In many markets, inferior products can act as partial substitutes for more costly superior products.

FORBES: Connect

Does that mean companies with inferior products that deliver a consistently great customer experience can win your customers and dominate your market?

FORBES: Don't Waste Innovation on Products

"You've got teachers trying to retire with a reasonable standard of living, and people, probably making a lot more money than they are, trying to push them into inferior products" to earn high commissions, Mr. Lloyd says.

WSJ: Teachers' 403(b) Plans See Big Changes

And with the initial sales success of the iPhone 5 and the iPad Mini, both products which are measurably inferior to its competiton and yet more expensive, Apple may be right.

FORBES: The Trouble With Apple's iPad mini

Mr Christensen points out that innovators often start by offering products that are cheaper, but markedly inferior.

ECONOMIST: Schumpeter

The new products were low-end, dumb, shoddy, and in almost every way inferior.

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