Executing product innovation while overcoming buyer resistance is a key challenge for product managers. As discussed in Gourville’s article “Eager Sellers and Stony Buyers”, consumers often overvalue what they possess, while companies tend to overvalue their new innovations. This discrepancy is the source of conflict for many product managers that are tasked with introducing new features to their customer base.
One of the primary strategies product managers can employ when introducing features is to minimize the perceived losses associated with adopting a new feature. According to Gourville, consumers experience a psychological loss when they adopt something new, even if the new feature offers superior benefits. To combat this, product managers should focus on creating innovations that require minimal behavior change. For example, by integrating new features that build on familiar user experiences or interfaces. A great example of this is the Toyota Prius, which allowed users to enjoy the mileage benefits of electric energy technology in the familiar driving experience of a conventional combustion engine car.
It’s also important to highlight the long-term gains and benefits of the new feature. Gourville notes that consumers tend to overvalue their current product’s benefits by a factor of three, meaning that any new feature must offer a significantly higher perceived value. Therefore, product managers should clearly communicate the tangible, short-term and long-term advantages of adopting the feature, ensuring that consumers understand how the new feature will drastically improve their experience.
Additionally, in order to increase the chances of success and wide-spread feature adoption, product managers can target early adopters or niche portions of their customer base to introduce innovations. Certain segments may be more willing to embrace new features and can serve as a sounding board for feedback before launching the feature to the entire customer base.
By minimizing required behavior change, clearly communicating benefits, and targeting the right audience, product managers can effectively overcome buyer resistance, increasing the likelihood of feature adoption.
