WTP (willingness to pay) Functions as Core Rule for Product Strategy

In this paper we search for criterion for product strategy (here product involves goods and services) in terms of WTP (willingness to pay) functions from demand-based point of view. Therefore, we develop WTP function on the premises that (1) however excellent the product may be, unless it triggers new appealing needs attributes (ANA) and/or basic needs attributes (BNA), it will never be successful, (2) when ANA is to be met, it brings forth customer satisfaction, whereas the lack of BNA gives rise to customer dissatisfaction. Finally this paper provides the condition for a firm`s survival & prosperity as precondition of product strategy based on WTP functions, BEP(break even point) and WTS (willingness to supply).