Crowdsourced BusinessPresentation Design ServicePsychology of Product AdoptionWhy Consumers Don’t BuyApril 28, 2013This do...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 2PPT Lab (www.pptlab.com) is the only crowdso...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 3Contents Overview 4 Prospect Theory and En...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 4This document discusses the psychology of co...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 5The Prospect Theory Value Function illustrat...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 6-$40Reference PointPrinciple #2:Reference po...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7+$100V(+$100)V(-$100)-$40Principle #4:Aversi...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 8People value items in their possession more ...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 9The “freemium” business model takes advantag...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 10Each time a customer gets something new—e.g...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 11Remember also that benefits you get are typ...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 12Here are examples of “gives” and “gets” of ...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13Scenario 3:New Costs and New BenefitsEqual ...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 14The Electric Car is an example of an innova...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 15Curse 2:Clash in PerspectivesInnovator’s Cu...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 16There is a disconnect in knowledge and pers...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 17How do we capture value from innovations?Pr...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 18If our product offers minimal product chang...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19The “Home Run” product offers the best of b...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 20In most cases, behavioral change is inevita...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 21Strategy 1:Brace for the long haulStrategy ...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 22Strategy 4:Find the unendowed—i.e. the firs...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 23Strategy 5:Seek out those who are already “...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 24PPT Lab (www.pptlab.com) is the only crowds...
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Psychology of Consumer Product Adoption

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Some innovations are truly spectacular, but consumers are slow or just refuse to adopt. In fact, over 70% of all new products fail in the marketplace—and innovative, new products fail at an even higher rate.

Why is this the case? And, how do companies overcome this?

This document discusses the psychology of product adoption. Topics include Prospect Theory, Endowment Effect, Loss Aversion, Give and Get Dynamics, Innovator’s Curse, Product-Behavior Value Matrix, among other topics. It distills these concepts into Six Product Launch Strategies.

The foundation of this consumer adoption discussion is around the difference between objective gains and losses vs. subjective gains and losses. This fundamental consumer bias results in psychological switching costs, in addition to economic ones. Studies have shown that, psychologically, losses loom larger than gains by two to three times.

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Transcript of "Psychology of Consumer Product Adoption"

  1. 1. Crowdsourced BusinessPresentation Design ServicePsychology of Product AdoptionWhy Consumers Don’t BuyApril 28, 2013This document presents multiple business frameworks that discuss the psychologyof Consumer Product Adoption. Topics include Prospect Theory, Endowment Effect,Loss Aversion, Give and Get Dynamics, Innovator’s Curse, Product-Behavior ValueMatrix, among other topics. It distills these concepts into Six Product LaunchStrategies.ORIGINAL PROJECT DETAILShttp://pptlab.com/ppt/Why-Consumers-Dont-Buy-The-Psychology-of-New-Product-Adoption-16
  2. 2. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 2PPT Lab (www.pptlab.com) is the only crowdsourcedpresentation design service. Get consulting-qualitypresentations at a fraction of the cost!Each month, we will create well over 50 slides of for our members.As a member, you will drive what business slides we create bysubmitting your own presentation projects to our team. Allpresentations will be created by a team of managementconsultants and follow the Consulting Presentation Framework.www.PPTLab.comsupport@pptlab.com
  3. 3. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 3Contents Overview 4 Prospect Theory and Endowment Effect 7 Give and Get Dynamics 15 Equal Net Benefit Scenarios 19 Innovator’s Curse 26 Product-Behavior Value Matrix 32 Product Launch Strategies 38
  4. 4. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 4This document discusses the psychology of consumer product adoptionExecutive SummarySome innovations are truly spectacular, but consumers are slow or just refuse to adopt. In fact, over70% of all new products fail in the marketplace—and innovative, new products fail at an even higherrate.Why is this the case? And, how do companies overcome this?This document discusses the psychology of product adoption.Topics include Prospect Theory, Endowment Effect, Loss Aversion,Give and Get Dynamics, Innovator’s Curse, Product-BehaviorValue Matrix, among other topics. It distills these concepts intoSix Product Launch Strategies.The foundation of this consumer adoption discussion isaround the difference between objective gains andlosses vs. subjective gains and losses. This fundamentalconsumer bias results in psychological switching costs,in addition to economic ones. Studies have shown that,psychologically, losses loom larger than gains by two tothree times.ObjectiveAxisSubjective Axis+$100V(+$100)V(-$100)-$40Reference Point
  5. 5. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 5The Prospect Theory Value Function illustrates the consumer bias bydisplaying the relationship between subjective gains and objective gainsProspect Theory – Value FunctionFrom the Prospect Theory Value Function, we can ascertain 4 insightful principles.ObjectiveGainsObjectiveLossesSubjectiveGainsSubjectiveLosses+$100V(+$100)V(-$100)-$40Refers topsychologicalimpact• In this example, when weevaluate gains, the subjective(i.e. psychological) gainmatches the actual, objectivegain• But, when we evaluate theloss, even though it is only-$40 in reality, psychologically,it is equivalent to a $100 loss• Thus, in this example , eventhough the Net ObjectiveValue is $60, the NetSubjective Value is $0Reference PointThis is the currentwealth stateSource: Prospect Theory: An Analysis of Decision under Risk, KahnemanTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  6. 6. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 6-$40Reference PointPrinciple #2:Reference points matterProspect Theory – Principle #2Reference points matter, because the same result may be considered a “loss” for oneconsumer and “gain” for a different consumer.• “Gains” and “losses” are evaluated with respect to some reference point• This reference point is currently the person’ status quo, i.e. the person’s currentstate of wealth or being• Relative to this status quo, additions to the state of being are viewed as gainsand subtractions to that state are viewed as losses• In a market, providing a new benefit is a gain and removing a benefit is a loss• Likewise, decreasing an existing cost is a gain and adding a new cost is aloss• It is important to note that different people—i.e. different consumers—havedifferent status quos—i.e. different reference points• For instance, if the average price of a gallon of gas in the US is $3.50, whilethe average price in the UK is $10• Therefore, if a typical US consumer goes to a gas station charging $5, he willbe outraged, while a UK consumer will be ecstaticSource: Prospect Theory: An Analysis of Decision under Risk, KahnemanTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  7. 7. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7+$100V(+$100)V(-$100)-$40Principle #4:Aversion to lossesProspect Theory – Principle #4• This is perhaps the most important principle—consumers do nottreat comparable sized gains and losses the same• In other words, being forced to give up a specific benefit createssignificantly more pain than getting the same benefit creates pleasure• Studies show that “losses” typically prove to be 2-3 times morepainful than comparably sized “gains” prove pleasurable• This asymmetry is known as “loss aversion”• Loss aversion is exhibited when dealing with money (e.g. asgambling), as well as for apartments/homes, hunting licenses,coffee mugs, and most other market goodsMoral of the story: losses loom larger than gains.This steeper slopeindicates theasymmetric behaviorof loss aversionSource: Prospect Theory: An Analysis of Decision under Risk, KahnemanTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  8. 8. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 8People value items in their possession more than items not in theirpossessionThe Endowment EffectThe implication is you are more likely to spend more (e.g. money, time, effort) to keepsomething you have than to obtain something for the first time.People value items in their possession (or part of their endowment) more than they value itemsnot in their possession—this is known as the Endowment Effect.Pause Live TVV(Pause Live TV)V(-Pause Live TV)-Pause Live TVWHEN WE CURRENTLY DO HAVE ITPause Live TVV(Pause Live TV)V(-Pause Live TV)-Pause Live TVWHEN WE CURRENTLY DON’T HAVE ITPerson currently doesNOT have TIVO/DVRPerson currently DOEShave TIVO/DVRSource: Toward a Positive Theory of Consumer Choice, KahnemanTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  9. 9. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 9The “freemium” business model takes advantage of the Endowment EffectFreemium ModelThis business model is effective because it changes the customer’s point of referenceto one where he needs to give up a benefit.Freemium is a business model, where an offering is provided for free, but money is charged forenhanced functionality. Another version of this model is where the offering is provided for free fora limited, trial period.SMALL MEDIUM ENTERPRISE      $0 $10 $100• This business model is popularamong Internet SaaS providers• The Prospect Theory alsoexplains why it’s more difficult toconvince a customer to spendthat first dollar than all futurespendTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  10. 10. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 10Each time a customer gets something new—e.g. our new product—he alsohas to give something upGive vs. GetThe objective value of the new product needs to exceed the objective value of theexisting product by at least 3X—preferably 10X.• With any new market offering,there are “give” and “get” dynamicsat play• We are forcing a customer to giveup an existing benefit (the existingmarket solution) and, in return, geta new benefit (our new offering)• By Prospect Theory andEndowment Effect, we knowbenefits given up loom 2-3 timesgreater than the benefits to begainedWhat does this imply?• For a new product offering to be perceived as betterthan its predecessor, it must be significantly better toovercome consumer biasesPSYCHO-LOGICALOBJECTIVE=THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  11. 11. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 11Remember also that benefits you get are typically delayed, uncertain, anddifficult to quantifyAdditional ConsiderationsAll these factors further hinder adoption and contribute to the “chasm” to cross priorto reaching the market majority.TIMINGCERTAINTYABILITY TOQUANTIFYImmediate DelayedCertain UncertainEasily quantifiedHard to quantify (e.g.convenience, quality) for aeasily quantified cost (e.g.money)“Gives” are… “Gets” are…Source: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  12. 12. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 12Here are examples of “gives” and “gets” of various recent innovationsExamples – “Gives” and “Gets” of InnovationsDVR/TIVO (Digital Recorders) Ability to play rentals Easy recordingElectric Cars Easy refueling Environmental friendlinessOnline Grocery Ability to select freshest Home deliveryVideo Rentals by Mail Spontaneity Increased selectionNew Drugs Low cost Fewer side effectsSatellite Radio Free music Better selectionNew Medical Procedures Comfort with procedure Better outcomesWind Energy Unobstructed view Clean, renewable energyINNOVATIONWhat you give up What you getVSVSVSVSVSVSVSVSSource: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  13. 13. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13Scenario 3:New Costs and New BenefitsEqual Net Benefit ScenariosMost new products fall under this scenario.Costs BenefitsSCENARIO 3• In this last scenario, there are both costs and benefits—the added benefits outweigh the additional costsand the net benefit is the same as the previous 2 scenarios• From a rational perspective, this scenario is equivalent to the others—but from a psychologicalperspective, this scenario offers much less benefits than the others• Asking customers to make this type of tradeoff will often prove fatal to the company, since we now knowlosses loom greater than gains• This tradeoff oftentimes is a large contributing factor a product launch’s failureTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  14. 14. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 14The Electric Car is an example of an innovation that falls underthe Scenario 3 modelCase Example: Electric Car• Let’s consider the adoption of the electric car, which has long been proclaimed as a replacement for thegasoline-powered car• Gains include:• Energy efficiency• Lower cost of ownership• Less pollution• Losses (i.e. what the driver wil be giving up) include:• Size• Convenience• Cruising range• Since the driver is used to size, convenience, and cruising range to be part of his status quo (i.e. hisreference point), these losses will be overweighted by his innate psychological consumer bias• On the contrary, the benefits of energy efficiency, lower operating cost, less pollution are benefits thatwill be underweighted• Thus, the psychological tradeoffs strongly favor the existing gas-powered car• No matter the benefits, the losses, unless addressed directly, will greatly hinder adoptionCosts BenefitsSCENARIO 3THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  15. 15. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 15Curse 2:Clash in PerspectivesInnovator’s Curse – Clash inPerspectives Self-Selection Clash in Perspectives Curse of Knowledge321• The status quo for the typical customer will be that which the customer currently knows—this status quois likely different from the innovator, who is fully invested in his innovation• Imagine being on the development team of a new product—during the development process, youbecome intimately familiar with the product, with all of its benefit, and it becomes part of your statusquo• This difference in perspectives serves to magnify the gap between the developer and the typicalconsumer—whereas the typical consumer outweighs the benefits of the existing product to the innovationby a factor of 2-3X, the innovator outweighs the benefits of the innovation by a factor of 2-3X• This results in a potential compounded bias of 9XCONSUMER’S VIEW NEUTRAL VIEW DEVELOPER’S VIEWV ( New | Old ) V ( New ) V ( Old | New )< <Consumer’s Endowment Bias(3:1 Underweighting)Developer’s Endowment Bias(3:1 Overweighting)Compounded Bias of 9XAndy Grove has stated that for rapid,widespread adoption, a new product hasto offer 10X improvement over theincumbent alternativeTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  16. 16. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 16There is a disconnect in knowledge and perspective between the innovatorand customerInnovator’s Curse – Curse ofKnowledge (2 of 2) Self-Selection Clash in Perspectives Curse of Knowledge321INSIDER’S VIEWWhat’s the innovator’s profile? 5, 10, 20 years of experience with productor technology Benefits/needs are obvious Fully trusts product A self-selected believer Status quo includes new featuresOUTSIDER’S VIEWWhat’s the customer’s profile? Seeing product for 1sttime Needs are not obvious Skeptical of claims Moderate valuation of promised benefits Status quo includes existing featuresKNOWLEDGE ANDPERSPECTIVE DISCONNECTThere problem here is not the customer’s failure to “understand”—but the innovator’sfailure to anticipate this predictable lack of understanding.THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  17. 17. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 17How do we capture value from innovations?Product-Behavior Value MatrixTINKERINGDEADZONEHOMERUNLONGHAULLow HighLowHighValue CreationValueCapturingProduct changerequiredBehavioralchangerequired• Innovations create valuethrough product changes• Product changes oftenrequire behavioral changes• There problem is productadoption, from the principlesdiscussed, is hindered by aneed for behavioral change• This dynamic results in a 2x2matrix, known as theProduct-Behavior ValueMatrix• A “Home Run” product willmaximize value creation(product changes), whileminimizing value capturing(behavioral changes)Source: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  18. 18. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 18If our product offers minimal product change, but requireshigh behavior change… maybe we should think twiceProduct-Behavior Value Matrix – Dead ZoneTINKERINGDEADZONEHOMERUNLONGHAUL• “Dead Zone” products, as the name suggests, should be avoided by companies—in order words,companies should avoid creating products that require high behavioral change, but offers little productchange• The Dvorak keyboard was an innovation that attempted to replace the traditional QWERTY keyword• While it offered faster typing speeds, the initial behavioral change hurdle of learning an entirely newkeyboard configuration was too great• Plus, since people could type fast enough with the QWERTY keyboard, any increase to typing speedswith a new keyboard would only be marginal• In terms of product change, it was minimal, since it only required rearranging the keys on the keyboard• Even objectively evaluated, the tradeoff of a “Dead Zone” is undesirable—when taking into account thatlosses loom larger than gains by 2-3X, the tradeoff is incomprehensibleSource: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  19. 19. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19The “Home Run” product offers the best of both worlds—high product change, nominal behavior changeProduct-Behavior Value Matrix – Home RunTINKERINGDEADZONEHOMERUNLONGHAUL• “Home Run” products are the best of both worlds—offering great product change, but requiring minimalbehavioral change• These products stand the greatest chance of both short-term and long-term success• Value is created by offering a fundamentally new way of achieving some goal• Value is captured by limiting the change required of customers• An example would be the hybrid-electric vehicle (HEV), also just called the hybrid car• These vehicles boost gas mileage by as much as 100%• There are no benefits given up and only limited additional costs are incurred (which is the premiumpurchase price)• These cars also require no behavioral change—they look, drive, and refuel like any other car on theroadSource: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  20. 20. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 20In most cases, behavioral change is inevitable—here are 6 product launchstrategies that accept the fact that customers will show resistanceProduct Launch StrategiesFor most innovations, behavioral change is inevitable—and thus,adoption resistance is inevitable.There are 6 broad strategies that companies can adopt, depending no whether they want to acceptresistance or minimize resistance.ACCEPT RESISTANCE MINIMIZE RESISTANCEBrace for the LongHaulThe 10XImprovementMake It BehaviorallyCompatibleSeek out theUnendowedFindBelieversEliminatethe Old1 2 3 45 6• If behavior change is a given for your innovation, thenit is wise to accept resistance and manage itaccordingly• The strategies that fall within accepting resistance maybe unattractive or impractical—in such cases, there isa need to focus on minimizing resistanceSource: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  21. 21. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 21Strategy 1:Brace for the long haulStrategy – Brace for the Long HaulIn the Product Lifecycle Curve, there is often a need to “cross the chasm” to reach theEarly Majority—this chasm is particularly wide for Long Haul products.The 10XImprovementBrace for theLong HaulMake ItBehaviorallyCompatibleSeek out theUnendowedFindBelieversEliminatethe Old• The simplest strategy for dealing with consumer resistance is toaccept it and brace for the slow adoption known as the Long Haul• While this may be difficult to do, a firm can be successful with thisstrategy• But, a firm must recognize that this is the strategy they haveadopted—i.e. it must forecast its demand and growth accordingly• Examples of companies that failed to do this include TiVo andWebvan• Examples of companies that have achieved slow but steadyadoption:• ESPN, took 25 years to reach 80% of U.S. households• Telephone, VCR, PCTINKERINGDEADZONEHOMERUNLONGHAULSource: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  22. 22. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 22Strategy 4:Find the unendowed—i.e. the first time buyersStrategy – Seek Out the UnendowedIt may be easier to launch in an emerging market than an established one—emergingmarkets (i.e. BRICS nations) are filled with first time buyers.The 10XImprovementBrace for theLong HaulMake ItBehaviorallyCompatibleSeek out theUnendowedFindBelieversEliminatethe Old• To minimize or eliminate behavior change, companies can seek out customers who are not currentlyendowed with the existing product—i.e. first time buyers• The first time buyer do not have preset biases over benefits lost and new costs incurred• The first time buyer’s status quo is neutral• In 1900, George Eastman introduced his $1 Kodak Brownie camera by targeting first-time buyers, notprofessional photographers and serious amateurs (i.e. existing customer base)• The professional photographer and serious amateur came to detest the Kodak Brownie, because itoffered a set of benefits they had learned to live without (e.g. convenience, ease of use) andsacrificed benefits they were used to (e.g. picture quality)Source: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  23. 23. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 23Strategy 5:Seek out those who are already “believers”Strategy – Find BelieversThis thinking is captured in Clayton Christensen’s concept of “disruptive technology.”The 10XImprovementBrace for theLong HaulMake ItBehaviorallyCompatibleSeek out theUnendowedFindBelieversEliminatethe Old• Companies can seek out customers that either greatly value the benefits to be gained or do not valuethe benefits given up• For instance, here are some things fuel cell vehicle manufacturers could do:• The company could target consumers who are environmentally conscious• The company could target consumers who live in a community where a central refueling station ismore practical—e.g. consider an island community, where an entire day’s travel might only takethe owner 10 miles• In these communities, convenient refueling is probably valued less and emission-freetransportation value more• For many of these reasons, Iceland (an island community) is at the forefront of developing a fuelcell societySource: Why Consumers Don’t Buy: The Psychology of New Product Adoption, HBR, 2003THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  24. 24. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 24PPT Lab (www.pptlab.com) is the only crowdsourcedpresentation design service. Get consulting-qualitypresentations at a fraction of the cost!Each month, we will create well over 50 slides of for our members.As a member, you will drive what business slides we create bysubmitting your own presentation projects to our team. Allpresentations will be created by a team of managementconsultants and follow the Consulting Presentation Framework.www.PPTLab.comsupport@pptlab.com

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