April 2016
Intermediate to advanced
7 pages
25m
English
article
Why Great New Products Fail
by Duncan Simester, Srivardhini K. Jha, Ishwardutt Parulkar, Rishikesha T. Krishnan, Charles Dhanaraj, Neil T. Bendle, Charan K. Bagga, Michael A. Stanko, David H. Henard, Byron Hanson
Overview
Too often, great products fail because customers do not recognize the value that they create. Although we now have ample insight into how customers evaluate new products, many companies focus primarily on creating value -- without enough regard to how customers recognize innovations and evaluate new products.
There are only two ways consumers can collect information, the author notes: They can search, or they can infer. Knowing when consumers will search or infer will help you determine which of your innovations customers will recognize.
The Internet has had a profound impact on the way customers evaluate many products. First, it has lowered the cost of search by making information more accessible. Second, the Internet has broadened what is searchable by including customer reviews as well as product features on standard spec sheets.
To ensure that customers will recognize the value your products offer, the author recommends focusing on three questions: Are customers motivated to search? Are they able to search effectively? What cues will customers use to infer value?
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.