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Time-to-value, customer learning, and the development of breakthrough products

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  • Chialin Chen
  • Hamid Noori

Abstract

Breakthrough products often have more complex built-in technology and functionality than their traditional counterparts. Since most customers do not have prior experience with breakthrough products, they usually spend more significant time, money, and/or effort in learning their innovative features. In this paper, we develop a conceptual model with supporting cases to provide some critical insights to the development of breakthrough products from an integrative perspective of design and marketing. Our analysis shows that the amount of learning time has significant impacts on the success of a breakthrough product in today's marketplace where many customers are impatient or not technologically ready. A customer may terminate the learning process before the entire embedded value of a product is realised or even before her utility is maximised due to learning difficulty or product complexity. We also discuss several useful guidelines and strategies that can be used to manage the development of breakthrough products.

Suggested Citation

  • Chialin Chen & Hamid Noori, 2005. "Time-to-value, customer learning, and the development of breakthrough products," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 1(3/4), pages 261-279.
    • Handle: RePEc:ids:ijpdev:v:1:y:2005:i:3/4:p:261-279
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