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.