Understanding Consumer Motivation for Innovation

Oct 2, 2024

Lecture on Innovation and Consumer Motivation

Introduction

  • Speaker: Clay Chrisan, Professor at Harvard Business School
  • Focus: Innovation and the challenges in motivating consumers to purchase products.

Core Concept

  • Key Idea: We "hire" products to perform specific jobs in our lives.
  • Understanding the job consumers need done is crucial to motivating them to buy a product.

Case Study: Fast Food Milkshake

  • Objective: Increase milkshake sales for a fast-food restaurant.
  • Initial Approach: Traditional market research (e.g., customer feedback on flavor, price, texture) failed to improve sales.

Innovative Approach

  • New Question: What job arises in consumers' lives that leads them to buy a milkshake?
  • Methodology: Observational study and interviews at a restaurant.

Findings

  • Consumer Behavior:
    • Half the milkshakes were sold before 8:00 AM.
    • Customers were usually alone, bought only the milkshake, and drove off.
  • Insight on Job to be Done:
    • Customers had a long, boring morning commute.
    • Needed a snack that was filling and could be consumed easily while driving.
    • Milkshakes were chosen because they were viscous, took time to consume, and filled them up until lunch.

Competitive Analysis

  • Alternative "Hires": Bananas, donuts, bagels, Snickers, coffee.
    • Bananas: not filling enough.
    • Donuts: messy and quick to consume.
    • Bagels: require effort to prepare and eat.
    • Snickers: caused guilt.
    • Conclusion: Milkshakes were the best fit for the job of "sustaining and occupying during the commute."

Implications

  • Product Improvement: Understanding the job consumers hire a product for makes it obvious how to improve it.
  • Competitor Perception: Competitors in the minds of consumers are not always similar products but those that fulfill the same job.

Conclusion

  • By understanding the "job to be done," companies can better innovate and cater to consumer needs, leading to improved sales.