Understanding the psychology of new product adoption

Understanding the Psychology of New Product Adoption
Student Name:
Professor:
Course Title:
Date:
Understanding the Psychology of New Product Adoption
In his article, the author looks into the psychology of behaviour change in order to establish the reasons as to why new products are not able to live up to the expectations of companies. In the highly competitive marketplace of today, business organizations that successfully launch new products into the market have a higher likelihood of flourishing compared to companies that do not (Gourville 2). Many new and innovative products have been introduced into the market just to end up falling far short of expectations as they do not attract enough customers to make them successful in the marketplace.
New products usually necessitate that customers have to alter their behaviour, and such behaviour changes entail costs, for instance learning costs, transaction costs, and obsolescence costs. Most firms do anticipate these economic switching costs. Even so, the psychological costs linked to behaviour change are what companies do not consider (Gourville 4). Many products...