Indeed, once you’ve grasped your customers’ psychology, let’s examine this through the lens of psychological theories.
Product Adoption or Diffusion Curve:
There are five customer types, with only 16 percent falling into the category of innovators and early adopters. These individuals, often characterized as tech enthusiasts and visionaries, are particularly enthusiastic about product features. In this market segment, a product like the A51 holds appeal. However, the purchase decisions of the remaining 84 percent are driven by impulses and emotions, and it’s essential to recognize that a product cannot achieve success by solely targeting 16 percent of the population.
Maslow’s Hierarchy of Needs:
Human needs can be categorized into basic, psychological, and fulfillment. You should start by identifying and satisfying these basic needs to effectively market a product. Psychological needs encompass desires like love, belonging, and esteem, reflecting the universal quest for recognition and self-worth. Self-fulfillment needs to involve creative pursuits like music and art, providing a means of self-expression and enrichment. This framework states that as a product resonates more with psychological and self-fulfillment needs, customers become more willing to pay.
5 Product Levels Theory
Philip Kotler’s comprehensive product framework comprises five distinct types, the core product, generic, expected, augmented, and potential product. The core product addresses fundamental product needs, while the generic provides a bit more functionality. The expected product aligns closely with customer desires and preferences. In contrast, the augmented product offers additional value or features that pleasantly surprise customers. Finally, the potential product introduces innovative elements that customers may not have even considered, capable of leaving a profound impression. Hence your product must progress through these five levels of the product hierarchy to meet changing customer expectations and deliver heightened value.
The Kano Model
The model delineates three distinct types of customer needs: must, want, and wow. These categories play a pivotal role in shaping customer satisfaction levels. Continually incorporating must-have features or requirements alone will never lead to a positive satisfaction outcome; it merely keeps satisfaction stagnant at a baseline level. Even as you pile on specifications like megapixels and gigahertz, you’ll find yourself hovering around a neutral satisfaction point.
To truly elevate customer satisfaction, the product must transition from addressing must-have elements to fulfilling wants and eventually culminating in wow factors. By attending to a customer’s wants, you can significantly boost satisfaction.
In essence, understanding and catering to a diverse customer base’s needs and psychological inclinations is the key to creating a product that resonates with a broader market. By moving your product up the value chain, aligning with Maslow’s hierarchy, and addressing customers’ wants and wow factors, you can enhance its competitive advantage and appeal to a larger portion of the market beyond just the early adopters.
This is where Apple’s product differentiation comes into play. Let’s delve into Apple’s distinctive features:
1. Must-Have Features: Apple offers a 12.5 gigahertz processor, 4 GB of RAM, and a 12 MP camera. Apple’s insight here is that customers don’t buy megapixels; they purchase the ability to capture memorable moments on platforms like Facebook, Instagram, and YouTube. The technical specifications, such as 4 GB of RAM and a 12-megapixel camera, suffice for these needs. Apple follows the principle that for specific tasks, more is not necessarily better; sometimes, less is more.
2. Wants: Apple recognizes that customers prioritize superior video clarity. Despite having a 12 MP camera, Apple’s focus on video clarity stands out with its impressive 20-40 fps (frames per second), surpassing competitors like Samsung and Nubia. This intelligent selection of features aligns with what truly matters to customers, setting Apple apart.
3. Wow Factor: The real wow factor lies not in hardware specifications but in Apple’s music offerings through iTunes and its ecosystem of apps. These apps empower users to unleash their creativity, generating double the revenue compared to other app stores. Apple even invests in developers to create innovative apps, a luxury Samsung, reliant on Google’s Android, cannot replicate. This strategic approach sets Apple apart.
So, when you examine these three strategies, you can see how they harmonize. Basic needs transform into must-have features, forming the core product. Safety needs translate into generic product elements. Psychological needs become wants, constituting the expected product. Lastly, self-fulfillment needs manifest as wow factors, defining the potential or augmented product. The key is to integrate these layers seamlessly into one product.
Many other phones have overemphasized the core product while neglecting the expected and augmented levels. In essence, the approach is straightforward: enhance appeal from basic to psychological to self-fulfillment, applicable not only in the phone industry but across various sectors. As you add these layers, your WTOP (willingness to pay) naturally increases. However, it’s crucial to begin with a solid core offering, akin to providing rice before offering a delightful curry. Your core should always be ready to anchor your product evolution.
