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Why do some dentists not see the value to buy innovative products…
even when the new products offer distinct improvements over existing ones?
It’s because…
They irrationally over value benefits they currently possess relative to those they don’t.
A Clash of PerspectivesThis bias leads dentists to value the advantages they currently use more than the benefits of the new ones.
are basically damned. Their progression is stopped. While we stand in awe of the complete lack of
understanding of something that appears so simple to us.
Dentists that reject our innovation…
That dentists will automatically adopt new products that we offer even when it will deliver more value than their existing one.
Do not assume…
Dentists respond in 4
different ways:
1 Value the attractiveness of the new product not on the actual value, but on its perceived value.
Distinct characteristics of human nature.
. 2. Value a new product relative to a product they already use.
3. View any improvements as gains and any shortcomings as losses.
4. Losses have a far greater impact on dentists than similar sized gains.
The ENDOWMENT EffectLoss aversion leads dentists to value what they
already have—that is part of their endowment—more than that of which they don’t have.
ExperimentMeasure the magnitude of the endowment effect:
Sellers always demanded at least twice as much to give up the mugs as the choosers would pay to get one.
$3.12 vs. $7.12
Studies ShowPeople demand 2-4 times more compensation to give up products that they already possess than they are willing to pay to obtain these items in the first place.
Dentists irrationally overvalue their current products over those they don’t have by a factor by three.
..
THE 9x EFFECT
DENTISTSARE USUALLY…
HOW WE SEE IT…
Skeptical about a new product’s performance
Unable to see the need for it
Satisfied with the existing tool/technology
Quick to see what they already own as the status quo
Convinced the innovation works best
Sees the need
Dissatisfied with the existing treatment
Set on viewing the innovation as the benchmark
3 x 3
9x
Dentists overweight the current technology benefits by a factor of 3.
Most reps
overweight the
new product’s
benefits by a
factor of 3.
Fundamental problem for embracing new products:
CAPTURING VALUE FROM OUR TECHNOLOGY
EASY SELLSLOW
Limited product
changes and behavior changesWe can create
value through our innovation, but we can capture it most easily by minimizing the need for dentists to change.
HIGH
LOW HIGH
SURE FAILURES LONG HAULS
SMASH HITS
Limited product changes,
significant behavior changes
Significant product
changes and behavior changes
Significant product
changes and limited
behavior changes
Degree of
behavior
change require
d
Degree of product change involved
The process is not exactly analogous to what happens when we exercise a muscle, but it’s
pretty close.