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Built to Love by Jonathan Cagan, Peter Boatwright

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CHAPTER 2Profitability of Emotions

It all gets back to money at some point, and the question of whether or not it is profitable for your firm to provide product emotions. A cost-benefit analysis is a relatively straightforward task for how a product functions. Take, for example, a technology that would increase fuel efficiency of existing cars, adding three extra miles of travel for each gallon of gasoline. That efficiency translates into real money for drivers. Extra fuel efficiency can be valued by how much drivers save in dollars. Firms can then trade off the driver’s fuel-cost savings with the cost of manufacturing and delivering that fuel-efficient technology. If the amount that drivers save dramatically exceeds the cost of providing it ...

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