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Why Great New Products Fail

Book Description

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?