Monday, July 31, 2006

"If we build they will come"

The idea that the superior product will win out in the marketplace pervades much of the product development literature (e.g., Cooper 1987; Gruenwald 1985; Kleinschmidt and Cooper 1991). However, the history of technology is full of examples that contradict this notion.

Sony's BetaMax, considered by many to be a better
machine (Perry 1988; Cusumano, Mylonadis, and Rosenbloom 1992), lost the market to the VHS format videocassette player largely due to not meeting the needs of consumers. Similarly, compact disk technology provides unparalleled sound reproduction capabilities, including increased dynamic range. Yet, for many consumers, louder highs and softer
lows were a nuisance. Soon, compact disk players incorporated a 'CD-r' button, to provide for a reduction in dynamic range for certain listening environments such as automobiles. This ironic situation shows how product attribute superiority does not always lead to customer satisfaction.

So the lesson seems to be, If we build what they want they will come.

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