1. NISHIDH VILAS LAD – 2013176
NITESH BERIWAL – 2013177
NITESH SINGH PATEL – 2013178
NITIN BORATWAR – 2013179
NITIN KUMAR SHUKLA – 2013180
NOOPUR MANDHYAN - 2013181
EAGER SELLERS STONY BUYERS: Understanding
the Psychology of New-Product Adoption
Many innovations fail because consumers irrationally
overvalue the old and companies irrationally
overvalue the new
By JOHNT. GOURVILLE
Text Reference:
Source: Harvard Business Review

2. Learning Objectives
 Introduction
 Psychology of gains and losses
 Building a behavioural framework
 Balancing products and behaviour changes
 Accepting resistance
 Minimising resistance

3. Potentially Successful?
 Webvan Online Grocery business
 Segway Scooters
 Colgate’s kitchen entrees
 DIVX

4. Questions
 Consumer’s perspective
 Producer’s perspective

5. The Psychology of Gains and Losses
 Subjective or perceived value rather than
objective
 Evaluation relative to a reference point
 Improvement as gains and shortcomings as losses
 Loss aversion

8. Building a behavioral framework
 It is built around 3 entities:
BUILDING A BEHAVIOURAL
FRAMEWORK
NEW
PRODUCT OR
TECHNOLOGY
CHANGE
CONSUMER
WHO MUST
ADOPT IT
COMPANY
THAT
DESIGNS IT

9. Innovation and behaviour change

10. BALANCING PRODUCT AND BEHAVIOR CHANGES
1.Easy Sells
2.Sure Failures
3.Long hauls
4.Smash hits

11. BALANCING PRODUCT AND BEHAVIOR CHANGES

12. Accepting Resistance
 Be Patient:
 Strive for 10x Improvement:

13. Contd.
 Eliminate the Old:
 Seek out the Unendowed:

14. MINIMIZING RESISTANCE
 Difficult to get 10X Improvements
 Make behaviorally compatible products
 Find believers

15. The Toyota Way of Minimizing Resistance

16. Apache RTR 180 & It’s Mudguard Innovation

17. Conclusion
 Businesses need to understand the psyche of
consumers
 Quick response to consumer behavior
 Without it, the innovations will continue to
fail