Tuesday, January 29, 2008
See draft results (Release III) on Value Management:
Generally, why do some innovations succeed and others fail?
Why the delay between invention and market acceptance of an innovation?
Specifically, and in depth - how do consumers understand the value in new technology?
And generally, how do consumers behave to assess, and communities make technology assessment decisions?
Recent Technology Impact - Explaining takeup of broadband, digital television, 3G mobile.
Practical Impact - Impact on marketing of technology, impact on understanding process of innovation.
Policy Impact - Australian election debate about political intervention in stimulating takeup of broadband by consumers.
Value supposed as explanation for innovation success, and spread of new technology.
Value defined as personal, subjective ascertainment of costs, benefits and risks.
Impact: Need for value management; tools: value trajectory, value conversation
What is value?
How does value work?
What should marketers, innovators, policy makers do about consumer value?
What is value?
Figure 1 - Value in action - the simplest view: Value as a black box.
In Figure 1, value is a mediator between information and consumer action. Action includes inaction or waiting, and value assessments are stored in attitudes, that can lead to future action.
Figure 2 - Opening the black box of value. Value comprises several interacting concepts.
Value was found to be very multi-faceted. Over 80 value elements were found that compete against each other to assess value. These were compressed into 12 value dimensions. Four of these dimensions were agreed by 100% of interviewees. The remaining eight dimensions, were noted by between 1/3 and 2/3 of interviewees.
Value Dimensions are a continuum of opposites, with one end of the dimension increasing value, and the other end decreasing value. Value is sensitive to new information, and new information is assessed as to its impact on value dimensions, leading to a new value assessment. Some people prefer one end of the dimension, while others may prefer the other end. For instance, some prefer new things, others prefer what they know already, and don't like to change. Some people may take different positions for different things. Some prefer simple, others complicated. But value dimensions compete with each other - simplicity and function, price and reliability, beauty and community, privacy and knowledge.
Function Price Time / convenience Service / reliability
Other Value Dimensions: (from most to least common)
Learning / new Emotion Need Simplicity / Complexity
Duty Power / Freedom Connection / Community Beauty / aesthetics
How does value work? ... to follow
What should you do about value? ... to follow