1. Product refresh
How much product innovation is too much for the consumer?

2. The paradox of choice: Is too much choice still better?
There is a fundamental difference between choice & freedom
Choice Freedom
= essential to autonomy, = essential to self-respect,
which is fundamental to public participation,
mobility and nourishment
well-being
The fact that some Not all choices enhance
choice is good does freedom: it may impair
freedom by taking time
not necessarily mean and energy
that more choice is
better
Source: Barry Schwartz, The Paradox of choice (2005)
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3. Initially extensive choice is more attractive but it can
decrease satisfaction and motivation
Consumers are initially more
attracted to extensive
choices than to limited
choice sets.
CHOICE IS…
HOWEVER
ENJOYABLE OVERWHELMING
This isn’t reflected in their • Feel more
committed & B • Amount of
information to
purchasing behavior. What responsible be considered
seemed to be appealing at • Knowing that
the chance of
U • Limited time &
energy
T
first, reduced their making a
motivation to buy. good choice is • FEAR OF LATER
high REGRET
Source: Barry Schwartz, More isn’t always better (Harvard Business Review 2009)
Iyengar & Lepper, When choice is demotivating: Can one desire too much of a good thing? (Journal of Personality and Social Psychology (2000)
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4. The level of satisfaction and motivation to buy are
influenced by opportunity costs & regret
Will produce dissatisfaction but
also paralysis of making choices
Every choice is associated Anticipated
due to the fear of regret. Makes
with OPPORTUNITY COSTS. regret
decisions harder to make.
The necessity to make
trade-offs affects the level
of satisfaction because
more attractive options also
Detracts from satisfaction
mean more lost Post- whether or not the regret is
opportunities. decision justified. It makes decisions
regret harder to enjoy.
Source: Barry Schwartz, The Paradox of choice (2005)
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5. When is choice positive or negative in your portfolio?
The effect of assortment size on market share depends on the alignability of the
assortment
ALIGNABLE
ASSORTMENT
• Alternatives vary along a single,
compensatory product
dimension
MARKETSHARE
• Increase in market share
because its meeting individual
preferences without increasing
conflict too much
ASSORTMENT SIZE
NON ALIGNABLE
ASSORTMENT
• Alternatives vary along multiple,
noncompensatory dimensions
• Cognitive overload that leads to
frustration and regret
• Decrease in market share
Source: Gourville & Soman, Overchoice and assortment type: when and why variety backfires (Marketing Science 2005 Vol 24 No 3)
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6. Three observations in the marketing world
“Plus du n’importe quoi”
1 Consumers aren’t proud to consume anymore: doing more
with less. There is a need for RELEVANCY.
2
It is getting more difficult to put people in segments and
push a product on them. PUSH MARKETING IS OVER and
marketers should ask themselves if there is a demand for it.
3 Marketers should think about the NEEDS of the consumer
and not in terms of shelf space
Source: Internal interviews The House of Marketing
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7. Is there an overload of choice or a selection problem?
Focus by using simplicity marketing to facilitate the decision making process
Increase perceived alignability Guide through process
• Categorize: feature bundling • Online: filters & recommendations
• Make your service • Understandable product fiches
packages/products go from
multiple dimensions to one
dimension
If the choosing process is too difficult, consumers will discriminate based on PRICE.
Because it will remain the only understandable and comparable dimension.
Source: Spenner & Freeman, To keep your customers, keep it simple (Harvard Businees Review May 2012)
De Standaard 12 oktober 2010 (Marketing van de eenvoud) & 13 november 2010 (Verlamd door te veel keus)
Internal interviews The House of Marketing
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8. How fast should this simplified offering be refreshed?
Be agile and adapt according to consumer evolution
Consumer INSIGHTS are indispensable
Look at the evolution in CONSUMER NEEDS & USE
Impacts type of refresh needed
• Adjust existing product/service
• Launch new product/service
• Change entire product offering and
categorization
Source: Internal interviews The House of Marketing
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9. Product type impacts the pace of product refresh
Products
Services
Brand importance
Satisfaction importance
Durables FMCG
Purchasing
frequency
• Watch out for
• Need for transparency • Lower
regret/frustration
and comparison implication and
novelty can
• People use this for
• Ease of decision making trigger people
a longer time and
process is key
don’t want to feel
• But buy out of
as if they are using
habit and want
an outdated
it to go fast
product
More refresh (and
choice) acceptable
Source: Internal interviews The House of Marketing
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10. In your communication; do not overwhelm you consumers
with big launches
MARKETERS/PRODUCT AVERAGE CONSUMER
MANAGERS
Too much change results in
• Love new products & insecurity & frustration
innovation because:
• can’t find the
• Want to communicate product/service they
about it were used to
• Regret because too
much features changed
THREE GUIDING PRINCIPLES
1 Launches are not always necessary: not every change has to be communicated
because often it is just a small adaptation of the product
2 Launches with small updates in between
3 If you want something new to say in your marketing campaign: highlight your
different products/packages in your categorization
Source: Internal interviews The House of Marketing
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11. Find your sweetspot & refresh rate
1 Need for relevancy Consumers experience regret when
confronted with opportunity costs of
2 Push marketing is over different choice alternatives.
order to not loose the consumer,
In
these feelings should be managed
3 Consumer needs should be the
driver for product offering & refresh
by facilitating the decision making
process.
FOCUS AGILITY COMMUNICATION
• Categorize by feature • Only launches when
bundling and obtain a there is a significant
comparable offering change
Understanding the
evolution in consumer • Updates in between
needs & use will for features added
• Guide consumers determine whether
through your offering product refresh is • Highlight different
by using buying needed aspects of
guides, interactive packages/products in
tools or product fiches marketing
communications
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12. ILLUSTRATIONS
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13. Illustration communication
Cars (BMW) & Microsoft
Periodical big launches of totally new models/packages with small updates in
between
• Categorization: clear distinction between models and
submodels
• Big relaunch when there is a totally new model
• Otherwise updates for new features added, but do not
communicate extensively about this
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14. Illustration
categorization & communication
Mobistar & Telenet
Simple categorization to make offer more comparable
• Need for focus & transparency, especially in the Telco sector
• Consumer use demanded an entire new categorization
• Communicated the big relaunch and now Mobistar has
campaigns about each seperate package
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15. Illustration guiding consumer
Base
• Online tool
• Interactive buying guide
• Helping consumer get through decision making process
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16. Illustration transparency
Mobile Vikings
More is less & you get what you see
• Dare to be different and offer a limited set of services
• Clear and straightforward: you get what you see
• Huge success: > 137.223 users
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17. Illustration product dependency
Philadelphia versus Boursin Cuisine
Is Philadelphia going too far in its product choice especially with Philadelphia
Milka?
CONSUMPTION
RATE
Boursin Cuisine is consumed faster than Philadelphia and so perhaps
variation and refresh is more tolerated. It can be used for different meals
and you can experiment with it. In contrast Philadelphia sits longer in the
fridge and therefore making a choice is more difficult. Therefore the latter
doesn’t need extensive variation. Even products that look alike can differ
when it comes to refresh & choice: consumer insights are key!
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