Product managers must balance the drive for innovation with buyers psychological bias that preferences the benefits they currently possess in relation to those they don’t have. It is crucial for product managers to take into account the perceived value of a product given the surrounding market trends, the products that their target buyers already own, and the level of risk that the new product will fall below the reference point of the buyer’s current situation. Thus, using strategies such as user interviewing – not only for their own product, but to sense how people perceive other products – and research on what products their target users already have, is important in knowing how they will view the new product. Additionally, for a product to be attractive to potential buyers, it is necessary for them to view the product as significantly better than the last, otherwise they will be hesitant against taking risk of loss (given the concept of “loss aversion”). Therefore, implementing concepts to make a product more attractive in use cases or design is important.
