Functional Appeal to Buyers

Functional Appeal to Buyers - Blue Ocean Strategy Glossary

Functional Appeal to Buyers refers to the functional utility buyers receive from a business or product/service based on basic calculations of utility and price. Competition in an industry tends to converge on one of two possible basis of appeal. Some industries focus principally on price and function based largely on calculations of utility; their appeal is functional. Other industries compete largely on feelings; their appeal is emotional. Yet what many companies fail to see is that the appeal of most products or services is rarely intrinsically one or the other. When companies are willing to challenge the functional/emotional orientation of their industry, they can often discover insights to create new market space. For example, if an industry is largely focused on a functional basis of appeal, ask: "What emotional elements can we raise or create to infuse our commodity products with new life by adding a dose of emotion?" See Six Paths Framework.

Source: BOS Terms, Functional Appeal to Buyers - Blue Ocean Strategy Glossary, Business Strategy at blueoceanstrategy.com