DK Untitled
Daniel Kahneman, Nobel Prize winner in economics.

Products, Services, and Prospect Theory

Behavioral science is now an influential part of economics. It needs to become a more important part of the discipline of innovation. Although the discussion below is somewhat speculative, it highlights important perceptual attributes of “customer value.” Prospect Theory inspired this discussion, but the focus is quite different. Therefore I call it “Customer Value Analysis,” a model to help better evaluate the relative merits of different forms and amounts of customer value. (more…)