Latent Need

Latent Need

Latent Need Jonathan Poland

A latent need is a customer need that is not currently being met by the market and is not actively requested by customers. As a result, it may not be identified through market research. These needs are often referred to as “unknown” or “unstated” needs, as customers may not be aware of them. Latent needs can be uncovered through careful observation and analysis of customer behavior, as well as through the development of innovative products and services that address these unmet needs. The following are illustrative examples of a latent need.

Convenience

Products and services that save the customer time and effort. In the 1960s, few customers would have asked for a faster oven because they would have assumed it would burn the food. When the home microwave oven was first introduced in 1967 it didn’t sell particularly well for the first decade because customers were unaware of the technology.

Productivity

Tools that allow customers to accomplish more with their time. In 1990, few customers would have asked for an integrated global network of information, entertainment, commerce and communication but this is what they got with the commercialization of the internet beginning in the mid-1990s.

Usability

Products and services that are pleasing and productive to use. Customers often find faults in the usability of products and services and this commonly surfaces in market research. However, leaps forward in usability such as cut-and-paste and pinch-to-zoom weren’t obvious needs before their introduction.

Experience

Elements of the end-to-end customer experience of a product, service or environment. For example, the introduction of pervasive games that merge reality with digital game elements generated significant customer demand but wasn’t something customers were asking for before its introduction. Customers commonly asked for virtual reality but not mixed reality.

Efficiency

Tools that give you more output for input. For example, a digital twin that is used to manage infrastructure.

Quality of Life

Things that improve quality of life. For example, customers might be happy with concrete walls until they see a green wall for the first time.

Algorithmic Pricing Jonathan Poland

Algorithmic Pricing

Algorithmic pricing involves using automation to set prices dynamically based on a variety of factors, such as customer behavior, market…

Unknown Risk Jonathan Poland

Unknown Risk

An unknown risk is a potential loss that is not recognized or identified. In the context of risk management, unknown…

Payback Theory Jonathan Poland

Payback Theory

Let’s say you live in a town with two bakeries for sale at $1 million each. Both offer similar products…

Situational Awareness Jonathan Poland

Situational Awareness

Situational awareness (SA) is the ability to understand and effectively respond to a situation by being aware of what is…

Research Design Jonathan Poland

Research Design

Research design is the overall plan or approach that a researcher follows in order to study a particular research question.…

Aftermarket Jonathan Poland

Aftermarket

The aftermarket refers to the market for products and services that are used to upgrade, customize, repair, or maintain durable…

Target Costing Jonathan Poland

Target Costing

Target costing is a cost management approach that involves setting a target cost for a product or service and then…

What is a One Stop Shop? Jonathan Poland

What is a One Stop Shop?

A one stop shop is a business that offers a wide range of products and services from a single location,…

Cyber Security Jonathan Poland

Cyber Security

Cybersecurity is the practice of protecting computing resources from unauthorized access, use, modification, misdirection, or disruption. It is a critical…

Learn More

Risk Prevention Jonathan Poland

Risk Prevention

Risk prevention is the process of identifying, assessing, and mitigating potential risks that may arise in a given situation. It…

Environmental Issues Jonathan Poland

Environmental Issues

Human activities have caused many environmental problems that are harmful to ecosystems, quality of life, and health. These issues have…

Capital Jonathan Poland

Capital

Capital is an asset that is expected to produce future economic value. It is a productive resource that is used…

Beautiful Words Jonathan Poland

Beautiful Words

Beautiful words are words that have a mysterious, wondrous, or charming quality. They can also have a dark or conflicted…

Employee Costs Jonathan Poland

Employee Costs

Employee costs refer to all of the expenses that are incurred when hiring and employing an individual. These costs go…

Business Ethics Jonathan Poland

Business Ethics

Business ethics refer to the principles and values that guide the behavior of individuals and organizations in the business world.…

Capital Improvements Jonathan Poland

Capital Improvements

Capital improvements are investments in new assets or the improvement of existing assets that are intended to provide a long-term…

Business Values Jonathan Poland

Business Values

Business values are statements that reflect the ethical principles of a company. These values are intended to guide the company’s…

Barter Jonathan Poland

Barter

Barter is a system of exchange in which goods or services are traded for other goods or services, rather than…