Do you really understand the concept of product value?
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a product should have — value and complexity.
Product value is the benefit that a customer gets by using a product to satisfy her needs minus associated costs.
Complexity is the effort associated with delivering such a product to the customer.
Absolute vs. relative value
Absolute value quantifies how well a product meets customers needs whereas relative value puts the product value in the perspective of the available solution alternatives.
Ideal, diminishing and declining value
Typically a product has a few key features that deliver that vast majority of the aggregate value.
Real vs. perceived value
release value: total value that a product objectively offers to a customer, or the total value a customer could reap if using all functionality optimally.
Perceived value: On the other hand, if you over-promise and under-deliver the customers will find out and will be disappointed.
Value of a habit
it is true that if a prospective customer is deciding between two options, she will choose the one that will offer more perceived value.
A study by John T .Gourville, a professor at Harvard Business School, states that the difference in value between a new product and existing product must be up to 900% for users to adopt the new product.
It turns out that the total value of a product can actually increase over time even if the functionality does not change. How? The users settle into strong habitual behavior surrounding a product — a habit or a routine that they conduct repeatedly with minimal cognitive effort.
During the habit forming phase, the association between her need to achieve a goal (trigger) and her action to use product B intensifies. The cognitive effort during the process decreases and the total value she reaps from the product thus increases.