Being the first entrant and getting stuck in the middle

2017 ◽  
Vol 51 (7/8) ◽  
pp. 1178-1196 ◽  
Author(s):  
Elisa Montaguti ◽  
Alessandra Zammit
Keyword(s):  
Design Methodology ◽  
Decision Rules ◽  
New Product ◽  
Decision Strategy ◽  
Extreme Position ◽  
Content Type ◽  
Product Categories ◽  
Relative Disadvantage ◽  
Pioneering Advantage ◽  
Practical Implications

Purpose This paper aims to examine how pioneering advantage interacts with the compromise effect generated by new product entries. Building on prior work on pioneering advantage and extreme aversion, this research moves toward understanding how the choice share of a pioneer realigns as a consequence of new product entries generating compromise-like scenarios. Design/methodology/approach The authors run three experiments to test their propositions. The authors present one study which documents the effect. The second study provides process evidence. The third study suggests how brands can neutralize the adverse effect on their share generated by the followers’ entry/positioning. Findings In three studies, the authors showed that when a pioneering product becomes intermediate in a choice set, its share is more adversely affected than when it becomes extreme. The authors show that this depends on consumers’ propensity to use non-compensatory decision rules in the presence of a pioneering alternative. The authors also document that the relative disadvantage of the intermediate pioneer can be overcome when the reasons for selecting an intermediate alternative based on a compensatory decision rule are restored. Practical implications The research provides guidelines for managers wanting to enter product categories where a pioneer already exists. The authors show that opting for an extreme position that renders the pioneer intermediate can be rewarding. In contrast, being the second extreme player in a market where the pioneer becomes extreme reduces the expected share of this last entrant. Originality/value The authors’ contribution is in showing that this decision strategy can clash with the rule consumers generally use in a compromise setting and that this clash generates two different effects when the pioneer becomes intermediate or extreme.

Examining the influences of perceived exclusivity and perceived rarity on consumers' perception of luxury

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xujia Wang ◽  
Billy Sung ◽  
Ian Phau
Keyword(s):  
Factor Analysis ◽  
Confirmatory Factor Analysis ◽  
Design Methodology ◽  
Marketing Strategies ◽  
Content Type ◽  
Product Categories ◽  
Theoretical Support ◽  
Confirmatory Factor ◽  
Luxury Market ◽  
Practical Implications

PurposeThe purpose of this study is to investigate how exclusivity and rarity (natural versus virtual) influence consumers' perceptions of luxury. Further, it examines whether exclusivity and rarity can function as distinct marketing strategies in today's luxury market environment.Design/methodology/approachOnline questionnaires were administered by adapting developed scales from prior research. Research stimuli were chosen from three luxury categories including bags, wine and cruise. Confirmatory factor analysis and multiple regressions were used to test the hypotheses.FindingsThe results confirmed that exclusivity, natural rarity and virtual rarity were perceived as relatively distinct constructs among our sample. Findings also highlighted that perceived natural rarity (PNR) has consistently emerged as a positive and significant contributor to consumers' perceptions of luxury across all three luxury categories. The influence of perceived exclusivity (PE) on perceptions of luxury has also shown to be significant for two product categories (luxury bag and luxury wine), whereas perceived virtual rarity (PVR) did not show any significant effects across all three categories.Practical implicationsThe results indicate that consumers perceive natural rarity, virtual rarity and exclusivity as relatively distinctive marketing strategies. This suggests that luxury businesses can adopt each strategy independently to achieve desired marketing outcomes.Originality/valueThis study offers theoretical support for the proposition that exclusivity and rarity may have different functions in luxury marketing implementations. It provides empirical evidence showing the distinctiveness of perceived exclusivity and perceived rarity, which have not be done in previous research.

Best of both worlds

2021 ◽  
Vol 37 (3) ◽  
pp. 21-23
Keyword(s):  
Design Methodology ◽  
Reading Time ◽  
Negative Impact ◽  
New Product ◽  
Innovation Strategy ◽  
Content Type ◽  
Strategic Approach ◽  
Pertinent Information ◽  
Product Launches ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings How firms perform with new product launches significantly depends on the strategic approach adopted. Both innovation and imitation offer specific benefits but have risks attached too. By adopting a combination innovation strategy, it is possible for organizations to exploit the advantages of each approach and also minimize any negative impact from these risks. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Firms seek net benefits of consumer creativity

2015 ◽  
Vol 31 (5) ◽  
pp. 19-21
Keyword(s):  
Design Methodology ◽  
Reading Time ◽  
New Product ◽  
Control Group ◽  
Content Type ◽  
Online Retailers ◽  
Pertinent Information ◽  
Net Benefits ◽  
Consumer Creativity ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – Online retailers are increasingly encouraging consumers to have some creative participation in relation to advertising of their products. But just how effective is this input? This paper put the issue to the test by getting volunteers to do some genuinely creative work, while a control group merely takes part in a non-creative fashion. Among the findings, it emerges that attitudes in the two groups vary depending on the “fit” of a product - whether, for example, companies are exploring new product territory. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

An experimental study of the effect of packaging colour on children's evaluation of packaging and attitude towards the brand

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nora Bezaz ◽  
Mathieu Kacha
Keyword(s):  
Design Methodology ◽  
Food Product ◽  
Content Type ◽  
Point Of Sale ◽  
Product Categories ◽  
Healthy Diets ◽  
Marketing Tool ◽  
Age Features ◽  
Practical Implications ◽  
Additional Product

PurposeThis article aims to determine how packaging colour (hue, saturation and brightness) for a healthy food product might influence children's evaluation of the packaging and their attitude towards the brand.Design/methodology/approachAn experiment involving 157 children (7–12 years of age) features a within-subject, factorial design. The product selected for this experiment is an unknown brand of orange juice.FindingsEach colour dimension on packaging exerts an impact on children's evaluation of the packaging and attitude towards the brand. Therefore, the colour featured on packaging can be an effective lever for action to ensure and enhance children's healthy diets.Research limitations/implicationsFurther research should investigate these effects across additional product categories, brands and colours.Practical implicationsPackaging is an important marketing tool that influences children's evaluation of the packaging and attitude towards the brand, especially at the point of sale. To understand and exploit these packaging colour effects appropriately for healthy products, it is crucial to understand the effects of various packaging colour dimensions.Originality/valueLittle prior research has addressed the effects of packaging on children's responses, especially by accounting for multiple colour dimensions. Nor has extant research identified how packaging colour dimensions can affect children's evaluation and brand attitude. Especially in consideration of the growing problem of childhood obesity, it is important to give marketers effective ways to promote healthy products.

Effective collaboration between multiple stakeholders

2020 ◽  
Vol 37 (1) ◽  
pp. 21-24
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Design Methodology ◽  
Reading Time ◽  
New Product ◽  
Multiple Stakeholders ◽  
Content Type ◽  
Pertinent Information ◽  
Collaboration Process ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Firms are increasingly partnering with multiple stakeholders to enhance new product development. The inherent diversity within such arrangements can be successfully managed when trust prevails between different partners involved. By utilizing different strategies, organizations are able to build trust and transparency throughout each stage of the collaboration process. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Participative leadership and personal identification

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Operating System ◽  
Design Methodology ◽  
Reading Time ◽  
New Product ◽  
Personal Identification ◽  
Participative Leadership ◽  
Holy Grail ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds his/her own impartial comments and places the articles in context. Findings The Holy Grail in business can mean different things to different people, but it is always represented as a good thing. It is usually something intangible, just out of reach for most mortal businessmen and women. Perhaps it is a sales target just out of reach, or a new product that will revive the fortunes of a moribund company. For others, it is something that has already been achieved, or that can be emulated in a parallel sector – the Apple iPhone, the Ford Model T or Microsoft’s Windows operating system. For those companies, they created their own Holy Grail, and boy did it deliver untold riches for them. Practical implications This paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Finding ways to optimize new product development

2021 ◽  
Vol 37 (4) ◽  
pp. 6-9
Keyword(s):  
Product Development ◽  
Case Studies ◽  
New Product Development ◽  
Design Methodology ◽  
Reading Time ◽  
New Product ◽  
Cutting Edge ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings A dual focus on exploitation and exploration can help companies to enhance their new product development activities. Identifying factors with potential to facilitate or impede the process will enable closer collaborations both internally and with suppliers to increase the firm’s ambidexterity. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Waste in NPD processes of German SMEs

2016 ◽  
Vol 65 (4) ◽  
pp. 532-553 ◽  
Author(s):  
Tino Woschke ◽  
Heiko Haase ◽  
Arndt Lautenschläger
Keyword(s):  
New Product Development ◽  
Design Methodology ◽  
Resource Constraints ◽  
Waiting Times ◽  
Contemporary Literature ◽  
New Product ◽  
Content Type ◽  
Face To Face ◽  
Key Informant ◽  
Practical Implications

Purpose – This study deals with waste in New Product Development (NPD) processes of SMEs. The purpose of this paper is to reveal opportunities for SMEs to overcome resource constraints in their NPD process. Design/methodology/approach – The authors employed qualitative key informant interviews. This design was chosen because research in this field is still limited. The authors performed 49 interviews in engineering-oriented German SMEs to examine the dimension of waste in NPD processes. The data were collected by conducting semi-structured, face-to-face interviews. Findings – The study highlights substantial waste types such as waiting times, rework and duplication of work. In contrast to contemporary literature, waste of material is considered to be relevant in particular for NPD processes of SMEs. In addition to that, the authors found that waste drivers differ to a great extent between the study and the hitherto literature on larger companies. Research limitations/implications – The overall outcome of this study can help organisations to address waste in NPD more thoroughly. The research presented was not specifically designed to draw statistical generalisations. For this reason, the results may not be applicable to all SMEs. Practical implications – Based on waiting times as the major waste type in NPD processes of SMEs, the authors claim that firms should pay special attention to disruptions of these processes. Originality/value – The paper gives insights into current waste types in the NPD processes of SMEs. Moreover, it uncovers the NPD activities which can lead to waste.

Agile’s ten implementation challenges

2016 ◽  
Vol 44 (5) ◽  
pp. 15-20 ◽  
Author(s):  
Stephen Denning
Keyword(s):  
21St Century ◽  
Design Methodology ◽  
New Product ◽  
Content Type ◽  
Implementation Challenges ◽  
Customer Feedback ◽  
Agile Methodology ◽  
The Future ◽  
Practical Implications ◽  
Self Organizing

Purpose By learning how to overcome implementation challenges, the Agile methodology can enable organizations to cope with the 21st Century marketplace and deliver what customers expect and demand: easy, quick, convenient, personalized responsiveness at scale.” Design/methodology/approach The 10 major implementation challenges are addressed. Findings Agile offers a methodology that can improve the chances of building a new product or service that people will actually buy, use and like. Practical implications A key Agile principle – doing work in small iterative cycles with customer feedback at the end of each cycle – is a transformative idea. Originality/value The author has recently made on-site visits to leading corporations that have adopted Agile. The “Agile” managers he met recognize that the future of their firm depends on inspiring those doing the work to accelerate innovation and add genuine value to customer, that enhancing that capacity depends on giving autonomy to self-organizing teams within broad parameters of control.

Customer-centered innovation: improving the odds for success

2017 ◽  
Vol 45 (2) ◽  
pp. 3-11
Author(s):  
Brian Leavy
Keyword(s):  
Design Methodology ◽  
New Product ◽  
Marketing Concept ◽  
Customer Choice ◽  
Content Type ◽  
Corporate Leaders ◽  
Track Record ◽  
Service Introduction ◽  
First Time ◽  
Practical Implications

Purpose This masterclass examines how customer-centric marketing, using new perspectives developed by Clayton Christensen and others, can guide new product and service innovation. Christensen’s Jobs Theory revolves around the observation that “customers don’t buy products or services,” but rather “pull them into their lives to make progress” in some way that is particularly valuable to them.” Design/methodology/approach Two recent books are discussed in detail– Competing Against Luck: The Story of Innovation and Customer Choice (2016), by Christensen and co-authors Taddy Hall, Karen Dillon and David Duncan and Sense & Respond: How Successful Organizations Listen to Customers and Create New Products Continuously (2017) by design and innovation experts, Jeff Gothelf and Josh Seiden Findings In coming to view innovation through the lens of Jobs Theory, what you see is not so much the customer at the center of the innovation universe, but “the customer’s Job to Be Done,”which “may seem like a small distinction, but, in reality, “it changes everything.” Practical Implications Identifying a well-defined Job to Be Done offers a kind of innovation blueprint which is different’ from the traditional marketing concept of “needs” because of the ‘much higher degree of specificity required to identify precisely what it is you are trying to solve for in particular use-case contexts. Originality/value When applied astutely, the concept of “Job to Be Done”can improve a company’s track record at new product or service introduction. For the first time it gives managers and other corporate leaders a guidebook for making innovation initiatives more likely to be successful.

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