Marketing of Innovations Week 1 PDF

9/6/24 Marketing of Innovations Week 1: An Introduction to Facilitating Change “Innovation is not the product of logical thought,...

9/6/24 Marketing of Innovations Week 1: An Introduction to Facilitating Change “Innovation is not the product of logical thought, although the result is tied to logical structure.” ~ Albert Einstein 1 1 Marketing of Innovations Week 1: An Introduction to Facilitating Change “This class better be good.” ~ Prof. Gavan Fitzsimons 2 2 1  9/6/24 What makes innovation different? 3 3 What makes innovation different? 4 4 2  9/6/24 AN EXAMPLE… 5 5 COMPROMISE EFFECT The tendency to favor middle options 6 6 3  9/6/24 SURVEY $3.49 $2.69 $1.79 Artichoke Scenario: Half of the class saw this choice set… 7 7 SURVEY 22% 61% 17% Artichoke Scenario: …and choice share looked like this 8 8 4  9/6/24 COMPROMISE EFFECT The tendency to favor middle options Two important things about the compromise effect 1. It is stronger when uncertainty is higher (choice, time, product expertise) 2. It suggests that you can manipulate choice by manipulating the range of options 9 9 SURVEY How does De Lallo increase market share? 22% 61% 17% Artichoke Scenario: …and choice share looked like this 10 10 5  9/6/24 SURVEY $4.99 $3.49 $2.69 $1.79 Artichoke Scenario: Other half of class saw this choice set… 11 11 SURVEY 8% 41% 46% 4% Artichoke Scenario: …and choice share looked like this! 12 12 6  9/6/24 STARBUCKS MISTAKE “$1 Coffee at Starbucks,” Newsweek (2008) “Coffee war brews between McDonald's, Starbucks,” CNN (2008) 13 13 STARBUCKS MISTAKE “$1 Coffee at Starbucks,” Newsweek (2008) “Coffee war brews between McDonald's, Starbucks,” CNN (2008) 14 14 7  9/6/24 STARBUCKS LEARNED… 15 15 STARBUCKS LEARNED… 16 16 8  9/6/24 The marketing of innovation transcends any given role. An example: 2020 17 17 Kevin Schulman Stanford School of Medicine 2015 18 18 9  9/6/24 19 19 https://www.nytimes.com/interactive/2020/07/17/upshot/coronavirus-face-mask-map.html 20 20 https://www.nytimes.com/interactive/2020/07/17/upshot/coronavirus-face-mask-map.html 10  9/6/24 COMPROMISE DURING COVID19 21 21 COMPROMISE DURING COVID19 22 22 11  9/6/24 COMPROMISE DURING COVID19 23 23 COMPROMISE DURING COVID19 24 24 12  9/6/24 COMPROMISE DURING COVID19 25 25 COMPROMISE DURING COVID19 26 26 13  9/6/24 COMPROMISE DURING COVID19 27 27 28 28 14  9/6/24 29 29 30 30 15  9/6/24 Design-Thinking Stanford School of Design 31 31 The Stanford School of Design Logical Utility 32 32 16  9/6/24 Heuristics The Stanford School of Design Logical Utility 33 33 Culture Heuristics The Stanford School of Design Logical Utility 34 34 17  9/6/24 2020 Source: Pew Research, 2020 35 35 100% adherence Source: Pew Research, 2020 36 36 18  9/6/24 100% adherence 100% adherence Source: Pew Research, 2020 37 37 100% adherence 100% adherence 100% adherence Source: Pew Research, 2020 38 38 19  9/6/24 100% adherence 100% adherence 81% 100% adherence Source: Pew Research, 2020 39 39 100% adherence 100% adherence 81% 100% adherence ? Source: Pew Research, 2020 40 40 20  9/6/24 Beyond Politics: Promoting Covid- 19 Vaccination in the United States Wood & Schulman, 2021 New England Journal of Medicine 41 41 12 Behavioral Tactics 1. Segment by identity barriers 2. Find common enemies 3. Use analogies 4. Increase observability 5. Leverage natural scarcity 6. Predict and address negative attributions 7. Prompt anticipated regret 8. Avoid piecemeal risk information 9. Promote compromise options 10. Create FOMO 11. Combat uniqueness neglect 12. Neutralize base-rate fallacy 42 42 21  9/6/24 Start at top and work down 43 43 2020-2022…omg 44 44 22  9/6/24 When Vaccine Apathy, not Hesitancy, Drives Vaccine Disinterest Wood & Schulman 2021 45 45 Let’s talk a bit about the class… 46 46 23