Launch strategy, launch tactics, and demand outcomes

Guiltinan, Joseph P.

doi:10.1016/s0737-6782(99)00013-2

Cited by 102 publications

(106 citation statements)

References 41 publications

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“…In the high-tech industry, launching on time is associated with large market share and high price premiums. An effective launch strategy enhances aspects of market performance including launch objectives, product position, and market segment (Guiltinan, 1999). Delaying products results in a low market share in the long term (Robinson & Chiang, 2002;Song, Di Benedetto & Zhao, 1999), and competitors overcome firms that delay product launch (Crawford & Di Benedetto, 2008).…”

Section: New Product Performance Of Contract Manufacturersmentioning

confidence: 99%

Customer orientation on new product activities and performance from the contract manufacturer’s viewpoint

Lee¹,

Kou²

2014

SAJBM

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Studies have suggested the positive effect of customer orientation on superior performance. However, these studies have not shown how to covert customer orientation into superior performance through new product development (NPD) activities. The purpose of this study was to fill the gap between customer orientation and new product performance and elucidate the mediating influence of product launch, product development capability, and innovativeness on the relationship between customer orientation and new product performance. From the contract manufacturer's perspective, it was proposed that customer orientation toward new product performance affects NPD activities. Focus was placed on product launch because the launch stage is the most expensive and riskiest aspect of NPD activities. Focus was also given to product development capability, which facilitates superior product performance. Product innovativeness also plays a crucial role in building competitive advantage. NPD activities include product launch, product development capability, and product innovativeness. We used a questionnaire to collect data to test the postulated research model and hypotheses from project, account and product managers in the high-tech industry. The results demonstrated the strong positive effect of customer orientation on NPD activities, and NPD activities play crucial roles as mediators between customer orientation and new product performance.

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Section: New Product Performance Of Contract Manufacturersmentioning

confidence: 99%

Customer orientation on new product activities and performance from the contract manufacturer’s viewpoint

Lee¹,

Kou²

2014

SAJBM

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show abstract

“…Second, the finding that price has a negative effect on the sales of radical new products with long development times conforms to our expectations. Charging a high price is clearly too costly to firms taking more time to develop radical new products as the new product's break-even time is extended (Ali et al 1995), and demand is unnecessarily restricted to those customers willing and able to pay a high price (Guiltinan 1999). Third, the results show that price has no effect on sales for incremental new products with short development times.…”

Section: Discussionmentioning

confidence: 90%

“…As a result, the radical new product's ability to meet customer needs may be compromised, and customers are likely to adopt a wait-and-see strategy. The launch literature suggests that to surmount these adoption barriers and increase diffusion firms may set a lower price at the moment of launch (Guiltinan 1999). Such a price discount rewards customers for adopting an underdeveloped new product (Crawford and Di Benedetto 2006).…”

Section: Hypothesesmentioning

confidence: 99%

“…Firms with lengthier development times have usually incurred higher development costs and by charging a premium price demand is unnecessarily restricted to those customers willing and able to pay a high price. In contrast, charging a low price for a radical new product with a high advantage stimulates demand and expands the potential market beyond high-end customers (Guiltinan 1999). The sales benefits of a reduced price are expected to be significant for radical new products with an uncompromised product advantage (Calantone and Di Benedetto 2000).…”

Section: Hypothesesmentioning

confidence: 99%

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Development time and new product sales: A contingency analysis of product innovativeness and price

2009

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Opposing theories and conflicting empirical results with regard to the effect of development time on new product sales suggest the need for a contingency analysis into factors affecting this relationship. This study uses a unique combination of accounting and perceptual data from 129 product development projects to test the combined contingency effect of product innovativeness and new product price on the relationship between development time and new product sales. The results show that for radically new products with short development times, price has no effect on new product sales. When the development time is long, price has a negative effect on the sales of radical new products. The findings additionally show that price has no effect on sales for incremental new products with short development times and a negative effect for incremental new products with long development times. Together, these findings shed new light on the relationship between development time and new product sales. Keywords Development time . Product innovativeness . New product priceMany studies posit that shortening the new product's development time brings about an increased level of cohesion among team members which results in fewer mistakes that might cause problems after product launch (see, e.g., Chen et al. 2005). Faster development has also been linked with improved coordination and subsequent reductions in costly work redundancy, errors, and recycling that will cause quality problems after adoption (Harter et al. 2000). Concentration on speed also forces a Market Lett

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“…Strategic decisions are often finalized early in the new product development process. Strategic decisions are target market decisions (niche versus mass market), leader versus follower decisions, and decisions on relative inno-vativeness (Montoya-Weiss and Calantone, 1994;Guiltinan, 1999). Tactical decisions include marketing mix decisions such as product branding, promotion activities, pricing decisions, sales and distribution support, and timing decisions.…”

Section: Launch Strategymentioning

confidence: 99%

Przedsiębiorczość w teorii i badaniach. Perspektywa młodych badaczy

Richert–Kaźmierska¹,

Polańska²

2017

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Launch strategy, launch tactics, and demand outcomes

Cited by 102 publications

References 41 publications

Customer orientation on new product activities and performance from the contract manufacturer’s viewpoint

Customer orientation on new product activities and performance from the contract manufacturer’s viewpoint

Development time and new product sales: A contingency analysis of product innovativeness and price

Przedsiębiorczość w teorii i badaniach. Perspektywa młodych badaczy

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