9x Effect

The failure rate of a new product can be as high as 40% to 90%. Why is that? The 9x Effect: your new product must be nine times better than existing alternatives to win the market.

• Companies often overestimate new products by three times.
  • They are driven by dissatisfaction with the status quo and believe that innovation is effective, which leads them to create this new product.
  • The IKEA Effect: effort can increase a worker's affection for the outcome of their labor.
  • They view innovation as an important criterion.
• Consumers often underestimate new products by three times.
  • They feel satisfied with the status quo and have an aversion to change.
  • Due to a lack of understanding of the product, consumers often hold a skeptical attitude toward new products.