The failure to accurately understand a customer’s notion of perceived value is the surest recipe
for complete disaster. This may be a large requirement because in many cases customers may be
quite unsure about their own notion of value or have difficulty in explicitly articulating that
notion. One would think that larger firms—those with much greater resources—would be in a
better position to clearly identify their customers’ notion of value. This does not seem to be the
case, however, with all large firms. Even they may stumble in attempting to develop products
and services that they believe will meet their customers’ concept of value. In this feature, several
noticeable product failures are identified. Almost every failure came from a large corporation.
This is because we are much more familiar with the failures of large corporations that invest
considerable time and effort into the introduction of new products and services. There is far less
press given to the failures of small businesses that misread or misunderstand their customers’
notion of perceived value.
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