The "dummy" concept is really interesting. It dwells in "information asymmetry"; markets where sellers know more than buyers tend to not function properly (shameless plug: I have written about this here http://blog.medusis.com/are-you-a-lemon).
Now, what can a given small company do about it? I think the two opposite strategies of trying to "drive away dummies" or "embrace them" are valid; what isn't as effective is trying to serve both dummies and experts by offering plans with wildly different pricing.
You probably need to make a choice: choose a positioning in either the "dummies" or "expert" space and serve only this population.
Now, what can a given small company do about it? I think the two opposite strategies of trying to "drive away dummies" or "embrace them" are valid; what isn't as effective is trying to serve both dummies and experts by offering plans with wildly different pricing.
You probably need to make a choice: choose a positioning in either the "dummies" or "expert" space and serve only this population.