Juan Valdez: Innovation in Caffeination

Michael I. Norton; Jeremy  Dann

Case | HBS Case Collection | February 2013 (Revised May 2013)

Juan Valdez: Innovation in Caffeination

Abstract

Corporate entrepreneurs attempt to revive Colombia's famous Juan Valdez brand in the age of Starbucks, with café chain and packaged coffee ventures. In the 1970s and 80s, the iconic "Juan Valdez" ingredient brand was the most recognized in the world of coffee. The success of advertising based on this character garnered the Colombian coffee industry price premiums in international markets, especially the US. By the 2000s, Colombia's coffee sector was being battered and its branding power diminished as café chains such as Starbucks increasingly captured profits in the value chain. In reaction, Colombia's coffee federation develops a semi-independent, for-profit branding arm—Procafecol—to rebuild the Juan Valdez brand. Procafecol launches the first Juan Valdez cafes and a packaged coffee line, putting Colombian coffee into competition with many of its traditional customers. The case examines the successes and failures of the first five years of the new strategy, encouraging discussion of what changes must be made to Procafecol's innovation program.

Keywords: innovation; branding; global business; Sales; marketing; retailing; corporate strategy; Organizational change; Corporate Entrepreneurship; Brands and Branding; Innovation and Invention;

Language: English

Format: Print

24 pages

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Citation:

Norton, Michael I., and Jeremy Dann. "Juan Valdez: Innovation in Caffeination." Harvard Business School Case 513-090, February 2013. (Revised May 2013.)

Article | Journal of Consumer Psychology

The Feeling of Not Knowing It All

Haiyang Yang, Ziv Carmon, Dan Ariely and Michael I. Norton

How do consumers assess their mastery of knowledge they have learned? We explore this question by investigating a common knowledge consumption situation: encountering opportunities for further learning. We argue and show that such opportunities can trigger a feeling-of-not-knowing-it-all (FONKIA), which lowers consumers’ confidence in their mastery of the knowledge they already possess. Specifically, listing optional follow-up readings at the conclusion of a course lowered students’ confidence in their mastery of the course material they had already learned (Study 1). Encountering an optional learning opportunity increased the FONKIA, which mediated the decreased confidence (Studies 2 and 3). We also document two moderators consistent with our conceptualization. First, participants primed with mastery (vs. instrumental) motivation were more negatively impacted when they encountered optional learning opportunities. Second, the more related the optional opportunities were to the target topic, the lower participants’ confidence in their mastery of what they had already learned. We conclude by discussing the implications of these findings, such as encouraging further learning or harming teaching evaluations.

Keywords: Knowledge consumption; Consumption of learning; Judgment of knowledge; Feeling ofknowing; Confidence in knowledge; WYSIATI; FONKIA; Knowledge Acquisition; Learning; Perception;

Citation:

Yang, Haiyang, Ziv Carmon, Dan Ariely, and Michael I. Norton. "The Feeling of Not Knowing It All." Journal of Consumer Psychology 29, no. 3 (July 2019): 455–462. View Details

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Juan Valdez: Innovation in Caffeination

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