New Product Preannouncement: Phantom Products and the Osborne Effect

2019 ◽  
Vol 65 (8) ◽  
pp. 3776-3799 ◽  
Author(s):  
Ram Rao ◽  
Ozge Turut
Keyword(s):  
Reference Point ◽  
Consumer Choice ◽  
Optimal Strategy ◽  
Consumer Preferences ◽  
Experimental Studies ◽  
New Product ◽  
Conventional Wisdom ◽  
Significant Lowering ◽  
Quality Product ◽  
Current Product

The mere preannouncement of a new product can affect consumer choice, thus complicating preannouncement strategy. This is because a preannounced product that is unavailable immediately can still be one of the alternatives in a consumer’s mind at the time of choice. Such unavailable products, also known as phantom products, influence the reference point that consumers compare alternatives to when making a choice, as has been widely demonstrated in experimental studies. Thus, in addition to encouraging consumers to postpone purchase in favor of a future product, preannouncement also changes their preference for the currently available products when consumers do not prefer to postpone. In this paper we explore preannouncement strategy by analyzing a model that incorporates the effect of new product preannouncement (NPP) on consumer preferences and compare the results with a benchmark case in which consumer preferences across the existing products are not influenced by preannouncement. We find that when we take into account the effect of NPP on consumer preferences across the existing products, although postponement of purchase by some consumers remains beneficial, the preference for the current product offering with a lower quality can suffer so much that the significant lowering of current profits is not offset by future gains. Thus, preannouncement may no longer be the optimal strategy for the firm with a lower-quality product, which in turn explains the “Osborne effect.” Our results also challenge the conventional wisdom in new product preannouncement literature. This paper was accepted by Juanjuan Zhang, marketing.

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.

A Framework for Choice Modeling in Usage Context-Based Design

2010 ◽  
Author(s):  
Lin He ◽  
Christopher Hoyle ◽  
Wei Chen ◽  
Jiliang Wang ◽  
Bernard Yannou
Keyword(s):  
Data Collection ◽  
Product Design ◽  
Consumer Choice ◽  
Choice Model ◽  
Consumer Preferences ◽  
Choice Modeling ◽  
Product Performance ◽  
Choice Data ◽  
Modeling Framework ◽  
Usage Context

Usage Context-Based Design (UCBD) is an area of growing interest within the design community. A framework and a step-by-step procedure for implementing consumer choice modeling in UCBD are presented in this work. To implement the proposed approach, methods for common usage identification, data collection, linking performance with usage context, and choice model estimation are developed. For data collection, a method of try-it-out choice experiments is presented. This method is necessary to account for the different choices respondents make conditional on the given usage context, which allows us to examine the influence of product design, customer profile, usage context attributes, and their interactions, on the choice process. Methods of data analysis are used to understand the collected choice data, as well as to understand clusters of similar customers and similar usage contexts. The choice modeling framework, which considers the influence of usage context on both the product performance, choice set and the consumer preferences, is presented as the key element of a quantitative usage context-based design process. In this framework, product performance is modeled as a function of both the product design and the usage context. Additionally, usage context enters into an individual customer’s utility function directly to capture its influence on product preferences. The entire process is illustrated with a case study of the design of a jigsaw.

scholarly journals NEW BRAND EQUITY ASPECT: THE EXAMPLE OF NEW CANDY PRODUCT CONSISTENCY QUALITY EQUITY

2018 ◽  
Author(s):  
Vitalija VANAGIENĖ
Keyword(s):  
Brand Equity ◽  
Consumer Choice ◽  
Food Product ◽  
New Product ◽  
Scientific Concept ◽  
Equity Structure ◽  
Literature Synthesis ◽  
Graphic Modeling ◽  
Educational Thinking

The methodology of study is based on a new educational thinking – to use analytics to build ideas and make them better. The article analyzes the equity of a new product in terms of consistency of the equity of a new brand. The aim of the study - to identify the new product's consistency quality importance on the new brand equity when the customer chooses a new product (the example: candy in boxes). Theoretical study was based on the analysis of scientific literature, synthesis, logical generalisation, graphic modeling and a survey (2017 (n = 416)). Analysing the equity of the new product consistency for the new brand equity structure. Recognizing that consumer choice depends on the equity of the new consistency of the product offered to him by the firm's offer, the practical test of the scientific concept has been chosen from the original study, analyzing the equity of the candys in boxes as a new product for the consumer. The results allow us to make assumptions about what elements of the new consistency of the product could influence the success of the new brand on the candy market. The consistency quality of a new food product is essential factor of a new brand equity. The results of the study lead to conclusion that new food product (candys in boxes) Lithuanian shoppers perceive the importance of consistency quality and assess the identity (as unique products) (between high and medium value), which is forming a positive image of the product (quality assurance). The results of the research can be applied to the needs of the consumers of the Lithuanian candys in boxes market.

scholarly journals CREATION OF A MINIATURE AMPULE OF A REFERENCE POINT FOR THE ATTESTATION OF LIQUID THERMOSTATS

2020 ◽  
Vol 7 (1) ◽  
pp. 45-49
Author(s):  
Nadezhda A. Vihareva ◽  
Daria E. Belavina
Keyword(s):  
Reference Point ◽  
Experimental Studies ◽  
Reference Points

A technique is proposed for the certification of liquid thermostats, based on the use of reference points reproduced in miniature ampoules. The results of experimental studies are presented on the example of reproducing the reference point of indium and gallium using miniature ampoules.

scholarly journals Technology of Minced Fish Canned Food from Thorny Skate, Enriched with Chondroitin Sulfate

2020 ◽  
Author(s):  
Sergey Raybulov ◽  
Yulia Shokina
Keyword(s):  
Chondroitin Sulfate ◽  
Barents Sea ◽  
Storage Temperature ◽  
Consumer Preferences ◽  
Raw Materials ◽  
Experimental Studies ◽  
Canned Food ◽  
Canned Fish ◽  
Murmansk Region ◽  
Minced Fish

The article presents the results of theoretical and experimental research on the development of technology of functional minced fish canned food. Study of consumer preferences and the market of canned fish in the Murmansk region allowed to determine the range of novelties such as canned fish (”Skate and cod in white sauce” and ”Meatballs made from skate and cod in tomato sauce”), enriched with chondroitin sulfate (CS). The use of thorny skate’s (a fish that lives in the North Atlantic and the Barents Sea) wings meat for canning purposes enriches the composition of canned food. The content of CS in one can of canned food with net weight of 250 g ranged from 550 to 700 mg. This guarantees the intake of human body from 78 to 100% of the daily rate of this powerful chondroprotector. To remove urea from the skate’s meat, the method of infrared blanching is proposed, which ensures the efficiency in removal of urea at over 70% of its initial content in fish. Infrared blanching allows not only saving raw materials from unpleasant smell, but also partially removing water from it (water losses are from 8 to 13%). Partial dehydration of raw materials allows avoiding formation of water sedimentation in ready-made canned goods after sterilization. With the help of the fuzzy logic method, the MatLab program determines the optimal formulations of canned food, which guarantee their best consumer properties. The Ellab device has been used to experimentally select sterilization modes, which guarantee industrial sterility of canned food, hence the actual sterilization effect is higher than the standard one. During the two years of research, experimental studies of organoleptic properties, microbiological and biochemical changes in canned food were carried out, which made it possible to establish the shelf life: one year at a storage temperature not exceeding 20ºC.

scholarly journals Marketing research in positioning and launching of yoghurt with a balanced chemical composition

2016 ◽  
Vol 10 (4) ◽  
Author(s):  
M. Mardar ◽  
N. Tkachenko ◽  
A. Lilishentseva ◽  
H. Burlaka
Keyword(s):  
Chemical Composition ◽  
Consumer Preferences ◽  
Marketing Research ◽  
New Product ◽  
Elevated Concentration ◽  
Probiotic Properties ◽  
Consumer Market ◽  
Marketing Environment ◽  
Major Nutrients ◽  
Swot Analyses

Annotation. This article presents the analysis of marketing environment of the enterprises that produce yogurt products in Ukraine. In order to carry out a deeper analysis of the marketing environment of the new yoghurt drinks with a balanced composition of the major nutrients in food and increased probiotic properties, PEST and SWOT-analyses were conducted, they identified environmental factors that have favorable and adverse effects as well as internal strengths and weaknesses of the new product. Based on the results of marketing research of consumer preferences, the core audience of new yoghurt drink with a balanced chemical composition and the elevated concentration of Bifidobacteria were defined. The received results led to justification of the expediency of elaboration of new yoghurt drinks with probiotic properties and balanced composition of basic food nutrients as well as to formulation of a strategy of new product promotion on the consumer market of Ukraine.

scholarly journals A Conjoint Analysis of Consumer Preferences for Chili Products: A Case Study on Chili Sauce

2020 ◽  
Vol 5 (4) ◽  
pp. 226-233
Author(s):  
Premruedee Jitkuekul ◽  
Sirinna Khamtanet
Keyword(s):  
Conjoint Analysis ◽  
New Product Development ◽  
Consumer Preferences ◽  
Sampling Technique ◽  
New Product ◽  
Good Health ◽  
Jel Classification ◽  
Stratified Sampling ◽  
Reasonable Price

Objective – This study aimed to investigate Thai customers’ preference to chili sauce using conjoint analysis (henceforth CA). Methodology/Technique – The participants of the study were residents of Sakon Nakhon, Nakhon Phanom and Mukdahan, Thailand. Data were collected with a stratified sampling technique and 420 usable questionnaires were considered. Findings –The participants of the study were residents of Sakon Nakhon, Nakhon Phanom and Mukdahan, Thailand. Data were collected with a stratified sampling technique and 420 usable questionnaires were considered. Conjoint Analysis indicates that consumers attach the most importance to a reasonable price, which is 45 baht. Since price is related to quality, good quality products must have a reasonable price. The flavor is the second priority. Consumers tend to prefer a hot & sweet flavor, yet too hot is not ideal, hot should be combined with a sweet flavor to make it smoother. In addition, consumers prefer a combination of herbal ingredients with organic chili, given the growing healthy trend in Thailand. Consumers then prefer an organic chili sauce with herbal ingredients that promotes good health. In terms of packaging, consumers prefer a squeezable product, rather than a bottle. Novelty - This paper will study the preferences of consumers with regards to the product; not much research on these topics has been undertaken. It could assist the company in knowing how to produce the product to respond to the customer’s demand. Type of Paper: Empirical. JEL Classification: M31, M39. Keywords: Chili sauce; Conjoint analysis; Consumer preferences; Customer satisfaction; New product development Reference to this paper should be made as follows: Jitkuekul, P; Khamtanet, S. (2020). A Conjoint Analysis of Consumer Preferences for Chili Products: A Case Study on Chili Sauce, J. Mgt. Mkt. Review, 5(4) 226 – 233. https://doi.org/10.35609/jmmr.2020.5.4(4)

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