Psychology of Product Adoption   46-slide PPT PowerPoint presentation slide deck (PPT)
$39.00


2. ARCHITECT THE RIGHT PRODUCT


What product attributes drive rapid market diffusion and consumer adoption? Tough question.

But, good thing we have the Rogers’ Five Factors framework. Credit goes to Everett Rogers, who also created the Consumer Adoption Curve.

Roger\


Rogers’ Five Factors proposes there are 5 product-based factors that drive adoption.

  • Relative Advantage. This is the degree to which our new product is better than the incumbent. This advantage can be non-economic (e.g. social status, prestige). The greater the relative advantage, the faster the adoption.
  • Compatibility. This factor accounts for the degree to which our product is consistent with the customers’ existing values and experiences. The greater the compatibility, the faster the adoption.
  • Complexity. This is the degree to which our product is difficult to understand and use. The primary way to overcome complexity is education, but it is important to assess how willing the customer is to be educated. The greater the complexity, the slower the adoption.
  • Trialability. This factor measures the degree to which our product can be experimented with on a limited basis. This factor is most important when our product is in the early stage of its lifecycle–when uncertainty about the product’s benefits are at its highest. The greater the trialability, the faster the adoption.
  • Observability. This is the degree to which potential customers can see others using our product. For instance, highly observable products include cars and cell phones. Difficult to observe products include medicines and home appliances. Many companies leverage social media marketing–and specifically target “influencers”—to increase their observability factor. The greater the observability, the faster the adoption.

Let’s walk through an example of this analysis. Look at the telephone. Up through the late 2000s, every home had a phone. It’s something we take for granted, something that’s necessary part of our daily lives, something we can’t imagine living without. One would assume it was adopted very quickly. Yet, the reality proves otherwise...

The telephone was invented by Alexander Graham Bell in 1876. By 1900, 25 years later, it would only be found in 10% of the households in the US. By 1935, 60 years after its invention, it could only be found in 30% of households. In fact, it wasn’t until the 1980s that the telephone reached 90% of US households.

Why was the adoption rate so exceedingly slow for this wonderful, useful invention?

A look at the Five Factors sheds some light. The Relative Advantage for the phone was low when it was introduced. It was expensive–both installation and ongoing fees were high–and you had few people you could call. It was also highly incompatible with the norms of the time. The idea of speaking into a metal box was foreign and frightening. The technology used in the phone was incredibly Complex and difficult to understand. People wondered, can it transmit diseases? Can I get electrocuted? Does it only speak English? Trialability was low—only the very wealthy and businesses had telephones installed. In fact, in its early years, the only factor the telephone had going for it was Observability, since people could see the telephone wire running into a house.


3. UNDERSTAND THE CUSTOMER


If you are targeting the right market with the right marketing mix, have a compelling product that fosters adoption, the third essential element to analyze is the customer. What makes the customer tick? Rogers’ Five Factors touched a bit on this already, but let us take a deeper look into Consumer Psychology.

If you have a great product, but the product adoption is poor, it is imperative to understand some key concepts in behavioral economics. Here are three important principles to be cognizant of.

Principle 1. Losses Loom Larger than Gains

Every new product provides perceived gains and losses for the customer. These gains and losses need not be financial. For example, let’s say you are starting an online grocery store for your municipality. With the promise of groceries delivered to the door, the perceived gains could be convenience, time savings, and effort savings. On the other hand, you are altering the way the customer performs a certain process–buying groceries. This change will translate to perceived losses (i.e. financial and non-financial costs), which can include the inability to handpick produce and meat, delivery fees, and having to be home during the delivery window.

When we look at this objectively, online groceries is a clear superior choice. Convenience, time savings, and effort savings are great value propositions, after all.

However, when the customer evaluates options subjectively, it becomes unclear whether online groceries is still the better choice. In fact, it is likely the customer views online grocery shopping as the poorer choice. This is because losses loom larger than gains.

A consumer has an inherent Consumer Bias. This bias weighs a loss three times that of a benefit. To put it another way, the objective value of a gain needs to exceed the objective value of a loss by three times for the customer to perceive the new product as better than the existing.

What's the solution? One tactic is to apply "the 10X rule."

If losses loom larger than gains, then we need to create a product where the gains greatly dwarf the losses. Create one where the benefits are 10X that of the losses, so that all economic and psychological switching costs are overcome. This is also known as Andy Grove’s 10X Rule. Andy Grove, Intel’s third employee and former CEO, had stated, for widespread adoption, a new product has to offer a 10X improvement over the incumbent product.

Of course, this strategy is easier said than done.

Principle 2. Reference Points Matter

The second principle to understand is different people have different reference points. These reference points matter. The reference point simply refers to the person’s current state of being.

Continuing our online grocer example, the reference point of a typical customer is someone who currently goes to the physical supermarket to pick up groceries. This process may already be part of the customer’s weekly routine. Gains and losses are relative to this state of being.

For two people with different reference points, a gain for one person may be perceived as a loss for the other. To illustrate this concept, let’s look at the price of gas. Assume the average price for a gallon of gas in the US is $3, whereas it’s $10 in the UK. If a US customer came upon a gas station charging $6.50/gallon, she would be furious. If a UK customer came upon the same situation, she would be ecstatic. (Also, note that even though the objective difference is the same for both customers, the US customer’s sentiment would be more affected than that of the UK customer, because losses loom greater than gains.)

Prospect Theory Value Function
The Value Function Illustrates Objective vs. Subjective Values

By understanding your customer’s reference point, you can determine her perceived gains and losses. In most cases, your reference point is different from that of your customer. This is because you have already used and experienced your product, whereas your customer has not. Your product has become part of your state of being. This disparity in judgment is captured in the concept known as the Innovator’s Curse.

What's the solution? One effective strategy is a reference point pivot.

Since reference points dictate how customers perceive gains and losses, it makes sense to seek out customers with favorable reference points. Think about it this way. In one market, your product may have fulfilled the 10X Rule. In another, your same product may be perceived as 10X worse!

During its earlier years, Walmart opened stores only in rural areas to compete against local mom and pops. Compared with these incumbent retailers, Walmart was a clear 10X improvement. If Walmart had started off launching stores in metropolitan areas instead, where large department store chains were already established, Walmart’s growth would have been hindered.

Ideal markets are ones filled with first time buyers. For the first time buyer, her reference point is neutral. She doesn’t have any preconceived biases over existing benefits lost and new costs incurred, because she doesn’t currently use the incumbent solution. Thus, for many products, it is easiest to launch in emerging markets. This is because emerging markets (e.g. BRICS nations) are filled with first time buyers.

Principle 3. Endowment Effect

According to the Endowment Effect, people value items in their possession (i.e. part of their endowment) more than items not in their possession. This is because people are loss averse.

This behavior sheds some light on why losses loom larger than gains. If a customer is already accustomed to an existing product or existing way of doing things, it becomes hard for her to give that up and change–even if the alternative presents greater benefits.

An easy and common method companies leverage to take advantage of this psychological principle is to offer free samples, so the customer gets hooked on their products. Once the customer begins using the product, he or she will appreciate the benefits it offers and is likely to spend money to retain these benefits. This is, in essence, an example of Reference Point Pivot.

Similarly, a popular business model adopted by many Internet SaaS companies is the “freemium” model. In the freemium model, the customer is first presented with a free version of the product. Then, the customer is offered (or forced) to a premium version.

For more information on Behavioral Psychology, take a look at these resources:


4. OPTIMIZE THE CUSTOMER JOURNEY


In most cases, the product you’re selling is not an impulse purchase. The path to purchase is a long process–it’s a journey that can take from several days to several months. This journey is captured in a framework developed by McKinsey & Co called the Customer Decision Journey.

The Customer Decision Journey proposes that the customer goes through four phases in a cyclical process. Each phase represents a potential marketing battleground where companies compete for the customer’s purchase and loyalty.

Customer Decision Journey


These phases along the customer’s journey are:

  • Initial Consideration. When the customer first conceives the notion of buying a product, she will develop an initial set of brands to consider buying. Brands in the initial-consideration set are three times more likely to be purchased than brands that aren’t in it. This means that Brand Awareness is vital. In this phase, we should focus on push marketing.
  • Active Evaluation. In the evaluation phase, the customer is seeking information and shopping around to make an informed purchase decision. She will ask for recommendations from friends and family, read reviews online, go to the store to test out products, and so forth. This phase empowers both the customer and the company. How are companies empowered? Companies have the opportunity to enter the consideration set—and even force out companies in the Initial Consideration Set. Big brands can no longer take their position for granted. In fact, due to this phenomenon, we have seen the successful rise direct-to-consumer startups. A popular influencer or creator with a small team can launch their own brands and compete against established, billion dollar companies. With increased online and social presences, companies are increasing the number of touch points with the customer—thus increasing their influence over the customer’s purchase decision in the Active Evaluation phase.
  • Moment of Purchase. This is the point in time when the customer goes to the retailer and makes the purchase. Even at this late stage of the journey, companies can still influence the purchase. This is done through in-store marketing and influence of store salesmen.
  • Post-purchase Experience. After the purchase, the customer builds expectations based on her experience that will impact her next purchase journey. This creates the circular nature of the journey. In this phase, our goal is to foster customer loyalty, which will drive repeat purchases and word-of-mouth marketing. Likewise, if the customer is dissatisfied with the purchase, she will become a negative influence on the purchase decisions of others. This is not limited to her immediate circle of friends and family either. For instance, she can post a negative review on a prominent website, which will be read by countless potential customers in the Active Evaluation stage.

If our goal is to reach an emerging market, there are certain nuances that should be highlighted and understood. Though the overarching process is the same, the emphasis in marketing is different when comparing a customer in an emerging market versus a customer in an established market. For instance, in an established market, customers often rely on online reviews when making purchase decisions. In emerging markets, online sites are not yet trusted by the customer. Learn more about this topic in this article: Craft a Successful Strategy for Emerging Markets.

For more information on Customer Journey, take a look at these frameworks:


5. MAXIMIZE THE ONLINE EXPERIENCE


The Internet is becoming more and more crucial in the Customer’s Decision Journey. Because of the Internet, the number of customer touch points has increased significantly.

In the online experience, there are 5 categories of customer touch points. They have varying levels of importance along the path to purchase:

  • Paid. This category includes paid display and search advertising.
  • Social. This category refers to interactions with the customer through social media (namely, Facebook, Twitter, LinkedIn, and Youtube).
  • Email. Email marketing typically takes the form of recurring newsletters. Newsletters are essentially the online form of the offline store circular.
  • Referral. This category refers to external websites that “refer” customers to your website.
  • Direct. This refers to your own website. It encompasses the customers who go directly to your website.

Here is the typical flow of online interaction with the customer through her journey. At the start, the goal is to create Brand Awareness. This is typically achieved through investments in paid advertisements. As the customer begins to actively evaluate her various product choices, Social and Email begin to play a more important role. Through social media, companies can directly engage and influence customers. Email marketing is an effective method of building rapport with a customer. Once a customer has subscribed to our newsletter, we can send regular newsletters to constantly remind her of our company and products. The customers that are most likely to make a purchase are Referral and Direct visitors. Afterwards, in the post-purchase phase, Social and Email continue to play important roles in nurturing that customer bond.

Of course, the relationship between the touch point and decision journey varies by industry and varies by geography.

Source: Product Lifecycle, Rogers' Five Factors, Psychology of Product Adoption
[Full source materials below]

Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Log in to unlock full preview.
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Arrow   Click main image to view in full screen.
Product Lifecycle

All products mature through 5 stages of development. The length of each period varies tremendously. Some products have very short cycles, whereas others can take decades or even centuries to go through the cycle. This framework details a 5-phase approach to proper Product Lifecycle Analysis and draws out key strategic insights at each stage of the lifecycle.

Specific topics covered include the Consumer Adoption Curve, Bass Diffusion Model, Lifecycle-Performance Matrix, Strategic Positioning, among others.

 
$39.00


Add to Cart View Details

Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Log in to unlock full preview.
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Arrow   Click main image to view in full screen.
Rogers' Five Factors

Rogers' Five Factors is a framework for analyzing and understanding the diffusion and adoption of product innovations. Whereas the Product Lifecycle (above) focuses on people, Rogers' Five Factors is focuses on the product. This framework proposes that the rate of innovation diffusion is largely driven by 5 product-based factors.

This document explains the Rogers' Five Factors, provides examples, shows how to use this framework in conjunction with the Production Adoption Lifecycle.

 
$39.00


Add to Cart View Details


2. ARCHITECT THE RIGHT PRODUCT


What product attributes drive rapid market diffusion and consumer adoption? Tough question.

But, good thing we have the Rogers’ Five Factors framework. Credit goes to Everett Rogers, who also created the Consumer Adoption Curve.

Roger\


Rogers’ Five Factors proposes there are 5 product-based factors that drive adoption.

  • Relative Advantage. This is the degree to which our new product is better than the incumbent. This advantage can be non-economic (e.g. social status, prestige). The greater the relative advantage, the faster the adoption.
  • Compatibility. This factor accounts for the degree to which our product is consistent with the customers’ existing values and experiences. The greater the compatibility, the faster the adoption.
  • Complexity. This is the degree to which our product is difficult to understand and use. The primary way to overcome complexity is education, but it is important to assess how willing the customer is to be educated. The greater the complexity, the slower the adoption.
  • Trialability. This factor measures the degree to which our product can be experimented with on a limited basis. This factor is most important when our product is in the early stage of its lifecycle–when uncertainty about the product’s benefits are at its highest. The greater the trialability, the faster the adoption.
  • Observability. This is the degree to which potential customers can see others using our product. For instance, highly observable products include cars and cell phones. Difficult to observe products include medicines and home appliances. Many companies leverage social media marketing–and specifically target “influencers”—to increase their observability factor. The greater the observability, the faster the adoption.

Let’s walk through an example of this analysis. Look at the telephone. Up through the late 2000s, every home had a phone. It’s something we take for granted, something that’s necessary part of our daily lives, something we can’t imagine living without. One would assume it was adopted very quickly. Yet, the reality proves otherwise...

The telephone was invented by Alexander Graham Bell in 1876. By 1900, 25 years later, it would only be found in 10% of the households in the US. By 1935, 60 years after its invention, it could only be found in 30% of households. In fact, it wasn’t until the 1980s that the telephone reached 90% of US households.

Why was the adoption rate so exceedingly slow for this wonderful, useful invention?

A look at the Five Factors sheds some light. The Relative Advantage for the phone was low when it was introduced. It was expensive–both installation and ongoing fees were high–and you had few people you could call. It was also highly incompatible with the norms of the time. The idea of speaking into a metal box was foreign and frightening. The technology used in the phone was incredibly Complex and difficult to understand. People wondered, can it transmit diseases? Can I get electrocuted? Does it only speak English? Trialability was low—only the very wealthy and businesses had telephones installed. In fact, in its early years, the only factor the telephone had going for it was Observability, since people could see the telephone wire running into a house.


3. UNDERSTAND THE CUSTOMER


If you are targeting the right market with the right marketing mix, have a compelling product that fosters adoption, the third essential element to analyze is the customer. What makes the customer tick? Rogers’ Five Factors touched a bit on this already, but let us take a deeper look into Consumer Psychology.

If you have a great product, but the product adoption is poor, it is imperative to understand some key concepts in behavioral economics. Here are three important principles to be cognizant of.

Principle 1. Losses Loom Larger than Gains

Every new product provides perceived gains and losses for the customer. These gains and losses need not be financial. For example, let’s say you are starting an online grocery store for your municipality. With the promise of groceries delivered to the door, the perceived gains could be convenience, time savings, and effort savings. On the other hand, you are altering the way the customer performs a certain process–buying groceries. This change will translate to perceived losses (i.e. financial and non-financial costs), which can include the inability to handpick produce and meat, delivery fees, and having to be home during the delivery window.

When we look at this objectively, online groceries is a clear superior choice. Convenience, time savings, and effort savings are great value propositions, after all.

However, when the customer evaluates options subjectively, it becomes unclear whether online groceries is still the better choice. In fact, it is likely the customer views online grocery shopping as the poorer choice. This is because losses loom larger than gains.

A consumer has an inherent Consumer Bias. This bias weighs a loss three times that of a benefit. To put it another way, the objective value of a gain needs to exceed the objective value of a loss by three times for the customer to perceive the new product as better than the existing.

What's the solution? One tactic is to apply "the 10X rule."

If losses loom larger than gains, then we need to create a product where the gains greatly dwarf the losses. Create one where the benefits are 10X that of the losses, so that all economic and psychological switching costs are overcome. This is also known as Andy Grove’s 10X Rule. Andy Grove, Intel’s third employee and former CEO, had stated, for widespread adoption, a new product has to offer a 10X improvement over the incumbent product.

Of course, this strategy is easier said than done.

Principle 2. Reference Points Matter

The second principle to understand is different people have different reference points. These reference points matter. The reference point simply refers to the person’s current state of being.

Continuing our online grocer example, the reference point of a typical customer is someone who currently goes to the physical supermarket to pick up groceries. This process may already be part of the customer’s weekly routine. Gains and losses are relative to this state of being.

For two people with different reference points, a gain for one person may be perceived as a loss for the other. To illustrate this concept, let’s look at the price of gas. Assume the average price for a gallon of gas in the US is $3, whereas it’s $10 in the UK. If a US customer came upon a gas station charging $6.50/gallon, she would be furious. If a UK customer came upon the same situation, she would be ecstatic. (Also, note that even though the objective difference is the same for both customers, the US customer’s sentiment would be more affected than that of the UK customer, because losses loom greater than gains.)

Prospect Theory Value Function
The Value Function Illustrates Objective vs. Subjective Values

By understanding your customer’s reference point, you can determine her perceived gains and losses. In most cases, your reference point is different from that of your customer. This is because you have already used and experienced your product, whereas your customer has not. Your product has become part of your state of being. This disparity in judgment is captured in the concept known as the Innovator’s Curse.

What's the solution? One effective strategy is a reference point pivot.

Since reference points dictate how customers perceive gains and losses, it makes sense to seek out customers with favorable reference points. Think about it this way. In one market, your product may have fulfilled the 10X Rule. In another, your same product may be perceived as 10X worse!

During its earlier years, Walmart opened stores only in rural areas to compete against local mom and pops. Compared with these incumbent retailers, Walmart was a clear 10X improvement. If Walmart had started off launching stores in metropolitan areas instead, where large department store chains were already established, Walmart’s growth would have been hindered.

Ideal markets are ones filled with first time buyers. For the first time buyer, her reference point is neutral. She doesn’t have any preconceived biases over existing benefits lost and new costs incurred, because she doesn’t currently use the incumbent solution. Thus, for many products, it is easiest to launch in emerging markets. This is because emerging markets (e.g. BRICS nations) are filled with first time buyers.

Principle 3. Endowment Effect

According to the Endowment Effect, people value items in their possession (i.e. part of their endowment) more than items not in their possession. This is because people are loss averse.

This behavior sheds some light on why losses loom larger than gains. If a customer is already accustomed to an existing product or existing way of doing things, it becomes hard for her to give that up and change–even if the alternative presents greater benefits.

An easy and common method companies leverage to take advantage of this psychological principle is to offer free samples, so the customer gets hooked on their products. Once the customer begins using the product, he or she will appreciate the benefits it offers and is likely to spend money to retain these benefits. This is, in essence, an example of Reference Point Pivot.

Similarly, a popular business model adopted by many Internet SaaS companies is the “freemium” model. In the freemium model, the customer is first presented with a free version of the product. Then, the customer is offered (or forced) to a premium version.

For more information on Behavioral Psychology, take a look at these resources:


4. OPTIMIZE THE CUSTOMER JOURNEY


In most cases, the product you’re selling is not an impulse purchase. The path to purchase is a long process–it’s a journey that can take from several days to several months. This journey is captured in a framework developed by McKinsey & Co called the Customer Decision Journey.

The Customer Decision Journey proposes that the customer goes through four phases in a cyclical process. Each phase represents a potential marketing battleground where companies compete for the customer’s purchase and loyalty.

Customer Decision Journey


These phases along the customer’s journey are:

  • Initial Consideration. When the customer first conceives the notion of buying a product, she will develop an initial set of brands to consider buying. Brands in the initial-consideration set are three times more likely to be purchased than brands that aren’t in it. This means that Brand Awareness is vital. In this phase, we should focus on push marketing.
  • Active Evaluation. In the evaluation phase, the customer is seeking information and shopping around to make an informed purchase decision. She will ask for recommendations from friends and family, read reviews online, go to the store to test out products, and so forth. This phase empowers both the customer and the company. How are companies empowered? Companies have the opportunity to enter the consideration set—and even force out companies in the Initial Consideration Set. Big brands can no longer take their position for granted. In fact, due to this phenomenon, we have seen the successful rise direct-to-consumer startups. A popular influencer or creator with a small team can launch their own brands and compete against established, billion dollar companies. With increased online and social presences, companies are increasing the number of touch points with the customer—thus increasing their influence over the customer’s purchase decision in the Active Evaluation phase.
  • Moment of Purchase. This is the point in time when the customer goes to the retailer and makes the purchase. Even at this late stage of the journey, companies can still influence the purchase. This is done through in-store marketing and influence of store salesmen.
  • Post-purchase Experience. After the purchase, the customer builds expectations based on her experience that will impact her next purchase journey. This creates the circular nature of the journey. In this phase, our goal is to foster customer loyalty, which will drive repeat purchases and word-of-mouth marketing. Likewise, if the customer is dissatisfied with the purchase, she will become a negative influence on the purchase decisions of others. This is not limited to her immediate circle of friends and family either. For instance, she can post a negative review on a prominent website, which will be read by countless potential customers in the Active Evaluation stage.

If our goal is to reach an emerging market, there are certain nuances that should be highlighted and understood. Though the overarching process is the same, the emphasis in marketing is different when comparing a customer in an emerging market versus a customer in an established market. For instance, in an established market, customers often rely on online reviews when making purchase decisions. In emerging markets, online sites are not yet trusted by the customer. Learn more about this topic in this article: Craft a Successful Strategy for Emerging Markets.

For more information on Customer Journey, take a look at these frameworks:


5. MAXIMIZE THE ONLINE EXPERIENCE


The Internet is becoming more and more crucial in the Customer’s Decision Journey. Because of the Internet, the number of customer touch points has increased significantly.

In the online experience, there are 5 categories of customer touch points. They have varying levels of importance along the path to purchase:

  • Paid. This category includes paid display and search advertising.
  • Social. This category refers to interactions with the customer through social media (namely, Facebook, Twitter, LinkedIn, and Youtube).
  • Email. Email marketing typically takes the form of recurring newsletters. Newsletters are essentially the online form of the offline store circular.
  • Referral. This category refers to external websites that “refer” customers to your website.
  • Direct. This refers to your own website. It encompasses the customers who go directly to your website.

Here is the typical flow of online interaction with the customer through her journey. At the start, the goal is to create Brand Awareness. This is typically achieved through investments in paid advertisements. As the customer begins to actively evaluate her various product choices, Social and Email begin to play a more important role. Through social media, companies can directly engage and influence customers. Email marketing is an effective method of building rapport with a customer. Once a customer has subscribed to our newsletter, we can send regular newsletters to constantly remind her of our company and products. The customers that are most likely to make a purchase are Referral and Direct visitors. Afterwards, in the post-purchase phase, Social and Email continue to play important roles in nurturing that customer bond.

Of course, the relationship between the touch point and decision journey varies by industry and varies by geography.

Source: Product Lifecycle, Rogers' Five Factors, Psychology of Product Adoption
[Full source materials below]

Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Log in to unlock full preview.
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Product Lifecycle (34-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Arrow   Click main image to view in full screen.
Product Lifecycle

All products mature through 5 stages of development. The length of each period varies tremendously. Some products have very short cycles, whereas others can take decades or even centuries to go through the cycle. This framework details a 5-phase approach to proper Product Lifecycle Analysis and draws out key strategic insights at each stage of the lifecycle.

Specific topics covered include the Consumer Adoption Curve, Bass Diffusion Model, Lifecycle-Performance Matrix, Strategic Positioning, among others.

 
$39.00


Add to Cart View Details

Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Log in to unlock full preview.
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Rogers' Five Factors (29-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Arrow   Click main image to view in full screen.
Rogers' Five Factors

Rogers' Five Factors is a framework for analyzing and understanding the diffusion and adoption of product innovations. Whereas the Product Lifecycle (above) focuses on people, Rogers' Five Factors is focuses on the product. This framework proposes that the rate of innovation diffusion is largely driven by 5 product-based factors.

This document explains the Rogers' Five Factors, provides examples, shows how to use this framework in conjunction with the Production Adoption Lifecycle.

 
$39.00


Add to Cart View Details

Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Log in to unlock full preview.
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Psychology of Product Adoption (46-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Arrow   Click main image to view in full screen.
Psychology of Product Adoption

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.

This presentation discusses the topics of Prospect Theory, Endowment Effect, Loss Aversion, Give and Get Dynamics, Innovator's Curse, Product-Behavior Value Matrix, among other topics. It further distills these concepts into Six Product Launch Strategies.

 
$39.00


Add to Cart View Details


Flevy is the world's largest knowledge base on Product Strategy.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Explore the Top 100 Best Practices on Strategy & Transformation


Read Customer Testimonials

 
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
 
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World
 
"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
 
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

– Roderick Cameron, Founding Partner at SGFE Ltd
 
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

– Jim Schoen, Principal at FRC Group
 
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I "

– Nishi Singh, Strategist and MD at NSP Consultants
 
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so "

– Omar Hernán Montes Parra, CEO at Quantum SFE
 
"I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

– Trevor Booth, Partner, Fast Forward Consulting

Case Studies on Product Strategy

Dynamic Pricing Strategy for Boutique Hotel Chain in the Luxury Segment

Scenario: A boutique hotel chain operating within the luxury segment is facing challenges with its current pricing strategy, leading to uneven occupancy rates and revenue fluctuations.

Read Full Case Study

Pricing Strategy Refinement for Education Tech Firm in North America

Scenario: An education technology firm in North America is struggling to effectively price its digital learning platforms.

Read Full Case Study

Dynamic Pricing Strategy for Online Gambling Platform in the European Market

Scenario: An emerging online gambling platform in Europe is facing a strategic challenge with its pricing strategy, struggling to balance profitability and market competitiveness.

Read Full Case Study

Dynamic Pricing Strategy Overhaul for High-End Luxury Retailer

Scenario: The company is a high-end luxury retailer facing stagnation in market share growth due to a static pricing model that has not adapted to evolving consumer behaviors and competitive market dynamics.

Read Full Case Study

Operational Excellence Strategy for Financial Services in Digital Banking

Scenario: A prominent digital banking institution is at a critical juncture in optimizing its customer decision journey, facing a 20% decline in user engagement and a 15% increase in customer acquisition costs over the past year.

Read Full Case Study

Product Strategy Optimization for Wellness Apps in Digital Health

Scenario: A leading digital health wellness app faces a strategic challenge in refining its Product Strategy amidst an increasingly saturated market.

Read Full Case Study

Dynamic Pricing Strategy for Specialty Retailer

Scenario: The company is a specialty retailer in the consumer packaged goods industry, grappling with margin compression in an increasingly competitive landscape.

Read Full Case Study

Product Launch Strategy for Boutique Health and Personal Care Store

Scenario: A mid-size health and personal care store chain specializing in high-end organic products is facing significant challenges with its new product launch strategy.

Read Full Case Study

Dynamic Pricing Strategy for High-End Restaurant Chain

Scenario: A prominent high-end restaurant chain faces challenges in optimizing its pricing strategy to stay competitive while maintaining profitability.

Read Full Case Study

Ecommerce Platform Market Expansion Strategy in Health Supplements

Scenario: The organization is a mid-sized provider of health supplements via an ecommerce platform, focusing on the North American market.

Read Full Case Study

Product Go-to-Market Strategy Redesign for a Consumer Electronics Firm

Scenario: An established consumer electronics firm is struggling to effectively launch its innovative products in a highly competitive market.

Read Full Case Study

Customer Experience Strategy for Boutique Hotel Chain in Leisure and Hospitality

Scenario: A boutique hotel chain, renowned for personalized guest experiences, faces the challenge of adapting customer journey mapping to meet evolving consumer expectations.

Read Full Case Study


FAQs on Product Strategy

How does Customer Journey Mapping integrate with agile methodologies in product and service development?
Integrating Customer Journey Mapping (CJM) with Agile methodologies enhances product and service development through a dynamic, customer-centric approach, prioritizing features based on customer experience and encouraging continuous feedback, leading to improved customer satisfaction and operational performance. [Read full explanation]
How does the integration of Customer Journey Mapping and corporate culture drive organizational change and customer-centric innovation?
Integrating Customer Journey Mapping with corporate culture promotes Organizational Change and Customer-Centric Innovation by aligning Strategy, improving Operational Efficiency, and driving employee engagement towards customer satisfaction and business growth. [Read full explanation]
How do generational differences (e.g., Baby Boomers vs. Gen Z) affect the Consumer Decision Journey, and how should companies adapt their strategies accordingly?
Companies must adapt their Consumer Decision Journey strategies to cater to Baby Boomers' preference for traditional media and in-person experiences and Generation Z's inclination towards digital platforms, social responsibility, and personalized experiences to effectively engage these diverse demographics. [Read full explanation]
What role does employee training play in optimizing the customer decision journey, and how can businesses implement effective training programs?
Employee training is crucial for optimizing the customer decision journey, enhancing customer satisfaction and loyalty through skills development and strategic training programs aligned with company objectives. [Read full explanation]
How can companies leverage AI and machine learning more effectively to predict changes in consumer behavior during the Consumer Decision Journey?
Companies can gain Competitive Advantage by leveraging AI and machine learning to analyze data across the Consumer Decision Journey, enabling personalized marketing strategies and improved customer satisfaction. [Read full explanation]
What impact are global economic fluctuations having on pricing strategies across different industries?
Global economic fluctuations significantly influence pricing strategies in various industries, necessitating businesses to adapt through dynamic pricing, understanding market and consumer behavior changes, and leveraging advanced analytics for competitive advantage and profitability. [Read full explanation]
How are businesses adapting their pricing strategies to cater to the gig economy and freelance market?
Organizations are adapting to the gig economy by implementing Dynamic Pricing, Subscription and Membership Models, and Value-Based Pricing, focusing on flexibility, innovation, and customer-centric approaches to ensure market competitiveness and sustainability. [Read full explanation]
How is the increasing focus on sustainability affecting global pricing strategies in various industries?
The growing emphasis on sustainability is reshaping global pricing strategies, driven by consumer preferences, regulatory pressures, and sustainability costs, leading to higher-priced sustainable products and innovative pricing models across industries. [Read full explanation]
Arrow   Click main image to view in full screen.
Psychology of Product Adoption

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.

This presentation discusses the topics of Prospect Theory, Endowment Effect, Loss Aversion, Give and Get Dynamics, Innovator's Curse, Product-Behavior Value Matrix, among other topics. It further distills these concepts into Six Product Launch Strategies.  

$39.00


Add to Cart View Details


Flevy is the world's largest knowledge base on Product Strategy.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Explore the Top 100 Best Practices on Strategy & Transformation


Read Customer Testimonials

 
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC
 
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
 
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

– M. E., Chief Commercial Officer, International Logistics Service Provider
 
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

– Roderick Cameron, Founding Partner at SGFE Ltd
 
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so "

– Omar Hernán Montes Parra, CEO at Quantum SFE
 
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience

Case Studies on Product Strategy

Dynamic Pricing Strategy for Boutique Hotel Chain in the Luxury Segment

Scenario: A boutique hotel chain operating within the luxury segment is facing challenges with its current pricing strategy, leading to uneven occupancy rates and revenue fluctuations.

Read Full Case Study

Pricing Strategy Refinement for Education Tech Firm in North America

Scenario: An education technology firm in North America is struggling to effectively price its digital learning platforms.

Read Full Case Study

Dynamic Pricing Strategy for Online Gambling Platform in the European Market

Scenario: An emerging online gambling platform in Europe is facing a strategic challenge with its pricing strategy, struggling to balance profitability and market competitiveness.

Read Full Case Study

Dynamic Pricing Strategy Overhaul for High-End Luxury Retailer

Scenario: The company is a high-end luxury retailer facing stagnation in market share growth due to a static pricing model that has not adapted to evolving consumer behaviors and competitive market dynamics.

Read Full Case Study

Operational Excellence Strategy for Financial Services in Digital Banking

Scenario: A prominent digital banking institution is at a critical juncture in optimizing its customer decision journey, facing a 20% decline in user engagement and a 15% increase in customer acquisition costs over the past year.

Read Full Case Study

Product Strategy Optimization for Wellness Apps in Digital Health

Scenario: A leading digital health wellness app faces a strategic challenge in refining its Product Strategy amidst an increasingly saturated market.

Read Full Case Study

Dynamic Pricing Strategy for Specialty Retailer

Scenario: The company is a specialty retailer in the consumer packaged goods industry, grappling with margin compression in an increasingly competitive landscape.

Read Full Case Study

Product Launch Strategy for Boutique Health and Personal Care Store

Scenario: A mid-size health and personal care store chain specializing in high-end organic products is facing significant challenges with its new product launch strategy.

Read Full Case Study

Dynamic Pricing Strategy for High-End Restaurant Chain

Scenario: A prominent high-end restaurant chain faces challenges in optimizing its pricing strategy to stay competitive while maintaining profitability.

Read Full Case Study

Ecommerce Platform Market Expansion Strategy in Health Supplements

Scenario: The organization is a mid-sized provider of health supplements via an ecommerce platform, focusing on the North American market.

Read Full Case Study

Product Go-to-Market Strategy Redesign for a Consumer Electronics Firm

Scenario: An established consumer electronics firm is struggling to effectively launch its innovative products in a highly competitive market.

Read Full Case Study

Customer Experience Strategy for Boutique Hotel Chain in Leisure and Hospitality

Scenario: A boutique hotel chain, renowned for personalized guest experiences, faces the challenge of adapting customer journey mapping to meet evolving consumer expectations.

Read Full Case Study


FAQs on Product Strategy

How does Customer Journey Mapping integrate with agile methodologies in product and service development?
Integrating Customer Journey Mapping (CJM) with Agile methodologies enhances product and service development through a dynamic, customer-centric approach, prioritizing features based on customer experience and encouraging continuous feedback, leading to improved customer satisfaction and operational performance. [Read full explanation]
How does the integration of Customer Journey Mapping and corporate culture drive organizational change and customer-centric innovation?
Integrating Customer Journey Mapping with corporate culture promotes Organizational Change and Customer-Centric Innovation by aligning Strategy, improving Operational Efficiency, and driving employee engagement towards customer satisfaction and business growth. [Read full explanation]
How do generational differences (e.g., Baby Boomers vs. Gen Z) affect the Consumer Decision Journey, and how should companies adapt their strategies accordingly?
Companies must adapt their Consumer Decision Journey strategies to cater to Baby Boomers' preference for traditional media and in-person experiences and Generation Z's inclination towards digital platforms, social responsibility, and personalized experiences to effectively engage these diverse demographics. [Read full explanation]
What role does employee training play in optimizing the customer decision journey, and how can businesses implement effective training programs?
Employee training is crucial for optimizing the customer decision journey, enhancing customer satisfaction and loyalty through skills development and strategic training programs aligned with company objectives. [Read full explanation]
How can companies leverage AI and machine learning more effectively to predict changes in consumer behavior during the Consumer Decision Journey?
Companies can gain Competitive Advantage by leveraging AI and machine learning to analyze data across the Consumer Decision Journey, enabling personalized marketing strategies and improved customer satisfaction. [Read full explanation]
What impact are global economic fluctuations having on pricing strategies across different industries?
Global economic fluctuations significantly influence pricing strategies in various industries, necessitating businesses to adapt through dynamic pricing, understanding market and consumer behavior changes, and leveraging advanced analytics for competitive advantage and profitability. [Read full explanation]
How are businesses adapting their pricing strategies to cater to the gig economy and freelance market?
Organizations are adapting to the gig economy by implementing Dynamic Pricing, Subscription and Membership Models, and Value-Based Pricing, focusing on flexibility, innovation, and customer-centric approaches to ensure market competitiveness and sustainability. [Read full explanation]
How is the increasing focus on sustainability affecting global pricing strategies in various industries?
The growing emphasis on sustainability is reshaping global pricing strategies, driven by consumer preferences, regulatory pressures, and sustainability costs, leading to higher-priced sustainable products and innovative pricing models across industries. [Read full explanation]
Arrow   Click main image to view in full screen.

Psychology of Product Adoption (PowerPoint PPT Slide Deck)

PowerPoint (PPT) 46 Slides

#3 in Product Strategy $39.00
Designed by a firm of ex-consultants from McKinsey, E&Y, and Bearing Point, this presentation discusses the Psychology of Product Adoption. It covers important concepts like Prospect Theory, Innovator's Curse, and Endowment Effect.
Add to Cart
  


Immediate download
Free lifetime updates

BEHAVIORAL ECONOMICS PPT DESCRIPTION

This product (Psychology of Product Adoption) is a 46-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.

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.

This presentation has instructional slides and examples.

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.

The document delves into the intricacies of consumer psychology, emphasizing how reference points influence perceived gains and losses. It explains that consumers evaluate gains and losses relative to their current status quo, which can vary significantly across different markets. For instance, a price change in one region may be perceived differently in another, highlighting the importance of understanding local consumer reference points.

The presentation also covers the Endowment Effect, illustrating how consumers place higher value on items they already possess compared to new acquisitions. This psychological bias means that consumers are more likely to invest resources in retaining what they have rather than acquiring new products. The implication for businesses is clear: new offerings must significantly outperform existing solutions to overcome this inherent bias.

In addition, the document addresses the "Give and Get Dynamics," where consumers must give up an existing benefit to gain a new one. This trade-off is crucial in product adoption, as the perceived value of the new product must exceed the value of the old by a substantial margin. Companies are advised to ensure their new products offer at least three to ten times the value of existing ones to successfully navigate this psychological hurdle.

Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Behavioral Economics, Product Strategy, Psychology, Product Launch Strategy PowerPoint Slides: Psychology of Product Adoption PowerPoint (PPT) Presentation Slide Deck, PPT Lab

BEHAVIORAL ECONOMICS PPT SLIDES

Bridging the Knowledge Gap Between Innovators and Customers

Understanding Innovator Biases in Product Perception

Strategies for Managing Behavioral Change in Product Launches

Evaluating Innovation Impact through Behavioral Change

Leveraging the Freemium Model for Customer Engagement

Understanding Consumer Bias: Prospect Theory Insights

Trade-offs in Recent Innovations: A Consumer Perspective

Understanding Objective vs. Psychological Product Value

Understanding the Endowment Effect in Consumer Behavior


$39.00
Designed by a firm of ex-consultants from McKinsey, E&Y, and Bearing Point, this presentation discusses the Psychology of Product Adoption. It covers important concepts like Prospect Theory, Innovator's Curse, and Endowment Effect.
Add to Cart
  

ABOUT THE AUTHOR

Author: PPT Lab
Additional documents from author: 24

PPT Lab is a presentation design firm specializing in business frameworks and PowerPoint templates. Our team is comprised of ex-consultants from McKinsey, E&Y, Bearing Point, and boutique consulting firms. We have worked with hundreds of clients globally, ranging from mid-size manufacturing companies to global Fortune 500 conglomerates.

All of our documents are of the ... [read more]

Ask the Author a Question

You must be logged in to contact the author.

Click here to log in Click here register

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Bundle and save! You can save up to % with bundles!

View bundle(s)




Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials

 
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates
 
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
 
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group
 
"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience
 
"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

– Michael Duff, Managing Director at Change Strategy (UK)
 
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

– M. E., Chief Commercial Officer, International Logistics Service Provider
 
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

– Roberto Pelliccia, Senior Executive in International Hospitality




Save with Bundles

This document is available as part of the following discounted bundle(s):

Save %!
Product Strategy

This bundle contains 3 total documents. See all the documents to the right.

$89.00


Add Bundle & Save


Your Recently Viewed Documents

Customers Also Bought These Documents


Customers Also Like These Documents

Related Management Topics


Product Strategy Product Launch Strategy Product Go-to-Market Strategy New Product Development Maturity Model Business Maturity Model Product Lifecycle Positioning Pricing Strategy Growth Strategy Corporate Strategy Product Adoption Marketing Plan Development Marketing Marketing Strategy Business Case Development Financial Modeling Business Case Example Business Case Template Capital Budgeting Business Case Sample Business Case Capital Budgeting Business Case Porter's Five Forces Porter's Five Forces Analysis Porter's 5 Forces Digital Transformation Customer Experience Business Transformation Digital Transformation Strategy Cyber Security User Experience Customer Strategy Cybersecurity Mobile Strategy Organizational Transformation IT Security Corporate Transformation Entrepreneurship Startup Small Business Presentation Development Structured Communication Communications Strategy Presentation Design Effective Communication Pyramid Principle Minto Pyramid Barbara Minto Strategy Development Strategic Analysis Business Framework PowerPoint Diagrams Management Model PowerPoint Diagrams Innovation Management BMI Innovation Business Model Innovation Business Model Design Product Management Behavioral Economics Value Creation Shareholder Value Shareholder Value Analysis Total Shareholder Value Consumer Behavior Maximizing Shareholder Value Behavioral Strategy Go-to-Market

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.