Book | 2016

Innovation Equity: Assessing and Managing the Monetary Value of New Products and Services

by Elie Ofek, Eitan Muller and Barak Libai

Abstract

This book bridges the gap between what academics know, and what innovation stakeholders—from managers, to investors, to analysts, to consumers—need to know about how new products and services are expected to perform in the marketplace. The book develops a compelling framework that connects the rich academic knowledge on innovation diffusion with that on customer relationship management, thereby marrying our understanding of how consumers adopt innovations with how firms effectively acquire, serve, and retain customers. The result is a lens through which to view the commercial potential of innovations and a powerful vehicle for placing a dollar value on new products and services. The book shows how the framework can be used to evaluate the implications of marketing actions, consumer heterogeneity, competition, successive technology generations, and globalization. The exposition is filled with vivid examples from a wide array of domains (video games, wireless phone services, computers, tablets, satellite radio, electric vehicles, cloud-based software, pharmaceuticals, and more), which demonstrate how the topics covered apply to real-world situations. A set of hands-on tools for implementing the various topics can be accessed.

Keywords: innovation; technology diffusion; new products; customer lifetime value; monetization strategy; social influence; innovation adoption; marketing strategy; Forecasting demand; Commercialization; Marketing Strategy; Practice; Customer Value and Value Chain; Research; Innovation and Management; Technology Adoption; Forecasting and Prediction; Product Development;

Citation:

Ofek, Elie, Eitan Muller, and Barak Libai. Innovation Equity: Assessing and Managing the Monetary Value of New Products and Services. University of Chicago Press, 2016.

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