Product-Market Fit

0xcafebabe's space

Product-market fit has always been a fairly abstract concept making it difficult to know when you have actually achieved it or how you can achieve it.

In Eager Seller and Stony Buyers, author John T. Gourville describe degree of behavior change required vs degree of product change involved (value proposition) as metric to predict product success.

1. People evaluate the attractiveness of an alternative based not on its objective or actual value, but on its subjective or perceived value relative to a reference point (usually the products they already have). Due to the endowment effect, consumers overweight 3X the benefits of product they already have. Developers/Companies overweight 3X the new product’s benefits. (So, a new product need to be 10X better to be accepted by customers.)

2. In order to adopt a new product, some degree of behaviour change is usually required. Irrationally, consumers consider behaviour change as loss in…

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