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Article
Publication date: 20 July 2022

Hooman Estelami and Mohammad G. Nejad

The purpose of this research is to determine how managers’ decisions to discontinue products may be affected by their cognitive and demographic characteristics. Research in…

Abstract

Purpose

The purpose of this research is to determine how managers’ decisions to discontinue products may be affected by their cognitive and demographic characteristics. Research in product management and entrepreneurship has primarily focused on the introduction of innovations and the marketing of emerging and existing products in the marketplace. Considerably less research has focused on product elimination and how marketing managers decide to remove poorly performing products from a given product portfolio. Nevertheless, product elimination decisions are critical to maintaining business health and protecting firm profits, and are a commonly encountered decision for entrepreneurs and managers of existing products. This study empirically explores the role of factors that may affect a manager's decisiveness in eliminating poorly performing products from a product portfolio.

Design/methodology/approach

Using a simulated business environment, this study empirically explores the role of factors that may affect a manager’s decisiveness in eliminating poorly performing products from a product portfolio. Product portfolio decisions are presented to a sample of emerging managers using a computer simulation, and the impact of manager characteristics, namely, cognitive style, gender, academic profile and entrepreneurial intentions on product elimination decisiveness is examined using regression analysis.

Findings

The findings indicate dominant effects for cognitive style and academic profile in driving the decisiveness of product elimination decisions.

Research limitations/implications

The findings highlight the importance of the academic profile and cognitive style of those entrusted with managing product portfolios, especially as is related to product elimination decisions.

Practical implications

The findings imply a need for determining the optimal fit of candidates for product portfolio management roles, based on factors such as cognitive style, academic performance and academic area of specialization.

Social implications

Given the role of entrepreneurial enterprises in enabling social equity, this research highlights the need for entrepreneurial education focusing not only on product introduction but also product omission.

Originality/value

This research expands prior research findings on innovation, promotion and elimination of products by asking what happens at the end of a product’s life when the prospects for a product are no longer strong. The research shows that some managers are less decisive and therefore may be challenged when handling product portfolios with sub-performing products. The findings indicate cognitive and academic influences on product elimination indecisiveness and open new avenues for further examining similar influences in managerial decision-making. This line of work therefore encourages inquiry into the drivers of the important decision of product elimination.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 24 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

Article
Publication date: 1 March 2004

David R. Harness and Norman E. Marr

This paper examines product elimination in the UK's financial services sector. Specifically it considers how success is defined and measured. The literature explains that in…

1299

Abstract

This paper examines product elimination in the UK's financial services sector. Specifically it considers how success is defined and measured. The literature explains that in financial services the ability to fully eliminate a product is difficult due to contractual and legislative barriers. This has resulted in the use of two forms of elimination – partial and full. An empirical study of retail banks, building societies and insurance organisations was undertaken. It was identified that success is defined by the specific objectives used in implementing either of these strategies. The study identified that success was measured by the extent to which product removal was achieved in line with the set objectives of elimination, and how removal resulted in performance gains for other business activities.

Details

International Journal of Bank Marketing, vol. 22 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 February 1997

David R. Harness and Stephen Mackay

Discusses the options available to financial service companies to accomplish product removal or elimination. Reports the findings of a two year study into the practices and…

1196

Abstract

Discusses the options available to financial service companies to accomplish product removal or elimination. Reports the findings of a two year study into the practices and processes of financial service sector product elimination activity. Outlines why product elimination is relevant to product management and indicates the extent to which previously reported elimination theory can embrace service sector‐specific elimination issues. Presents the withdrawal options for the financial services sector and discusses their usage. Finally, gives the implications that these strategies have for current product management theory.

Details

International Journal of Bank Marketing, vol. 15 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 May 2004

David R. Harness

This paper examines product elimination in the UK's financial services industry. The literature review establishes that physical goods elimination theory has only limited…

1941

Abstract

This paper examines product elimination in the UK's financial services industry. The literature review establishes that physical goods elimination theory has only limited application to the financial services sector. A three‐stage methodology is employed to find out how products are eliminated in retail banks, building societies and insurance organisations. A model is formulated that provides an overview of the different stages involved in eliminating a product and how each stage is brought together within a process. It is identified that each stage of elimination is influenced by the extent to which full elimination (terminating production and support liability) can be achieved. This is dependent upon the existence of external barriers – legislative controls, contractual obligations, and internal constraints created by the organisation's desire to maintain customer relationships post‐elimination. By outlining the elimination process and key influences the ability to plan product termination to achieve wider objectives, such as customer retention, should become easier.

Details

International Journal of Bank Marketing, vol. 22 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 January 1982

George J. Avlonitis and Bert G.S. James

Questions the tendency to associate the product‐elimination decision only with ‘weak’ products, in addition to the desirability/relevance of comprehensive and systematic product…

Abstract

Questions the tendency to associate the product‐elimination decision only with ‘weak’ products, in addition to the desirability/relevance of comprehensive and systematic product elimination procedures and the necessity for formal product elimination programmes. Points out, however, that herein the objective is not to pour a critical scorn on basically useful guidelines and valuable work, nor is it to propose a new theory. Focuses on rational, formal, ethical and dynamic aspects of the product elimination process and bases the study on three stages: a pilot study; an interview survey which involved 20 in‐depth company interviews, ranging from two days to one week duration each; and a mail survey, which resulted in 94 completed mail questionnaires — which constitutes a 31 per cent response rate. Sums up by indicating that the recorded experiences have indicated that there is a need for much deeper analysis into produce elimination theory and company practices.

Details

European Journal of Marketing, vol. 16 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 November 2004

Paraskevas C. Argouslidis and Fiona McLean

Despite the importance of the ability of service firms to rationalise their service ranges in today's competitive environment, the area of service elimination decision‐making is…

1561

Abstract

Despite the importance of the ability of service firms to rationalise their service ranges in today's competitive environment, the area of service elimination decision‐making is one of the least researched in the literature on services marketing. Responding to this knowledge gap, this paper reports part of the findings of a broader exploratory investigation into the service elimination process in the British financial services sector. In detail, the paper presents qualitative and quantitative empirical evidence on the way in which British financial institutions audit their service range in order to identify financial services as candidates for elimination. The evidence showed that the British financial institutions studied follow a periodically conducted service range auditing process, which is often documented and computer‐aided. The audit is operationalised by a set of financial and non‐financial audit criteria (performance dimensions). The evidence also showed that the service range auditing process is not static but dynamic. As such, the relative importance of the audit criteria used varies in relation to service‐specific, organisational and environmental variables, such as type of financial service, business strategy pursued overall, degree of market orientation, intensity of competition, intensity of legislation and rhythm of technological change.

Details

European Journal of Marketing, vol. 38 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 January 1998

Mark Andrew Mitchell, Ronald D. Taylor and Faruk Tanyel

An empirical examination of the product elimination decision‐making processes in American and British manufacturing firms was presented. Specifically, two areas of the product…

Abstract

An empirical examination of the product elimination decision‐making processes in American and British manufacturing firms was presented. Specifically, two areas of the product elimination decision‐making process are presented: (1) the precipitating circumstances which “triggered” the product elimination decision‐making process to begin; and (2) the variables used to make the elimination/retention are reviewed. It was concluded that the decision making processes were similiar in the two countries.

Details

International Journal of Commerce and Management, vol. 8 no. 1
Type: Research Article
ISSN: 1056-9219

Article
Publication date: 1 December 2001

David R. Harness and Norman E. Marr

As the UK’s retail financial services sector discovers the value of retaining customers it is also becoming aware that product elimination has the potential to damage existing…

1017

Abstract

As the UK’s retail financial services sector discovers the value of retaining customers it is also becoming aware that product elimination has the potential to damage existing purchasing relationships. Unlike physical goods, where elimination is often undertaken with scant regard for the customer, in financial services the customer is central to the elimination action. The nature of the product and the existence of operational constraints have created two levels of elimination. The first, partial elimination, removes the product from some but not all customers, and requires the organisation to provide on‐going support. Full elimination occurs only when all customers cease to own the product and production is terminated. These two levels of elimination are comprised of different processes that impact on customers in different ways. The way they impact will determine whether wider organisational objectives such as customer retention as an outcome of a product elimination action can be achieved.

Details

Journal of Product & Brand Management, vol. 10 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 23 May 2008

Paraskevas C. Argouslidis

Drawing upon theory on organizational decision speed, this study aims to take a first step toward an understanding of the temporal aspect of the elimination decision‐making…

1257

Abstract

Purpose

Drawing upon theory on organizational decision speed, this study aims to take a first step toward an understanding of the temporal aspect of the elimination decision‐making process in financial services (i.e. the process of withdrawing an item from the product line) and in particular of the organizational, product‐specific and environmental determinants of the speed of the elimination decision‐reaching and the elimination implementation processes.

Design/methodology/approach

Data were collected through a mail survey to a stratified random sample of 500 UK financial institutions, yielding 167 returns.

Findings

The paper finds first, the speed of elimination decision‐reaching is shaped by product line length, market orientation, formalization, technological change, and the austerity of the regulatory context. Second, the speed of the elimination implementation process is influenced by whether the item that is considered for elimination is a typical bank, insurance, or mortgage product, by its delivery method, and by whether it is for the retail or the corporate market.

Practical implications

By responding to an array of issues highlighted as important research directions by previous studies on organizational decision‐speed, this study has useful theoretical implications. The findings also provide practitioners with a first picture of how the pace of their line rationalization plans may be impeded or accelerated by a set of contextual factors.

Originality/value

The study represents the first attempt to examine the service elimination process (i.e. a marketing decision area) in relation to decision speed (i.e. a central aspect of organizational decision making). As such, it makes a clear inter‐disciplinary contribution.

Details

Journal of Services Marketing, vol. 22 no. 3
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 1 February 1994

Gordon E. Greenley and Barry L. Bayus

Investigates approaches to product launch and elimination decisions insamples of UK and US companies, which is a gap which was identified inthe literature. Identifies different…

1496

Abstract

Investigates approaches to product launch and elimination decisions in samples of UK and US companies, which is a gap which was identified in the literature. Identifies different approaches to tackling each of the decisions, and different approaches within each sample. There are also differences between the countries. These results provide new insights, as well as support for some previous empirical results. Discusses directions for further research.

Details

European Journal of Marketing, vol. 28 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

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