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Lead User Development Paper

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If you had a new product or service, what would the first question you would want to answer about your market/customers? How would you attempt to answer it? The first question that I would want to get answered is: what is our potential market that the product can penetrate in? This overarching question encompasses more questions because to find the market size you need to know what technological or non-technological trends your product/service can exploit and most importantly, you need to know who is your lead user. Your product/service needs to satisfy a general need of your customer and provide a benefit to one of those needs. Can a company sometimes know more about customers’ needs than the customers themselves, or should a company always …show more content…

To find lead users you need to specify lead user indicators: 1. You need to find market or technological trend and related measures because lead users are users that will use your product/service before it goes to market 2. Define the measure of potential benefit; these include the evidence of user product development or product modification, user dissatisfaction with existing products and the speed of adoption of innovations What do you feel are the main advantages and disadvantages of the lead-user development approach? The main advantage of the lead-user development approach is that it blends qualitative and quantitative data to provide a clear indication of who your main customer is going to be and how they are going to benefit from your product or service. The steps in targeting your lead user is also well-defined and easy to follow. One the biggest disadvantages of this approach is that the methodology assumes that users who experience a need give more accurate information compared to the ones without this experience; often the need arises for external factors such as change in the market or technology; the methodology does not account for this factor. Second, it assumes that some people experience a need at different rates and this might skew the results of the test. Thirdly, the method assumes that users will benefit from the proposed solution on different levels, therefore this …show more content…

Along with video retnals, the stores provided a “cinema” experience by providing foods that you would typically find in the cinema such as pop corn and sweets. Netflix initially centered around its business model around two aspects: 1. DVD-rentals where customers could rent the desired DVDs and receive them by mail, they have to return them also by email and would get charged a fee if they sent it back late 2. The video streaming business model was centered around an “all you can eat” model where users paid a monthly fee to access all the movies and video on the Netflix database. Along the access for movies, Netflix provided a recommendation system that was tailored according to the user’s viewership Was Netflix’s business model disruptive or more of a migratory

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