THE ROLE OF DEFAULTS IN PREVENTING INNOVATION REJECTION

2015 ◽  
Vol 19 (02) ◽  
pp. 1550023 ◽  
Author(s):  
SABINE KUESTER ◽  
SILKE C. HESS ◽  
ANDREAS HERRMANN
Keyword(s):  
Perceived Risk ◽  
New Product ◽  
Status Quo ◽  
Product Launch ◽  
Choice Data ◽  
New Product Launch ◽  
Opt Out ◽  
The Status ◽  
Managerial Implications

Innovation rejection remains a serious problem for companies introducing new products, as customers may overvalue products they already own and underestimate the innovation's advantage. Choice data from two experiments demonstrate that innovation rejection is determined by (dis)satisfaction with the status quo and that defaults are powerful instruments to overcome the status quo effect in innovation decision making. Innovation rejection decreases significantly if the innovation is implemented as a default, an option customers select unless they actively opt out. Furthermore, it is observed that implementing the innovation as the default significantly increases the perceived value and decreases the perceived risk of the innovation. Taking into account customer expertise, the authors detect that defaults are more effective in reducing innovation rejection for novices. The study derives managerial implications for new product launch management that aims at preventing innovation rejection.

The role and impact of firm’s strategic orientations on launch performance: significance of relationship orientation

2016 ◽  
Vol 31 (5) ◽  
pp. 625-639 ◽  
Author(s):  
Minna Matikainen ◽  
Harri Terho ◽  
Petri Parvinen ◽  
Anne Juppo
Keyword(s):  
New Product ◽  
Product Launch ◽  
Cross Sectional ◽  
Content Type ◽  
Strategic Orientations ◽  
New Product Launch ◽  
Relationship Orientation ◽  
Performance Effects ◽  
Mediating Mechanisms

Purpose This study examines the role and relative impact of market orientation, product orientation and relationship orientation on new product launch performance, investigating product advantage and market-based assets as alternative mediating mechanisms, which link these strategic orientations to launch performance. Design/methodology/approach Survey data from the pharmaceutical industry are used to test hypotheses in the research model using partial least squares modeling. Findings Findings show that while each examined strategic orientation relates positively to launch performance, their performance effects and related mechanisms vary significantly. Results demonstrate a firm’s relationship orientation is the strongest predictor of launch performance, and accumulated market-based assets represent an alternative relational mediator besides product advantage linking firms’ orientations and launch performance. Research limitations/implications The empirical study is based on cross-sectional data collected in one specific industry sector. The authors encourage researchers to confirm the key findings in different industry and other contextual settings. Practical implications New product launch can be effectively managed as a relational activity. Firms benefit from paying explicit attention to strategic orientations and relationships. Especially, top management should foster a relationship-oriented organizational culture, develop relational competences and fully use the firm’s accumulated market-based assets for increased launch performance. Originality/value The study extends knowledge on the role of strategic orientations in launch performance by highlighting the significance of relationship orientations and providing novel knowledge on the key mediating mechanisms between strategic orientations and launch performance.

scholarly journals Seeding strategies for new product launch: The role of negative word-of-mouth

PLoS ONE ◽  
2018 ◽  
Vol 13 (11) ◽  
pp. e0206736
Author(s):  
Fang Cui ◽  
Hai-hua Hu ◽  
Wen-tian Cui ◽  
Ying Xie
Keyword(s):  
Word Of Mouth ◽  
New Product ◽  
Negative Word ◽  
Product Launch ◽  
New Product Launch

New product selling challenges (key insights in the ICT sector)

2018 ◽  
Vol 10 (3) ◽  
pp. 291-319 ◽  
Author(s):  
Archana Sharma ◽  
Mahim Sagar
Keyword(s):  
Group Discussion ◽  
New Product ◽  
Sales Force ◽  
Product Launch ◽  
Content Type ◽  
Product Success ◽  
New Product Launch ◽  
Information And Communication ◽  
The Relationship

Purpose The purpose of this study is to identify crucial and new product selling challenges in the Information and Communication Technology (ICT) sector for the companies operating in Business to Business (B2B) sales setting. Design/methodology/approach This study uses qualitative techniques of focus group discussion, semi-structure interviews and thematic content analysis to explore crucial and new product selling challenges. Total interpretive structuring modeling (TISM) is used to create a hierarchy amongst the factors and interpret the relationships amongst them. Findings This study identifies crucial challenges for the ICT sector. The TISM framework helped in identifying variables and explained the relationship between the identified variables. Research limitations/implications The findings may have been affected by the small size of the sample, the research was restricted to Indian market only and the result would have varied across cultures and different domains. Practical implications Companies in the ICT sector are eager to develop new products but fail to sell it. Salespeople play a crucial role in diffusing the new product in the market. Addressing the challenges faced by salespeople will improve not only the sales of the new product but also the overall the operational efficiency of the sales force. Social implications Although several studies have suggested that sales force is the major contributing factor to new product success, few studies have focused on the role of salespeople in new product launch, particularly with respect to challenges in new product selling. Originality/value This is the first study to identify new product selling challenges in the ICT sector.

The interactive effect of insight and cuteness in driving purchase likelihood: a lay belief of creativity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Felix Septianto ◽  
Rokhima Rostiani ◽  
Widya Paramita
Keyword(s):  
New Products ◽  
Interactive Effect ◽  
Experimental Studies ◽  
New Product ◽  
Underlying Mechanism ◽  
Content Type ◽  
Narrative Study ◽  
Managerial Implications ◽  
Purchase Likelihood

PurposeWhile new product introductions can potentially promote growth and benefit for brands, it remains unclear how marketers can develop effective communication strategies to increase the chance of success for new products. The present research investigates the role of cuteness in leveraging the effectiveness of a narrative emphasizing an insight versus an effort in this regard.Design/methodology/approachThis research presents two experimental studies. Study 1 examines the moderating role of cuteness on the likelihood of purchasing a new product featuring an insight-based (vs effort-based) narrative. Study 2 extends the findings of Study 1 using different stimuli and establishes the underlying mechanism.FindingsResults show that when a cuteness appeal is present, an insight-based (vs effort-based) narrative will lead to a higher purchase likelihood. However, these differences do not emerge when a cuteness appeal is absent (a control condition). Further, perceived brand creativeness will mediate this effect.Originality/valueThe findings of this research contribute to the literature on lay belief of creativity, cuteness, and product narrative, as well as managerial implications on how to promote new products.

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