We irrationally tend to overvalue the benefits of what we currently have, relative to what we don’t.
“We have a psychological bias associated with any behaviour change.” – JOHN GOURVILLE, HBR
This bias leads consumers to value what they have as three times better than what they would potentially gain. And, it also leads executives to overvalue their new innovation by the same factor.
This mismatch in perspective is called the 9x effect of product development.
“Consumers reject new products that would make them better off, while executives are at a loss to anticipate failure. This double-edged bias is the curse of innovation.” – HBR