NISHID VILAS LAD 2013176 NITESH BERIWAL 2013177 NITESH SINGH PATEL 2013178 NITIN BORATWAR 2013179 NITIN KUMAR SHUKLA 2013180 NOOPUR MANDHYAN - 2013181 EAGER SELLERS STONY BUYERS Many innovations fail because consumers irrationally overvalue the old and companies irrationally overvalue the new By JOHNT. GOURVILLE

Potentially Successful? Webvan Online Grocery business Segway Scooters Colgates kitchen entrees DIVX

Questions Consumers perspective Producers perspective

The Psychology of Gains and Losses Subjective or perceived value rather than objective Evaluation relative to a reference point Improvement as gains and shortcomings as losses Loss aversion

Building a behavioral framework It is built around 3 entities: BUILDING A BEHAVIOURAL FRAMEWORK NEW PRODUCTOR TECHNOLOGY CHANGE CONSUMER WHO MUST ADOPT IT COMPANY THAT DESIGNS IT

Innovation and behaviour change

BALANCING PRODUCT AND BEHAVIOR CHANGES 1.Easy Sells 2.Sure Failures 3.Long hauls 4.Smash hits

BALANCING PRODUCT AND BEHAVIOR CHANGES

Accepting Resistance Be Patient: Strive for 10x Improvement:

Contd. Eliminate the Old: Seek out the Unendowed:

MINIMIZING RESISTANCE Difficult to get 10X Improvements Make behaviorally compatible products Find believers

The Toyota Way of Minimizing Resistance

Apache RTR 180 & Its Mudguard Innovation

Conclusion Businesses need to understand the psyche of consumers Quick response to consumer behavior Without it, the innovations will continue to fail