scholarly journals Identifying customer priority for new products in target marketing: Using RFM model and TextRank

2021 ◽  
Vol 17 (2) ◽  
pp. 125-136
Author(s):  
Seongbeom Hwang ◽  
Yuna Lee
Keyword(s):  
Response Rate ◽  
New Products ◽  
New Product ◽  
Target Marketing ◽  
South Korean ◽  
Access Frequency ◽  
Rfm Model ◽  
Lift Curve ◽  
Product Launches ◽  
Access Data

Target marketing is a key strategy used to increase the revenue. Among many methods that identify prospective customers, the recency, frequency, monetary value (RFM) model is considered the most accurate. However, no RFM study has focused on prospects for new product launches. This study addresses this gap by using website access data to identify prospects for new products, thereby extending RFM models to include website-specific weights. An RF model, built using frequency and recency information from website access data of customers, and an RwF model, built by adding website weights to frequency of access, were developed. A TextRank algorithm was used to analyze weights for each website based on the access frequency, thus defining the weights in the RwF model. South Korean mobile users’ website access data between May 1 and July 31, 2020 were used to validate the models. Through a significant lift curve, the results indicate that the models are highly effective in prioritizing customers for target marketing of new products. In particular, the RwF model, reflecting website-specific weights, showed a customer response rate of more than 30% among the top 10% customers. The findings extend the RFM literature beyond purchase history and enable practitioners to find target customers without a purchase history.

ARE INNOVATIVE ORGANIZATIONAL CONCEPTS ENOUGH FOR FOSTERING INNOVATION?

2012 ◽  
Vol 16 (01) ◽  
pp. 1250005 ◽  
Author(s):  
JASNA PRESTER ◽  
MARLI GONAN BOZAC
Keyword(s):  
Positive Impact ◽  
New Products ◽  
New Product ◽  
Product Launch ◽  
Organizational Practices ◽  
Chi Square ◽  
Chi Square Test ◽  
Product Launches ◽  
The Difference ◽  
The Impact

The purpose of this article is to define which organizational practices have significant impact on returns from new products or which foster or at least influence positively innovation. Survey responders were divided to see whether they innovated or not by the survey questions which explicitly asked them if they have introduced new products in the last two years. With Chi Square test, we identified the difference in usage of certain organizational practices. After that, two multi-regression models showed the impact on launching a new product and their impact on generated returns from new products.There is a significant statistical difference in usage of these four practices between innovators and non-innovators: temporary cross-functional project teams, quality circle, ISO 9000, financial participation by employees. Regression analyses showed that for new product launch, quality circles and ISO900 have a positive impact. Since not all new product launches do not become successes when regressed to returns on new products, team performance incentives and knowledge-based systems have a significant positive impact. To our knowledge and through our literature research, we did not find works that explored the impacts of innovative organizational concepts on the final result — innovation. Most studies focused only on some organizational innovations and their impact on innovation. Here we present an overall overview of innovative organizational practices, why they are mostly used and identified those which mostly influence innovation.

The Role of Marketing in Developing Successful New Products in South Korea and Taiwan

1997 ◽  
Vol 5 (3) ◽  
pp. 47-69 ◽  
Author(s):  
X. Michael Song ◽  
Mitzi M. Montoya-Weiss ◽  
Jeffrey B. Schmidt
Keyword(s):  
South Korea ◽  
New Product Development ◽  
New Products ◽  
New Product ◽  
Product Development Process ◽  
South Korean ◽  
Technology Products ◽  
Marketing Resources ◽  
Marketing Activities ◽  
Using Data

Developing new products is an important activity for firms in the global, competitive marketplace. While marketing plays an important role in the process of developing new products, few studies have examined marketing's role in developing new products in East Asia. This research focuses on comparing marketing's contribution to the new product development process in South Korean and Taiwanese firms. South Korea and Taiwan have rapidly expanding economies that depend heavily on foreign exchange. In addition, these two countries have successfully transformed themselves from producing mainly low-value, labor-intensive goods to producing many high-value, high-technology products that require significant marketing savvy and proficiency. In this article, a model of the interrelationships among marketing resources, skills, activities, and new product performance is developed and tested using data on 372 recently developed South Korean new products and 306 recently developed Taiwanese new products. The results generally support the model, though some interesting differences were found between the two countries. It was found that merely possessing large quantities of marketing resources is not a key to new product success. Rather, the marketing skills derived from marketing resources and the proficiency in conducting marketing activities are important for successfully developing new products in South Korean and Taiwanese firms.

Attributes of product advantage and choices for manufacturer–retailer formal governance: the case of new product launch

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Songyue Zheng ◽  
Liping Qian ◽  
Pianpian Yang
Keyword(s):  
New Products ◽  
New Product ◽  
Product Launch ◽  
Governance Mechanism ◽  
Relational Governance ◽  
Informal Governance ◽  
Content Type ◽  
New Product Launch ◽  
Product Launches ◽  
New Perspective

PurposeThis study examined how the technological (tech) advantage and market advantage of new products influence the level of formal channel governance and, in turn, affect the success of new products in the presence of relational governance.Design/methodology/approachThe hypotheses are tested using the partial least squares approach to analyse survey data collected from 392 retailers of customer goods in China.FindingsThe results indicate that tech advantage and market advantage lead to an increase in retailers' transaction-specific investments (TSIs) and contract explicitness, respectively; the positive effect of market advantage on a retailer's TSIs will gradually decrease and will even become negative beyond a certain point. The relational governance mechanism can substitute for the effects of contract explicitness on improving new product success.Originality/valueThis research provides a new perspective for understanding new product advantage and exerts an initial effort to empirically distinguish between tech advantage and market advantage. It enriches the innovation literature by examining the governance of new product launches through retailers and explores the effects of formal and informal governance on channel cooperation performance in the new product launch stage.

New Folk Music as Attempted Repatriation in Romania

2018 ◽  
pp. 436-452
Author(s):  
Maurice Mengel
Keyword(s):  
Mass Media ◽  
Folk Music ◽  
Cultural Policy ◽  
New Products ◽  
New Product ◽  
The State ◽  
State Institutions ◽  
The Public ◽  
Socialist State ◽  
New Form

This chapter looks at cultural policy toward folk music (muzică populară) in socialist Romania (1948–1989), covering three areas: first, the state including its intentions and actions; second, ethnomusicologists as researchers of rural peasant music and employees of the state, and, third, the public as reached by state institutions. The article argues that Soviet-induced socialist cultural policy effectively constituted a repatriation of peasant music that was systematically collected; documented and researched; intentionally transformed into new products, such as folk orchestras, to facilitate the construction of communism; and then distributed in its new form through a network of state institutions like the mass media. Sources indicate that the socialist state was partially successful in convincing its citizens about the authenticity of the new product (that new folklore was real folklore) while the original peasant music was to a large extent inaccessible to nonspecialist audiences.

Entrepreneurial Bricolage and New Product Development Performance in New Ventures: The Contingent Effects of Founding Team Involvement

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Xinchun Wang ◽  
Xiaoyu Yu ◽  
Xiaotong Meng
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Resource Constraints ◽  
New Ventures ◽  
New Products ◽  
New Product ◽  
Strategic Decision ◽  
Entrepreneurial Bricolage ◽  
Founding Team ◽  
Npd Performance

Abstract New product development (NPD) performance is a key determinant of a new venture’s success. However, compared with established firms, new ventures often suffer from resource constraints when developing new products. Entrepreneurial bricolage is reported in the literature as an alternative strategic option that enables managers to overcome resource constraints when developing new products. However, because new ventures are often founded by an entrepreneurial team, the effectiveness and efficiency of using bricolage to improve NPD performance might be contingent on how the founding team plays its roles in this process. Using data from 323 new ventures in China, we find support for the critical role of entrepreneurial bricolage in improving NPD success under resource constraints. More importantly, our results reveal that the bricolage strategy is more likely to benefit a venture when the founding team is composed of members with diverse functional backgrounds and is not heavily involved in strategic decision-making.

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.

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.

Strategic delegation, quality competition, and new product profitability

2015 ◽  
Vol 53 (3) ◽  
pp. 713-729 ◽  
Author(s):  
Hyun Shin ◽  
Jongtae Shin ◽  
Shijin Yoo ◽  
Joon Song ◽  
Alex Kim
Keyword(s):  
New Products ◽  
New Product ◽  
Quality Competition ◽  
Strategic Delegation ◽  
Content Type ◽  
Financial Outcomes ◽  
Rival Firms ◽  
New Perspective ◽  
Duopolistic Market ◽  
Low Sensitivity

Purpose – The purpose of this paper is to present a new perspective on the marketing-R & D interface by modelling firms that develop new products in a duopolistic market. Design/methodology/approach – By using a game-theoretic modelling approach, this study examines strategic delegation, through which the marketing and R & D managers of each firm are given authority over pricing and new products’ quality levels. Findings – Interestingly, the study finds that the case where two managers with conflicting incentives negotiate (the horizontal coordination case) might produce a better financial outcome than when the managers’ decisions are perfectly coordinated by a profit-maximizing CEO (the vertical control case). In addition, the study identifies several conditions that guarantee horizontal coordination’s generation of higher profit, such as high (or low) sensitivity to the quality (or price) of a new product. The paper further shows that two competing firms may select horizontal coordination as a Nash equilibrium. Practical implications – These findings provide new insights into the role of marketing-R & D interaction under strategic delegation, which may allow rival firms to “spend smart” on R & D, avoid excessive (and unnecessary) quality competition, and thus enhance the profitability of new products. Such insights would be useful for any firms under budget constraints. Originality/value – To the authors’ knowledge, this paper represents the first attempt to analyze how delegation interacts with the conflicting incentives of marketing and R & D managers, which in turn affects the quality investment decisions, competitive intensity, and, ultimately, the financial outcomes of new products developed competing firms.

New Product Development in Malaysia: Does Organizational Background Really Matter?

2014 ◽  
Vol 68 (3) ◽  
Author(s):  
Tan Owee Kowang ◽  
Amran Rasli ◽  
Choi Sang Long
Keyword(s):  
Product Development ◽  
Research And Development ◽  
New Product Development ◽  
New Products ◽  
New Product ◽  
Multinational Companies ◽  
Product Performance ◽  
Survey Questionnaire ◽  
New Product Performance ◽  
Npd Performance

New Product Development (NPD) is vital in assisting Research and Development (R&D) based organizations to adapt to the changes in markets and technology for competitive advantage. Ensuring the success of new products and optimization of new product performance is critical and essential for Research and Development based organizations.  Hence, this study is carried out to explore does organizational background in term of company’s ownership (i.e. local or multinational companies) and operational scales (i.e. number of Research and Development staffs) affect NPD performance of Research and Development companies in Malaysia. In line with this, 8 New Product Development performance attributes were identified from literature review. These attributes were subsequently formulated into a survey questionnaire and responded by 186 respondents. Thereafter, the effect of organizational ownership and operational scale toward NPD performance are examined separately via Independent Sample t-test and Analysis of Variance (ANOVA). Finding from the study revealed that the level of NPD performance in multinational R&D companies is higher than local R&D companies. Findings from this research also implied that NPD performance can be further improved by increasing number of R&D staffs.  

Meta4acle: Generating Compelling Metaphors for Design

2008 ◽  
Author(s):  
Erik M. W. Kolb ◽  
Jonathan Hey ◽  
Hans-Ju¨rgen Sebastian ◽  
Alice M. Agogino
Keyword(s):  
Product Development ◽  
Case Studies ◽  
New Product Development ◽  
Team Member ◽  
New Products ◽  
New Product ◽  
Design Teams ◽  
Exploration Tool ◽  
Design Case ◽  
Positive Results

Metaphors have successfully been used by new product development and design teams to help frame the design situation and communicate new products to stakeholders. Yet, the process of finding a compelling metaphor often turns upon stumbling upon it or a flash of insight from a team member. We present Meta4acle: a Metaphor Exploration Tool for design that suggests possible metaphors to make the process more one of ‘seeking out’ than ‘stumbling upon’ an effective metaphor. The tool takes data about the project in the form of a title, domain and key associations required of the metaphor and returns suggestions from a database of possible metaphor sources. We built a Meta4acle prototype and evaluated it with positive results for three existing design case studies. We present plans for its full implementation and evaluation.

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