## Tailoring your pitch style to the novelty of your idea will increase acceptance and investment## Tailoring your pitch style to the novelty of your idea will increase acceptance and investment Original and progressive ideas: When presenting groundbreaking ideas that challenge the status quo, Specific “method” approachThis means emphasizing practical details like product features, technological advancements, and user experience, which can help reduce the confusion that can come with a novel concept and demonstrate the feasibility and viability of your idea. Incremental and familiar ideas: For ideas that represent more gradual progress, The Abstract “Why” Approach It is more effective than a pitch because it outlines the overall vision or purpose of your idea and connects it to existing knowledge and expectations. By emphasizing the “why,” your pitch connects your idea to a familiar situation, making it more accessible and relatable to your audience. research result: A study by researchers at Bayes School of Business and others conducted an online survey experiment in which business students were asked to evaluate pitch decks. The results showed that: * For radically innovative ideas, concrete “how” pitches led to greater positive acceptance and willingness to invest. * For incrementally innovative ideas, abstract “why” pitches led to greater acceptance and investment support. Impact for entrepreneurs: The study advises entrepreneurs to tailor their presentation style to the novelty of their idea to maximize its appeal and attract investment. By adopting a concrete “how” approach for breakthrough ideas and a more abstract “why” approach for incremental innovations, entrepreneurs can effectively communicate the value and practicality of their concept. Future research: The findings suggest opportunities for further research, such as investigating the effectiveness of different pitching styles in different contexts (e.g., industries, audience characteristics) and examining how pitching styles interact with other factors (e.g., speaker credibility, audience motivation).
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By studying the style of presenting ideas to an audience, they found that presentations promoting radical ideas were better received when presented with a concrete, explanatory “how,” whereas progressive ideas were better received with an abstract “why” presentation.
Previous research has shown that experts like investors prefer concrete pitches that explain “how,” while laypeople like students and crowdfunders respond better to pitches that explain “why” an abstract idea.
Professor Simone Ferriani, Professor of Entrepreneurship at Bayes Business School (formerly Cass), City, University of London, said: “We wanted to identify the best way for entrepreneurs to pitch their ideas and gain public attention and investment. Could the way they pitch affect their success? What if you have a great idea, but pitch it in the wrong way? We wanted to explore which pitch styles are most effective for different types of ideas.”
To test this, the researchers conducted two experiments in which they asked business students to evaluate pitch decks through an online survey to see when new ideas are more likely to be accepted favorably. In their study, they used pitch decks from entrepreneurs and varied the originality of the idea and the style of abstract “why” versus concrete “how” the idea works. The researchers looked at how these factors affected the acceptance of the idea and willingness to support it.
The results show that your pitch strategy needs to match the novelty of your idea to make it more appealing and attract investment. The article, “Radically Specific or Gradually Abstract? The Contingent Role of Abstract and Concrete Framing in Pitching Novel Ideas,” Innovation: Organization and Management.
Professor Ferriani added: “Imagine a technology startup introducing a groundbreaking new virtual reality (VR) gaming platform that promises to revolutionize the gaming experience. Our findings suggest that its pitch to potential users should highlight specific usability details, such as advanced feedback technology, immersive 360-degree video and seamless integration with existing gaming consoles.”
“When an idea has the potential to disrupt the status quo, this explanatory approach is key to offsetting the disruption that the new idea will cause. Conversely, when an idea is more of a step forward than a leap, like incremental innovation, abstract language that explains the ‘why’ can be more effective.”
Dennis Falchetti, assistant professor of management at the George Washington University School of Business (GWSB), adds: “This strategy leverages your audience’s existing knowledge and expectations, connecting a new idea to a familiar concept and highlighting its place within a broader vision or goal.”
Gino Catani, professor of management and organization at New York University’s Stern School of Management, concludes: “This study recommends a tailored approach that describes the practical aspects for breakthrough innovations and focuses on the overall vision for incremental improvements. As the language of entrepreneurship continues to evolve, this study offers a compass for navigating the complex dance of persuasion and influence, providing a linguistic toolkit for turning novel concepts into easily accepted innovations.”
For more information:
Dennis Falchetti et al., “Radically Concrete or Gradually Abstract? The Contingent Role of Abstract and Concrete Frames in Proposing New Ideas.” innovation (2024). DOI: 10.1080/14479338.2024.2363254
Courtesy of City University London
Quote: Study shows entrepreneurs need to tweak their pitches based on the innovativeness of their ideas (July 10, 2024) Retrieved July 10, 2024 from https://phys.org/news/2024-07-entrepreneurs-tweak-pitches-based-idea.html
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