Podcast
Questions and Answers
What is a key reason why many innovative products fail?
What is a key reason why many innovative products fail?
- Poor product quality
- Lack of sufficient marketing
- High production costs
- Customers don't recognize their value (correct)
According to the article, what do companies often fail to consider when launching new products?
According to the article, what do companies often fail to consider when launching new products?
- How customers make purchasing decisions (correct)
- Customer desires for variety
- The competitive landscape
- Production efficiency
What are the two main ways customers collect product information?
What are the two main ways customers collect product information?
- Word-of-mouth and influencer marketing
- Surveys and in-store visits
- Search and inference (correct)
- Reviews and advertisements
What did the example of United Airlines' aircraft purchase illustrate?
What did the example of United Airlines' aircraft purchase illustrate?
What challenge did the British shower manufacturer face?
What challenge did the British shower manufacturer face?
In which situation are customers more likely to use inference?
In which situation are customers more likely to use inference?
What role does brand play in customer inferences?
What role does brand play in customer inferences?
Why is search less likely when customers have significant expertise?
Why is search less likely when customers have significant expertise?
How did McDonald's use parking lot cleanliness as a cue?
How did McDonald's use parking lot cleanliness as a cue?
Which of the following is a subconscious factor in customer inference?
Which of the following is a subconscious factor in customer inference?
What is a potential downside of relying on inference for product quality?
What is a potential downside of relying on inference for product quality?
What did customers at McDonald's infer from the parking lot cleanliness?
What did customers at McDonald's infer from the parking lot cleanliness?
What is a risk for companies that innovate without considering customer perception?
What is a risk for companies that innovate without considering customer perception?
In the 'Checker Shadow Illusion' example, what did customers struggle to realize?
In the 'Checker Shadow Illusion' example, what did customers struggle to realize?
What is the role of the brand in markets where customers cannot easily search?
What is the role of the brand in markets where customers cannot easily search?
How has the Internet impacted the cost of searching for product information?
How has the Internet impacted the cost of searching for product information?
When are customers most likely to conduct thorough searches?
When are customers most likely to conduct thorough searches?
Why might customers ignore great new products?
Why might customers ignore great new products?
According to the article, what should companies focus on to increase product success?
According to the article, what should companies focus on to increase product success?
What does the example of the Aqualisa shower system illustrate?
What does the example of the Aqualisa shower system illustrate?
When customers can recognize product greatness, companies are more likely to:
When customers can recognize product greatness, companies are more likely to:
Which factor can diminish the importance of brand in customer decisions?
Which factor can diminish the importance of brand in customer decisions?
How do customers often make inferences about unobservable product features?
How do customers often make inferences about unobservable product features?
What is a consequence when customers shift from search to inference?
What is a consequence when customers shift from search to inference?
What question can help companies predict if customers will embrace a new product?
What question can help companies predict if customers will embrace a new product?
Study Notes
Customer Perception of New Products
- Customers often fail to recognize the value of innovative products, leading to their failure.
- Companies should focus on how customers collect product information and make purchasing decisions to avoid this.
- Customers primarily gather product information through two main ways:
- Search: actively seeking information through reviews, advertisements, and online searches.
- Inference: using cues and existing knowledge to make assumptions about product quality.
- Inference becomes more likely when the cost of searching is high, the product is complex, or customers have limited expertise.
- Brands serve as a proxy for quality when customers rely on inference, acting as a signal for unobservable features.
- Customers are more likely to engage in thorough searches when buying high-cost or important products.
- Companies should focus on helping customers recognize the value of their products to increase success.
- Understandable product value, especially for innovations, is key to customer adoption.
- Simple visual cues can have a significant impact on customer inferences about product quality.
- Subconscious factors, like visual cues (color, cleanliness) and brand reputation, influence customer inferences.
- Increased access to information through the internet has lowered the cost of searching, making customers less reliant on inferences.
- Customers need to be motivated to search for a solution for a new product to be successful.
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Description
Explore how customers perceive the value of innovative products and the factors that influence their purchasing decisions. This quiz will delve into the methods customers use to gather information, such as active searching and inference. Understanding these concepts is crucial for companies aiming to improve customer engagement and product recognition.
