One of the main reasons why entrepreneurs start new businesses is that they believe they have an innovative idea that will captivate customers. Business literature often supports this notion, highlighting the importance of introducing new products or services to attract customer attention. However, while innovation can generate buzz and headlines, it doesn’t always translate into strong sales. This is because new and novel products or services, despite being intriguing, can intimidate consumers due to the uncertainty they introduce. Alongside a business’s economic and marketing challenges, such as creating awareness about a new offering and high customer acquisition costs, marketing a novel product or service often fails because of consumer psychological issues, which is the focus of this post.
Consumer Psychological Issues to New and Novel Things
Consumers often hesitate to buy new and novel products and services due to several factors: status quo bias, the certainty gap, the fact that most are not early adopters, and fear of overhyped claims. Let’s explore each in more detail.
The Status Quo Bias
Research has shown that consumers tend to favor familiarity and predictability over novelty when it comes to making purchasing decisions. This phenomenon, known as the “status quo bias,” indicates that people prefer existing, familiar products over new ones, even if the latter might offer superior benefits. The uncertainty associated with new products creates a “certainty gap,” making consumers hesitant to switch from what they know and trust to something unfamiliar.
The Certainty Gap
The certainty gap is a buyer’s skepticism or doubt about the ability of your product or service to deliver on its promises.
New and novel products and services are often considered risky purchases because buyers know that sellers are often still ironing out bugs and kinks. As a result, many consumers, although intrigued by the offering, tend to avoid purchasing out of fear that the product or service will not meet their expectations.
This skepticism stems from the fact that novel products have no track record of reliability. Consumers rely on past experiences and available reviews to guide their purchasing decisions, and new products often do not provide this necessary reassurance. According to research published in Science Daily, consumers tend to favor familiar products and services because they minimize perceived risks and provide a sense of security.
The 5 Categories of Adopters
Additionally, as Professor Everett Rogers explains in his book “Diffusion of Innovations,” the early adopter cohort represents only a small fraction of the total adopters needed to make a product or service financially viable. Early adopters are typically enthusiastic about technology and performance, viewing themselves as visionaries. However, a significant and daunting chasm separates these early adopters from the majority adopter cohort, who prioritize solutions and convenience over novelty and innovation.
Rogers’ model identifies five categories of adopters: Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. While Innovators and Early Adopters are crucial for the initial uptake of a product, the Early and Late Majority are essential for achieving widespread adoption and financial success.
The early majority, which represents a larger portion of the market, tends to be more pragmatic. They wait to see how new products perform and often rely on feedback and reviews from early adopters before making a purchasing decision. This group values proven solutions that offer convenience and reliability over cutting-edge features.
The Gartner Hype Cycle
Then, there is the theory embraced by the Gartner Hype Cycle, which provides insight into how the market perceives the value of a new or novel product or service as it evolves throughout its maturity lifecycle.
The theory states that new and novel products are often overhyped when first introduced, generating significant excitement and high expectations. During the “peak of inflated expectations,” media coverage and early adopter enthusiasm can create unrealistic hopes about the product’s capabilities and benefits. However, these products frequently fail to deliver on their exaggerated promises, leading to the “trough of disillusionment.” In this phase, the initial excitement wanes, and disappointment sets in as the product’s limitations and bugs become apparent.
Consumers are wary of falling for overhyped claims only to find that the product does not meet their expectations. This skepticism can significantly hinder the adoption of new products.
Solution: Plain Vanilla
All these subconscious fears of new and novel things often manifest in poor initial sales. So, how can entrepreneurs carve out a new niche without scaring away prospects? The answer lies in pitching their offering as plain vanilla.
Positioning a product or service as “plain vanilla” means presenting it as a safe, familiar, and reliable option rather than emphasizing its novel or cutting-edge features.
The strategy of presenting your idea as “plain vanilla” is about making your product or service seem familiar and reliable to your potential clients. The goal is to reduce the perceived risk associated with your offering by emphasizing its similarities to known and trusted solutions.
Here’s how it works.
Identify the Familiar
Highlight the aspects of your product or service that are common or familiar to your potential clients. This could be features, benefits, or even the underlying technology. Drawing parallels with familiar products or concepts can make the new product or service seem less foreign. This helps to bridge the gap between the new and novel and the known, easing the transition for consumers.
For example, if introducing a new software product, you might compare its interface or functionality to well-known applications that users are already comfortable with.
“Our software features an intuitive interface similar to Microsoft Office, ensuring users can navigate it effortlessly. Additionally, it offers advanced project management tools tailored to users’ needs. With endorsements from industry experts and high user ratings on major review platforms, our software’s reliability and user-friendliness are well-proven.”
Emphasize the Reliable
To emphasize the reliability of your offering, stress its proven track record, highlight positive reviews, and showcase endorsements from trusted sources. By pointing out these aspects, you can build trust and credibility with potential customers, making them more likely to choose your product or service.
For example, if you sell cybersecurity software, you can emphasize reliability by highlighting its proven track record and endorsements.
“Our base cybersecurity software has protected thousands of companies for a decade, consistently earning high ratings on TrustPilot and Gartner Peer Insights. Endorsed by industry leaders like Chuck Brooks and awarded ‘Best Cybersecurity Solution’ by the Cybersecurity Excellence Awards, our base software’s reliability is well-established.”
Minimize the Novel
While it’s essential to differentiate your product or service, avoid overhyping it as a first-of-its-kind solution. Too much novelty can make your offering seem risky or unproven. Stress the use of proven technologies and introduce innovations gradually.
For example, if launching a new fitness app, emphasize its reliable tracking features similar to popular apps but with added benefits like personalized workout plans, making it less intimidating.
“Our fitness app offers reliable tracking just like the leading apps on the market. Plus, it includes personalized workout plans tailored to your fitness goals. With endorsements from fitness experts and a 4.8-star rating on major app stores, you can trust our app to help you achieve your health goals.”
Value Chunking
Use a technique called “value chunking” to make it seem like your deal is different from “normal” in just one fundamental way, while everything else about the deal is entirely plain vanilla. Then, show the buyer that what’s normal is shifting and that the key element that makes your offering different is gaining traction.
For example, if you sell project management software, you can use value chunking by emphasizing that your software includes all the standard features like task assignments, deadlines, and collaboration tools (plain vanilla features). Then, highlight one key difference:
“…Our software also includes an AI-powered task prioritization system that optimizes your project timelines. With AI integration becoming the new standard in project management, this feature ensures you stay ahead of the curve.”
Conclusion
In conclusion, while innovative ideas are often seen as the driving force behind new businesses, their success hinges on overcoming various psychological barriers consumers face. Entrepreneurs must recognize the challenges posed by the status quo bias, the certainty gap, and the general reluctance of the majority to adopt often overhyped new products and services. By emphasizing the reliability and familiarity of their offerings, minimizing their novelness, and using value chunking, businesses can bridge the gap between novelty and consumer acceptance, ultimately turning intriguing ideas into profitable ventures.
How will you introduce your new and novel product or service to your customers?
