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Article
Publication date: 29 January 2021

Farbod Fakhreddin, Pantea Foroudi and Mehdi Rasouli Ghahroudi

Based on the resource-based view and dynamic capabilities theory, this study aims to examine the complementarity between market orientations and launch proficiency as a…

Abstract

Purpose

Based on the resource-based view and dynamic capabilities theory, this study aims to examine the complementarity between market orientations and launch proficiency as a driver of new product performance.

Design/methodology/approach

In this research, an on-site survey of Iranian, research and development- intensive, manufacturing firms was carried out to examine the proposed hypotheses. Based on the 179 workable survey responses, a covariance-based structural equation modeling was applied to verify the proposed theoretical model.

Findings

The empirical findings reveal that the effects of market orientation or launch proficiency alone are not significant while the complementarity between them significantly influences new product performance. These research outcomes suggest that this complementarity leads to a bidirectional co-specialization relationship in firms, promoting both market intelligence generation processes and product-launch capabilities, and therefore resulting in superior new product performance.

Originality/value

The current characterization of the resource-based theory signifies that strategic resources merely have potential value and actualizing this value needs complementary organizational capabilities. Furthermore, the literature notably lacks empirical findings supporting these complementarities. Therefore, the findings concerning the bidirectional co-specialization between market orientation and launch proficiency not only provide empirical support for the dynamic capabilities theory but also address recent research calls to identify and calibrate the importance of dynamic capabilities for leveraging market orientation on new product performance.

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Article
Publication date: 7 December 2020

Jihoon Cho and Swinder Janda

Firms often use upward product line extensions to achieve gains in brand evaluations and in overall demand. Despite the prevalence of such extensions, previous research…

Abstract

Purpose

Firms often use upward product line extensions to achieve gains in brand evaluations and in overall demand. Despite the prevalence of such extensions, previous research has provided little guidance about how upward line extensions influence overall revenue when they are launched as a core product as opposed to a peripheral product. The purpose of this study is to fill this research gap.

Design/methodology/approach

Using data from the quick service restaurant industry, this study looks at the effects of upwardly extended core and peripheral products on product line revenue. The empirical study uses a quasi-experiment to compare customer purchases across the pre- and post-launch of upward line extensions.

Findings

The results of this study reveal that launching core and peripheral products as upward line extensions can each increase total product line revenue. In addition, findings illustrate that as compared to a core launch, this total product line revenue increase is substantially higher in the case of a peripheral launch.

Research limitations/implications

First, the estimated model does not include supply availability and competition. Second, the data span only six months and this restriction prohibits us from investigating alternative sources of the causal effect. Third, the empirical setting in this study is limited to financial data in the quick service restaurant industry as a proxy of actual behavior. Finally, given that customers are not randomly assigned to treatment and control groups, the author is unable to definitively rule out the effect of unobservable attributes.

Practical implications

The findings suggest that firms should prioritize peripheral upward line extensions but use both types considering resource constraints (cost and human resources) and strategic importance to the firm.

Originality/value

This study bolsters the extant literature related to upward product line extensions by providing an empirical framework that evaluates the causal effect of upward line extension on total revenue, using field data in a real-life setting (as opposed to survey or lab experiment data) and actual firm revenue (as opposed to a perceptual outcome measure such as behavioral intentions). In addition, findings contribute to the new product development literature.

Details

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

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Article
Publication date: 1 August 2005

Peter Trim and Hao Pan

The purpose of this paper is to make explicit how marketers employed in the pharmaceutical sector can ensure that the company is positioned in the industry as a result of…

Abstract

Purpose

The purpose of this paper is to make explicit how marketers employed in the pharmaceutical sector can ensure that the company is positioned in the industry as a result of a sustainable competitive advantage being achieved. Various factors are highlighted, including high research and development costs, stringent government regulations and cultural factors such as religion.

Design/methodology/approach

The new product launch strategy model outlined in this paper was developed from both secondary and primary sources. A literature review was undertaken, a number of in‐depth personal interviews and a focus group session were conducted, which involved managers within a pharmaceutical company. The research strategy encompassed the case study method and the NPLS model was validated and can be viewed as generalisable.

Findings

It is clear from the research undertaken that some marketing models are viewed as being too complex; however, it is generally appreciated that marketing models can be used to interpret complex relationships that are evident in a marketing system.

Research limitations/implications

Two weaknesses associated with the model were identified. First, the assumption that there was a one‐way relationship between the strategic launch decisions and the tactical launch decisions and, second, a feedback mechanism was absent that would provide users of the model with a means for evaluating their decisions and identifying alternative strategies and tactics. The model was amended and a feedback mechanism was introduced.

Practical implications

The NPLS model can be used by marketing practitioners to enhance communication between corporate level staff and subsidiary level staff, and can be used to implement and/or facilitate the strategic marketing concept within a pharmaceutical company. The model can also be used to focus attention on risk reduction/elimination associated with market entry.

Originality/value

The NPLS model is an addition to marketing knowledge and can assist marketing academics and researchers to understand better how marketing models can be constructed and implemented. The model can also be used by marketing practitioners employed by pharmaceutical companies to make tactical and strategic decisions; to evaluate a new product launch strategy; and to devise international marketing entry plans and strategies.

Details

European Business Review, vol. 17 no. 4
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 22 February 2008

Ann Ledwith and Michele O'Dwyer

The importance of new product development to the survival and success of firms is well supported in the literature; however, few studies have investigated new product

Abstract

Purpose

The importance of new product development to the survival and success of firms is well supported in the literature; however, few studies have investigated new product development in small to medium‐sized enterprises (SMEs). This study aims to examine the impact of product launch, product advantage and market orientation on new product development performance and organisational performance in SMEs.

Design/methodology/approach

This model was tested using data collected from 48 small and large sized firms in Ireland. Findings from 33 small and 15 large firms were compared, and a correlation analysis was used to establish the relationships defined in the model for both small and large firms.

Findings

The study identified several significant differences between the impact of product launch, product advantage and market orientation on new product development and organisational performance in small and large firms. It also indicated several areas in which small firms can improve their new product and organisational performance.

Research limitations/implications

This research builds on prior empirical research that has established a positive link between customer and competitor orientation and performance of small firms.

Practical/implications

The managerial implications suggest that managers need to place a greater emphasis on product launch proficiency, new product characteristics and market orientation.

Originality/value

The results show that a market orientation, as well as having a direct impact on organisational performance, also affects new product development activities.

Details

Journal of Small Business and Enterprise Development, vol. 15 no. 1
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 1 June 2015

Tun-Chih Kou and Bruce C. Y. Lee

The purpose of this study is to fill the gaps in previous literature and investigate the link between product launch performance and supply chain architecture and…

Abstract

Purpose

The purpose of this study is to fill the gaps in previous literature and investigate the link between product launch performance and supply chain architecture and performance. During the past 20 years, most of the new product literature has focused on new product development and product innovation. Only a few product launches have been discussed in specific fields.

Design/methodology/approach

From the perspective of the manufacturer, interfunctional coordination, supply chain architecture and supply chain performance affect lean launch performance. Lean launches can also add value to product and marketing performance. A questionnaire was used to gather data from project, account and purchasing managers in the high-tech industry and to test the postulated research model and hypotheses. The conceptual model was tested using 242 usable questionnaires.

Findings

The results provide evidence that interfunctional coordination is the basis for improving supply chain architecture. The supply chain has a strong, positive effect on lean launch performance. Lean launch is vital to the successful performance of a new product. Although lean launch execution and supply chain performance affect marketing performance and new product performance, the direct effect on marketing performance is non-significant.

Originality/value

This study presents the characteristics of the supply chain architecture specific to the high-tech industry. The authors empirically tested and propose a model to explain how high-tech manufacturers build a solid supply chain and leverage the capabilities of suppliers to improve lean launch execution and new product performance.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 1 December 2000

Susan Hart and Nikolaos Tzokas

This research examines whether the marketing mix decisions for new product launch change over the product‐market life cycle. Results raise questions about existing…

Abstract

This research examines whether the marketing mix decisions for new product launch change over the product‐market life cycle. Results raise questions about existing benchmark beliefs based on normative text‐book theories. In view of new insights we suggest a number of directions for the theoretical and empirical development of the new product launch field in the marketing management discipline.

Details

Benchmarking: An International Journal, vol. 7 no. 5
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 1 December 1998

Erik Jan Hultink and Susan Hart

Focuses on product advantage, a major contributing factor to new product performance, by examining the launch strategies associated with high and low levels of product

Abstract

Focuses on product advantage, a major contributing factor to new product performance, by examining the launch strategies associated with high and low levels of product advantage. Views a launch strategy as integrating protocol decisions, which have steered the course of a product’s development with the tactical marketing mix decisions. Data confirm all associations between key elements of new product protocol and product advantage. Growth‐related objectives guide the development of new products with high advantage, while the speedy development and early timing of the projects, the focus on growth markets, and the use of a niche targeting strategy are the hallmarks of products with high advantage. Contends that companies offering the world a better mousetrap do not believe the myth that a path to its door will be beaten; the better mousetrap requires and receives a different launch treatment from more pedestrian competitors.

Details

European Journal of Innovation Management, vol. 1 no. 3
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 6 June 2016

Minna Matikainen, Harri Terho, Petri Parvinen and Anne Juppo

This study examines the role and relative impact of market orientation, product orientation and relationship orientation on new product launch performance, investigating…

Abstract

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.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 5
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 January 2005

Ana Garrido‐Rubio and Yolanda Polo‐Redondo

Innovation launch strategies are usually critical for innovation success. The main objective of this work consists of analysing the influence of the tactical launch

Abstract

Purpose

Innovation launch strategies are usually critical for innovation success. The main objective of this work consists of analysing the influence of the tactical launch decisions on new product performance

Design/methodology/approach

Starts with a brief literature review. Then the results obtained in our study are compared with those obtained in other research. The data used in our research describes a new product launch in the Spanish agro‐food sector. The method for collecting the information was through a mailed questionnaire. Because most of response variables were categorical, and in order to verify the proposed hypotheses, cross tabulation was used. We used Pearson's chi‐squared (χ2), likelihood ratio (H2) and the adjusted residuals too.

Findings

The results propose a series of recommendations for the executives in charge of marketing new products. Specifically, suggests that it will be more likely to achieve success if, when launching a new product, skimming strategies are used, if intensive distribution is used for selling an innovation and the investment in the communication media is greater than that made by competitors. However, it is more possible to fail if the new product is marketed using an individual brand, penetration prices, push communication strategies and less expenditure on this concept than the competitors.

Research limitations/implications

The literature review suggests that some of these tactical decisions seem to be related with other launch decisions (strategic launch decisions). As a result of this, it will be interesting to perform these similar analyses for those as well as to analyse the possible links that may exist between both and their influence on the results. Future research could explore these relationships in other industrial sector or countries. Perhaps, it would be possible provide a common perspective.

Originality/value

In spite of the importance of the last phase of new product, there are few empirical works about it. This work tries to explain the transcendence of the tactical launch decisions and the influence of it on the success/failure of an innovation

Details

Journal of Product & Brand Management, vol. 14 no. 1
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 13 November 2019

Blandine Hetet, Claire-Lise Ackermann and Jean-Pierre Mathieu

This paper aims to examine whether perceived brand innovativeness has a positive effect on new product evaluations, which individual variables mediate and moderate this…

Abstract

Purpose

This paper aims to examine whether perceived brand innovativeness has a positive effect on new product evaluations, which individual variables mediate and moderate this effect and whether perceived brand innovativeness is reinforced by new product launch.

Design/methodology/approach

A total of 387 adults residing in France took part in a two-stage study. The two-stage research design aimed to investigate the effect of the introduction of a new product on brand perceptions. The innovation context used to test the hypotheses was the launch of a new electricity meter in the French market.

Findings

Brand innovativeness affects the way consumers evaluate new products launched by the brand. This effect is mediated by perceived newness and moderated by functional, hedonic and social consumer innovativeness. In addition, attitudes toward the brand improve as a result of the new product launch.

Research limitations/implications

Future research should test these hypotheses with other product categories and populations to provide external validity for the results and further investigate lack of support for some of the hypotheses.

Practical implications

The study’s findings highlight that the ability to develop and launch innovative products is not only know-how that is critical to innovation management but also a brand attribute stored in consumers’ minds that facilitates acceptance of the brand’s future new products.

Originality/value

This research addresses the underexplored question of how brand innovativeness and new product launch are interrelated. Extensive research has indeed shown the importance of customer-based brand equity and brand knowledge in evaluation and acceptance of new products. However, research on customer-based brand equity so far has paid limited attention to brand innovativeness. This research provides new findings on the relationship between brand innovativeness and new product evaluations.

Details

Journal of Product & Brand Management, vol. 29 no. 5
Type: Research Article
ISSN: 1061-0421

Keywords

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