Innovation & Institutions, Will it Blend?
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Innovation & Institutions, Will it Blend?
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Rescooped by Deb Nystrom, REVELN from What I Wish I Had Known
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For J.C. Penney, a Tough Lesson in Listening, to Whom and Shopper Psychology

For J.C. Penney, a Tough Lesson in Listening, to Whom and Shopper Psychology | Innovation & Institutions, Will it Blend? | Scoop.it
Because of the quirks of human psychology, simplifying pricing isn’t so simple. J.C. Penney learned that lesson the hard way.


...consumers are conditioned to wait for deals and sales, partly because they do not have a good sense of how much an item should be worth to them and need cues to figure that out.


Just having a generically fair or low price, as Penney did, said Alexander Chernev, a marketing professor at the Kellogg School of Management at Northwestern University, assumes that consumers have some context for how much items should cost. But they don’t.




Via Anita
Deb Nystrom, REVELN's insight:

Connected to the last post regarding when and how to listen to customers, along with innovation.  ~  Deb

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Anita's curator insight, April 16, 2013 8:21 AM

When the numbers don't tell the whole story.

Scooped by Deb Nystrom, REVELN
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Innovate like Intuit - Customer-centric, grassroots, connected

Innovate like Intuit - Customer-centric, grassroots, connected | Innovation & Institutions, Will it Blend? | Scoop.it

"Innovation doesn't have to be hard to master - a great case study with Intuit, the customer-centric, grassroots innovative TurboTax folks."


It's inspiring to read how Intuit structures in ways to understand its customers, deeply.  We're TurboTax customers, by the way.


Excerpts:


To grow faster than your market, you need to create more value. The essential business challenge is to create better products, less costly solutions, or more effective internal processes that results in better, faster or cheaper service.


Sounds easy, but when you call that “innovation,” many companies freeze up.



One company that excels at listening is personal-finance software giant Intuit Inc. of Mountain View, Calif. The $4-billion-a-year maker of QuickBooks and TurboTax has grown on grassroots innovation.


When Intuit founder Scott Cook was developing the program that became known as Quicken, his sister-in-law phoned hundreds of consumers to find out what they liked and disliked about managing their personal finances.


Cook learned:


  • 80% of consumers resented the time and paperwork required, so he vowed his product would save customers time. 
  • Quicken took off because it was simpler and easier to use than its competitors (which Cook dubbed the “47th-mover advantage”).
Cook also started to follow customers home; he and other staffers would sit at consumers’ kitchen tables and watch them pay their bills. This passion for field research still thrives at Intuit.
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