ABSTRACT
Why do entrepreneurs so often design products that customers do not want? First, latent customer needs are complex and multifaceted, and customers frequently cannot express them clearly. Consequently, an entrepreneur’s
interpretation of these needs may be inaccurate, resulting in a suboptimal new product. Another reason may be that the start-up encounters technological problems and lacks the funds to develop a complete and suitable new product. These factors will undermine the application’s quality and functionality, reducing its attractiveness for prospective customers. Third, many entrepreneurs lack marketing and sales knowledge; as a result, they fail to understand that there is more to a product than just the nuts and bolts. They fail to understand psychological resistance of customers to change their behaviour and overestimate the customer value of their innovation. Consequently, they also underestimate the marketing effort needed.
