Eager Sellers & Stony Buyers

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Transcript of Eager Sellers & Stony Buyers

Presented by Aathira G Krishna


By John T. Gourville


Understanding the Psychology of New- Product Adoption

If a man can write a better book, preach a better sermon, or make a better mousetrap than his neighbour, though he build his house in woods, the world will make a beaten path to his door!!!

Innovation cost

Economic cost Psychological cost

People irrationally overvalue the benefits they currently possess relative to those they dont

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Relative advantage How individuals value prospects/ choicesPerceived value Reference point Gains and losses Loss Aversion

Losses loo lar er t an ains!!!

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Endownment effect Status quo bias

and Behavior Change Consumers and Behavior Change Companies and Behavior Change Innovations





Skeptical about a new products performance Unable to see the need for it Satisfied with the existing product Quick to see what they already own as the status quo

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Convinced the innovation works Likely to see a need for the product Dissatisfied with the existing substitute Set on viewing the innovation as the benchmark

Consumers are usually

Companies are often

Companies overweight the new products benefits by a factor of three

Consumers overweight the incumbent products benefits by a factor of three

Easy sells

Smash hits

Sure failures

Long hauls

Accepting resistance

Minimizing the resistance Make behaviorally compatible products Seek out the unendowed Find believers


Be patient Strive for 10 X improvement Eliminate the old



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