From upgrading mobile phones to trading in cars, consumers often face the decision of whether to buy new versions of products they already own. As marketers know, product improvement is a key driver of consumers’ decision to upgrade—the greater the improvement between the previous and new iPhone, the more likely consumers are to upgrade. At best, this encourages R&D efforts and the creation of more technologically advanced products and services. At worst, this encourages dubious claims of “new-and-improved” products that are merely repackaged versions of their predecessor.
What Makes People Upgrade Products? Thinking About Self-Improvement
People splurge when they think they’ve grown.
April 18, 2019
Summary.
From upgrading mobile phones to trading in cars, consumers often face the decision of whether to buy new versions of products they already own. This depends not only on how much real difference their is between the old and and new version, but how much difference consumers perceive there to be. What drives those perceptions? New research highlights the role that consumers’ sense of self-improvement can lead them to recognize greater levels of innovation in new products. This article describes five experiments from a recent study showing just that.
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HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.