HBR Guide to Making Better Decisions

Introduction

You’re tasked with creating a product that will bring new revenue streams to your company and also raise brand awareness within the market. Your team has come up with a few options and narrowed down the list to two: the first, a more advanced, higher-priced version of your staple product to encourage existing customers to buy the latest version of something they already love; and the second, a new, untested product type that will allow your company to enter new markets.

Building off of a trusted product may feel like the safer choice. The higher price point will result in more revenue, and you already have an established customer base. The new product, though, could bring in additional customers and provide opportunities for publicity, ...