Eager Sellers Stony Buyers Case Study
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NISHID VILAS LAD – 2013176 NITESH BERIWAL – 2013177 NITESH SINGH PATEL – 2013178 NITIN BORATWAR – 2013179 NITIN KUMAR SHUKLA – EAGER SELLERS STONY BUYERS Many innovations fail because consumers irrationally overvalue the old and companies irrationally overvalue the new By JOHN T.
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A case presentation on Case Study of "Eager Sellers Stony Buyers" by Nitesh Singh Patel, IMT nagpur
Transcript of Eager Sellers Stony Buyers Case Study
NISHID VILAS LAD – 2013176NITESH BERIWAL – 2013177NITESH SINGH PATEL – 2013178NITIN BORATWAR – 2013179NITIN KUMAR SHUKLA – 2013180NOOPUR MANDHYAN - 2013181
EAGER SELLERS STONY BUYERS
Many innovations fail because consumers irrationally overvalue the old and companies irrationally overvalue the new By JOHN T. GOURVILLE
Potentially Successful?
Webvan Online Grocery business
Segway Scooters
Colgate’s kitchen entrees
DIVX
Questions
Consumer’s perspective
Producer’s 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 PRODUCT
OR TECHNOLOG
YCHANGE
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 & It’s Mudguard Innovation
Conclusion
Businesses need to understand the psyche of consumers
Quick response to consumer behavior
Without it, the innovations will continue to fail
