The Backlash Effect

I recently read an article, rather watched a video, detailing a marketing phenomenon known as the Backlash effect. The effect essentially describes how the early adopters of a product react after the mass market begins to use the same product. Early adopters are characterized as such because they are the ones in society who always want to be on the cutting edge of innovation. They derive a high sense of utility via the feeling of exclusivity they garner from being one of the first to use a product, even though this often means paying a premium. However, once a product reaches the mass market, Early adopters react negatively towards the originally product, hence the term backlashing. As such, companies must conduct a thorough cost-benefit analysis to determine if it is worth reaching the mass market with their product. The idea of backlashing is an interesting social and psychology phenomenon, which allows us a peak into the complex world of consumer psychology. Its an important concept that all companies, organizations and clubs must consider when expanding their consumer base. Two professors here at Wharton have done the quantitative research that supports this idea. Here's a short, yet interesting video regarding the concept: