Research with existing customers


Problem:

All too often companies research their own current customers exclusively and fail to talk to non-customers. Additionally, some companies fall into the trap of asking existing customers what else they would like to buy from them. In some cases, especially with high-tech or new-to-world products, customers can be of little help to companies when determining whether or not to proceed with an innovation. While fuzzy front-end user research works well for most products, it tends not to work well for radically or completely disruptive innovations. For example, after World War II, IBM asked a consulting firm to find out if customers might be interested in a computer. The consulting firm reported back that no one really wanted a computer. Had IBM listened, the computer would not have been made.

Similarly, Henry Ford once said, "Had I asked customers what they wanted, they would have said a faster horse."

Question:

1. Explain why and how user research with existing customers can prevent true innovation.

Compose your answer as an MS Word document (Arial 12).

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Strategic Management: Research with existing customers
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