The Vapor Point
Peter de Jager is a provocative Speaker, Writer and Consultant. His primary focus in on how we manage change, technology and the future.
In addition to speaking at conferences worldwide, he's also written monthly columns for Municipal World and Computing Canada.
His goal is always to question what we think is so, and in so doing perhaps open up new opportunities.
If you'd like permission to reprint any of Peter's articles, please contact him directly.
You can contact him at
pdejager@technobility.com
Or sign the Guest Book and he'll get back to you.
More importantly… why should anyone read it?
When it comes to human interactions, especially the interactions of daily commerce, there is very little random activity. An observer might not understand the reasons behind each individual exchange, but they exist.
When you or I make a purchase, we do so after going through some type of thought process. I buy a particular car because I like the color, the promised gas mileage or the advertised promises. When you buy a computer, you bought it for the price, performance or ability to run the latest software. These reasons are uniquely personal and defy external analysis, particularly when a number of personal preferences are competing for final control of the purchase.
However, our purchasing decisions are made up of more than just these personal preferences. There are also some underlying rules of purchase. Simple examples include:
- We do not knowingly pay more for an item if an identical item is sitting next to it on the shelf.
- We always attempt to benefit from the transaction, in other words we value what we’re buying more than we value the amount we’re willing to pay for it.
- If we stop buying product ‘X’ in lieu of product ‘Y’ then it’s because ‘Y’ is now more important to us than ‘X’ once was.
If we can identify reasoning processes common to all purchasing decisions, albeit unknowingly, then it becomes easier to predict behavior. If we can predict behavior trigger points driving the purchasing decision, then we can take advantage of new opportunities by positioning ourselves, and our existing consumer base, to safely ride the structural transition.
All purchasing decisions are made in the pursuit of an elusive goal. We make purchases to gain more control over our surroundings and to simplify our lives. In following this drive we’re attempting to make our lives more enjoyable and easier to experience.
This simplification strikes to the heart of innovation, in particular why some products succeed beyond all belief and why others fail with a whimper. There are numerous examples of where there is a mismatch between the product, its defined benefit and how it interacts with the context of the consumer’s life in which the product is supposed to operate.
Motorola’s Iridium phone is an example. Marketed as the mobile phone for the modern business person, it ignored an obvious conflict of two realities.
The market they were targeting spent the vast majority of their time in large modern buildings.
The phone system they were marketing did not operate inside large modern buildings.
No matter how low they dropped the price, no matter how much money was thrown into marketing, the fact remained that the Iridium phone flew in the face of the consumer’s drive towards control and enjoyment. To use the phone, one had to exit the building and stand outside in the elements. This introduced an unacceptable level inconvenience to the consumer’s life and placed them at the mercy of, rather than in control of, the communication process.
The Vapor Point is the name I've given to the ultimate consequence of this drive towards control and simplicity that knowledgeable suppliers can capitalize upon, if not control. It provides an interesting perspective on how, why, when and at what rate consumers will adopt various 'technologies'… It is an attempt to explain why products deemed “new in concept or application or significantly new in cost/benefit” rise in popularity. In consequence, it also provides a leading indicator of why some much-favored products experience rapid decline.
The Vapor Point is an exploration of business experiences past, present and future, intended to identify critical decision drivers vital to understanding major turning points in consumer markets. It provides a different perspective to the stories we have all lived or read about from time to time. It is hoped that these experiences viewed through a different lens, together with some intriguing technical conclusions will lead us, if not to some hidden truths, then at least to some useful discussion.
The prerequisite for reading is curiosity, an open mind, and an ability to observe the world around us. Our objective is to present a different view of what we think we already understand.
Yours truly
Peter de Jager
© 2007 Peter de Jager – Peter is a keynote speaker focused on change management issues, with special attention to issues relating to change management.
You can contact him at pdejager@technobility.com
For
reprint permissions click here.
I'd appreciate reading your comments
regarding this article... please take the time to respond.
Resources: