus of this chapter is learning-by-doing. We will use techniques to help transform a nagging idea about a new product to be more explicit and real. The tool for completing this task is called the FAD (features, attributes, and design) template. The FAD template is used to identify the features and attributes that can be used for product and service differentiation. The first part of the chapter will introduce the key concepts necessary to understand and motivate the use of the FAD template. The FAD template will then be introduced and used to demonstrate and structure the devel- opment of important attributes and features of a new product or service. Features, Attributes, Form, Design, Function, and Meaning are Interrelated Concepts Here are some definitions and concepts that can be used to understand how products and services can be differentiated: · An attribute is used to describe the characteristics or properties of something. · A feature is often described as a prominent attribute. · A function is what something does. · Form is the external experience or shape. · Design involves all the above. · Meaning involves all the above plus the relationship of the product or service to emotional and psychosocial needs.