Understanding and Managing International Product Launch: A Comparison between Developed and Emerging Markets
With the developed market becoming increasingly saturated, companies have turned to the rapidly growing emerging market. To compete effectively in the global marketplace, firms need to develop global market competences, such as effective product launch. Although considerable efforts have been devote...
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| Published in: | The Journal of product innovation management Vol. 28; no. s1; pp. 104 - 120 |
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| Main Authors: | , , , |
| Format: | Journal Article |
| Language: | English |
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Hoboken
Blackwell Publishing Ltd
01.11.2011
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| ISSN: | 0737-6782, 1540-5885 |
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| Abstract | With the developed market becoming increasingly saturated, companies have turned to the rapidly growing emerging market. To compete effectively in the global marketplace, firms need to develop global market competences, such as effective product launch. Although considerable efforts have been devoted to identifying principles of effective new product launch, most of the literature focuses on a single country (i.e., the domestic market) and provides little direct cross‐national comparison. The objective of this study is to provide a better understanding of the patterns of effective product launch in the developed and emerging markets. Drawing from the contingency perceptive, the authors propose a conceptual model that emphasizes the central role of tactical launch decisions and the need to cope with the internal and external constraints for maximum new product performance. The research model is tested on 284 new products launched in the United States and 97 in Taiwan. Although prior literature suggested certain elements of global product launch may be standardized for purposes of efficiencies, the empirical data from this study suggests that global launch requires some degree of customization. The insights of the findings reveal that while some tactical launch decisions are effective for both emerging and mature markets, some are detrimental to each other. For example, customer education preannouncement and promotion discount pricing strategy enhance new product performance and preemption preannouncement strategy upset consumers for both the Taiwan and U.S. market. However, there are some cross‐national differences. Emotional advertising strategy is generally appreciated in the U.S. market but not in the Taiwan market. For management practice, the findings suggest the distinct patterns of effective product launch for the emerging and mature market using the United States and Taiwan as examples. |
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| AbstractList | With the developed market becoming increasingly saturated, companies have turned to the rapidly growing emerging market. To compete effectively in the global marketplace, firms need to develop global market competences, such as effective product launch. Although considerable efforts have been devoted to identifying principles of effective new product launch, most of the literature focuses on a single country (i.e., the domestic market) and provides little direct cross‐national comparison. The objective of this study is to provide a better understanding of the patterns of effective product launch in the developed and emerging markets. Drawing from the contingency perceptive, the authors propose a conceptual model that emphasizes the central role of tactical launch decisions and the need to cope with the internal and external constraints for maximum new product performance. The research model is tested on 284 new products launched in the United States and 97 in Taiwan. Although prior literature suggested certain elements of global product launch may be standardized for purposes of efficiencies, the empirical data from this study suggests that global launch requires some degree of customization. The insights of the findings reveal that while some tactical launch decisions are effective for both emerging and mature markets, some are detrimental to each other. For example, customer education preannouncement and promotion discount pricing strategy enhance new product performance and preemption preannouncement strategy upset consumers for both the Taiwan and U.S. market. However, there are some cross‐national differences. Emotional advertising strategy is generally appreciated in the U.S. market but not in the Taiwan market. For management practice, the findings suggest the distinct patterns of effective product launch for the emerging and mature market using the United States and Taiwan as examples. The objective of this study is to provide a better understanding of the patterns of effective product launch in the developed and emerging markets. Drawing from the contingency perceptive, the authors propose a conceptual model that emphasizes the central role of tactical launch decisions and the need to cope with the internal and external constraints for maximum new product performance. The research model is tested on 284 new products launched in the US and 97 in Taiwan. Although prior literature suggested certain elements of global product launch may be standardized for purposes of efficiencies, the empirical data from this study suggests that global launch requires some degree of customization. Emotional advertising strategy is generally appreciated in the US market but not in the Taiwan market. For management practice, the findings suggest the distinct patterns of effective product launch for the emerging and mature market using the US and Taiwan as examples. |
| Author | Lin, Bou-Wen Lee, Yikuan Wong, Yim-Yu Calantone, Roger J. |
| Author_xml | – sequence: 1 givenname: Yikuan surname: Lee fullname: Lee, Yikuan – sequence: 2 givenname: Bou-Wen surname: Lin fullname: Lin, Bou-Wen – sequence: 3 givenname: Yim-Yu surname: Wong fullname: Wong, Yim-Yu – sequence: 4 givenname: Roger J. surname: Calantone fullname: Calantone, Roger J. |
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| Copyright | 2011 Product Development & Management Association Copyright Blackwell Publishing Ltd. Nov 2011 |
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| References | Calantone, R. J., J. B. Schmidt, and X. M. Song. 1996. Controllable factors of new product success: A cross-national comparison. Marketing Science 15 (4): 341-358. Souder, W. E., and S. A. Jenssen. 1999. Management practices influencing new product success and failure in the United States and Scandinavia: A cross-cultural comparative study. Journal of Product Innovation Management 16 (2): 183-203. Porter, M. E. 1980. Competitive strategy. New York: Free Press. Di Benedetto, C. A. 1999. Identifying the key success factors in new product launch. Journal of Product Innovation Management 16 (6): 530-544. Hultink, E. J., and H. S. J. Robben. 1995. Measuring new product success: The difference that time perspective makes. Journal of Product Innovation Management 12 (5): 392-405. Hofer, C. W., and D. Schendel. 1978. Strategy formulation: Analytical concepts. Saint Paul, MN: West Publishing. Lilly, B., and H. S. Krishnan. 1996. Buyer responses to new product announcements: A conceptual framework. 1996 American Marketing Association Winter Educators' Conference, Chicago, IL. O'Donnell, S., and I. Jeong. 2000. Marketing standardization within global industries: An empirical study of performance implications. International Marketing Review 17 (1): 65, 72-76. Parsons, L. J. 1975. The product life cycle and time-varying advertising elasticities. Journal of Marketing Research 12 (4): 476-480. Pfeffer, J., and G. R. Salancik. 1978. The external control of organizations. New York: Harper and Row. Farrell, J., and G. Saloner. 1986. Installed base and compatibility: Innovation, product preannouncements, and prediction. The American Economic Review 76 (5): 940-955. Miller, R. R. 1998. Selling to newly emerging markets. Westport, CT: Quorum Books. Calantone, R. J., S. T. Cavusgil, J. B. Schmidt, and G.-C. Shim. 2004. Internationalization and the dynamics of product adaptation: An empirical investigation. Journal of Product Innovation Management 21 (2): 185-198. Jaworski, B. J., and A. L. Kohli. 1993. Market orientation: Antecedents and consequences. Journal of Marketing 57 (3): 53-71. Stremersch, S., and G. J. Tellis. 2004. Understanding and managing international growth of new products. International Journal of Research in Marketing 21 (4): 421-439. Rabino, S., and T. E. Moore. 1989. Managing new-product announcements in the computer industry. Industrial Marketing Management 18 (1): 35-44. Burgess, S. M., and J.-B. E. M. Steenkamp. 2006. Marketing renaissance: How research in emerging markets advances marketing science and practice. International Journal of Research in Marketing 23 (4): 337-356. Tellis, G. J., S. Stremersch, and E. Yin. 2003. The international takeoff of new products: The role of economics, culture, and country innovativeness. Marketing Science 22 (2): 188-208. Lee, Y., and S. T. Cavusgil. 2006. Enhancing alliance performance: The effects of contractual-based versus relational-based governance. Journal of Business Research 59 (8): 896-905. Langerak, F., E. J. Hultink, and H. S. J. Robben. 2004. The impact of market orientation, product advantage, and launch proficiency on new product performance and organizational performance. Journal of Product Innovation Management 24 (2): 79-94. Srivastava, R. K. 1987. Marketing technology intensive products to industrial firms. High Tech Marketing Research 1 (2): 11-21. Herstein, R., and E. D. Jaffe. 2007. Launching store brands in emerging markets: Resistance crumbles. Journal of Business Strategy 28 (5): 13-19. Venkatraman, N., and J. E. Prescott. 1990. Environment-strategy coalignment: An empirical test of its performance implications. Strategic Management Journal 11 (1): 1-23. Hultink, E. J., A. Griffin, S. Hart, and H. S. J. Robben. 1997. Industrial new product launch strategies and product development performance. Journal of Product Innovation Management 14 (4): 243-258. Song, X. M., and M. E. Parry. 1997. The determinants of Japanese new product successes. Journal of Marketing Research 34 (1): 64-76. Lee, Y., and G. O'Connor. 2003a. The impact of communication strategy on launching new products: The moderating role of product innovativeness. Journal of Product Innovation Management 20 (1): 4-21. Dean, J. 1976. Pricing policies for new products. Harvard Business Review 54 (6): 141-153. Mishra, S., D. Kim, and D. H. Lee. 1996. Factors affecting new product success: Cross-country comparisons. Journal of Product Innovation Management 13 (6): 530-550. Cavusgil, S. T., and S. Zou. 1994. Marketing strategy-performance relationship: An investigation of the empirical link in export market venture. Journal of Marketing 58 (1): 1-21. Coleman, C. 2007. Leveraging emerging markets for commercial success. Business Strategy 8 (2): 102-108. Lee, Y., and G. O'Connor. 2003b. New product launch strategy for network effects products. Journal of the Academy of Marketing Science 31 (3): 241-256. Bayus, B. L., S. Jain, and A.B. Rao. 2001. Truth or consequences: An analysis of vaporware and new product announcements. Journal of Marketing Research 39 (2): 3-13. Eliashberg, J., and T. S. Robertson. 1988. New product preannouncing behavior: A market signaling study. Journal of Marketing Research 25 (3): 282-292. Kleinschmidt, E. J., and R. G. Cooper. 1991. The impact of product innovativeness on performance. Journal of Product Innovation Management 8 (4): 240-251. Shankar, S., C. Ormiston, N. Bloch, R. Schaus, and V. Vishwanath. 2008. How to win in emerging markets. MIT Sloan Management Review 49 (3): 19-23. Sivakumar, K., and S. P. Raj. 1997. Quality tier competition: How price change influences brand choice and category choice. Journal of Marketing 61(3): 71-78. Lilly, B., and R. Walters. 1997. Toward a model of new product preannouncement timing. Journal of Product Innovation Management 14 (1): 4-20. Cacioppo, J. T., R. E. Petty, and K. J. Morris. 1983. Effects of need for cognition on message evaluation, recall, and persuasion. Journal of Personality and Social Psychology 45 (4): 805-818. Garrido-Rubio, A., and Y. Polo-Redondo. 2005. Tactical launch decision: Influence on innovation success/failure. Journal of Product and Brand Management 14 (1): 29-38. Hultink, E. J., and S. Hart. 1998. The world's path to the better mousetrap: Myth or reality? An empirical investigation into the launch strategies of high and low advantage new products. European Journal of Innovation Management 1 (3): 106-112. 2004; 21 1987; 1 1990; 11 1997; 61 1986; 76 1995; 12 2004; 24 2006; 59 1998 1975; 12 1996 1996; 13 1996; 15 1991; 8 1978 1976; 54 2007; 28 1993; 57 2000; 17 2006; 23 1988; 25 2003b; 31 1999; 16 1997; 14 2008; 49 1997; 34 2007; 8 1994; 58 2001; 39 1998; 1 1980 2003a; 20 2003; 22 1983; 45 2005; 14 1989; 18 |
| References_xml | – reference: Venkatraman, N., and J. E. Prescott. 1990. Environment-strategy coalignment: An empirical test of its performance implications. Strategic Management Journal 11 (1): 1-23. – reference: Burgess, S. M., and J.-B. E. M. Steenkamp. 2006. Marketing renaissance: How research in emerging markets advances marketing science and practice. International Journal of Research in Marketing 23 (4): 337-356. – reference: Coleman, C. 2007. Leveraging emerging markets for commercial success. Business Strategy 8 (2): 102-108. – reference: Souder, W. E., and S. A. Jenssen. 1999. Management practices influencing new product success and failure in the United States and Scandinavia: A cross-cultural comparative study. Journal of Product Innovation Management 16 (2): 183-203. – reference: Bayus, B. L., S. Jain, and A.B. Rao. 2001. Truth or consequences: An analysis of vaporware and new product announcements. Journal of Marketing Research 39 (2): 3-13. – reference: Hultink, E. J., and S. Hart. 1998. The world's path to the better mousetrap: Myth or reality? An empirical investigation into the launch strategies of high and low advantage new products. European Journal of Innovation Management 1 (3): 106-112. – reference: Shankar, S., C. Ormiston, N. Bloch, R. Schaus, and V. Vishwanath. 2008. How to win in emerging markets. MIT Sloan Management Review 49 (3): 19-23. – reference: Cavusgil, S. T., and S. Zou. 1994. Marketing strategy-performance relationship: An investigation of the empirical link in export market venture. Journal of Marketing 58 (1): 1-21. – reference: Dean, J. 1976. Pricing policies for new products. Harvard Business Review 54 (6): 141-153. – reference: Rabino, S., and T. E. Moore. 1989. Managing new-product announcements in the computer industry. Industrial Marketing Management 18 (1): 35-44. – reference: Langerak, F., E. J. Hultink, and H. S. J. Robben. 2004. The impact of market orientation, product advantage, and launch proficiency on new product performance and organizational performance. Journal of Product Innovation Management 24 (2): 79-94. – reference: Porter, M. E. 1980. Competitive strategy. New York: Free Press. – reference: Calantone, R. J., J. B. Schmidt, and X. M. Song. 1996. Controllable factors of new product success: A cross-national comparison. Marketing Science 15 (4): 341-358. – reference: Kleinschmidt, E. J., and R. G. Cooper. 1991. The impact of product innovativeness on performance. Journal of Product Innovation Management 8 (4): 240-251. – reference: Srivastava, R. K. 1987. Marketing technology intensive products to industrial firms. High Tech Marketing Research 1 (2): 11-21. – reference: Farrell, J., and G. Saloner. 1986. Installed base and compatibility: Innovation, product preannouncements, and prediction. The American Economic Review 76 (5): 940-955. – reference: Song, X. M., and M. E. Parry. 1997. The determinants of Japanese new product successes. Journal of Marketing Research 34 (1): 64-76. – reference: Tellis, G. J., S. Stremersch, and E. Yin. 2003. The international takeoff of new products: The role of economics, culture, and country innovativeness. Marketing Science 22 (2): 188-208. – reference: Di Benedetto, C. A. 1999. Identifying the key success factors in new product launch. Journal of Product Innovation Management 16 (6): 530-544. – reference: O'Donnell, S., and I. Jeong. 2000. Marketing standardization within global industries: An empirical study of performance implications. International Marketing Review 17 (1): 65, 72-76. – reference: Cacioppo, J. T., R. E. Petty, and K. J. Morris. 1983. Effects of need for cognition on message evaluation, recall, and persuasion. Journal of Personality and Social Psychology 45 (4): 805-818. – reference: Eliashberg, J., and T. S. Robertson. 1988. New product preannouncing behavior: A market signaling study. Journal of Marketing Research 25 (3): 282-292. – reference: Lee, Y., and G. O'Connor. 2003a. The impact of communication strategy on launching new products: The moderating role of product innovativeness. Journal of Product Innovation Management 20 (1): 4-21. – reference: Lee, Y., and G. O'Connor. 2003b. New product launch strategy for network effects products. Journal of the Academy of Marketing Science 31 (3): 241-256. – reference: Lilly, B., and H. S. Krishnan. 1996. Buyer responses to new product announcements: A conceptual framework. 1996 American Marketing Association Winter Educators' Conference, Chicago, IL. – reference: Mishra, S., D. Kim, and D. H. Lee. 1996. Factors affecting new product success: Cross-country comparisons. Journal of Product Innovation Management 13 (6): 530-550. – reference: Pfeffer, J., and G. R. Salancik. 1978. The external control of organizations. New York: Harper and Row. – reference: Garrido-Rubio, A., and Y. Polo-Redondo. 2005. Tactical launch decision: Influence on innovation success/failure. Journal of Product and Brand Management 14 (1): 29-38. – reference: Stremersch, S., and G. J. Tellis. 2004. Understanding and managing international growth of new products. International Journal of Research in Marketing 21 (4): 421-439. – reference: Lee, Y., and S. T. Cavusgil. 2006. Enhancing alliance performance: The effects of contractual-based versus relational-based governance. Journal of Business Research 59 (8): 896-905. – reference: Jaworski, B. J., and A. L. Kohli. 1993. Market orientation: Antecedents and consequences. Journal of Marketing 57 (3): 53-71. – reference: Hofer, C. W., and D. Schendel. 1978. Strategy formulation: Analytical concepts. Saint Paul, MN: West Publishing. – reference: Hultink, E. J., A. Griffin, S. Hart, and H. S. J. Robben. 1997. Industrial new product launch strategies and product development performance. Journal of Product Innovation Management 14 (4): 243-258. – reference: Herstein, R., and E. D. Jaffe. 2007. Launching store brands in emerging markets: Resistance crumbles. Journal of Business Strategy 28 (5): 13-19. – reference: Lilly, B., and R. Walters. 1997. Toward a model of new product preannouncement timing. Journal of Product Innovation Management 14 (1): 4-20. – reference: Miller, R. R. 1998. Selling to newly emerging markets. Westport, CT: Quorum Books. – reference: Sivakumar, K., and S. P. Raj. 1997. Quality tier competition: How price change influences brand choice and category choice. Journal of Marketing 61(3): 71-78. – reference: Hultink, E. J., and H. S. J. Robben. 1995. Measuring new product success: The difference that time perspective makes. Journal of Product Innovation Management 12 (5): 392-405. – reference: Parsons, L. J. 1975. The product life cycle and time-varying advertising elasticities. Journal of Marketing Research 12 (4): 476-480. – reference: Calantone, R. J., S. T. Cavusgil, J. B. Schmidt, and G.-C. Shim. 2004. Internationalization and the dynamics of product adaptation: An empirical investigation. Journal of Product Innovation Management 21 (2): 185-198. – volume: 59 start-page: 896 issue: 8 year: 2006 end-page: 905 article-title: Enhancing alliance performance: The effects of contractual‐based versus relational‐based governance publication-title: Journal of Business Research – volume: 15 start-page: 341 issue: 4 year: 1996 end-page: 358 article-title: Controllable factors of new product success: A cross‐national comparison publication-title: Marketing Science – volume: 61 start-page: 71 issue: 3 year: 1997 end-page: 78 article-title: Quality tier competition: How price change influences brand choice and category choice publication-title: Journal of Marketing – volume: 16 start-page: 530 issue: 6 year: 1999 end-page: 544 article-title: Identifying the key success factors in new product launch publication-title: Journal of Product Innovation Management – volume: 14 start-page: 29 issue: 1 year: 2005 end-page: 38 article-title: Tactical launch decision: Influence on innovation success/failure publication-title: Journal of Product and Brand Management – volume: 39 start-page: 3 issue: 2 year: 2001 end-page: 13 article-title: Truth or consequences: An analysis of vaporware and new product announcements publication-title: Journal of Marketing Research – volume: 34 start-page: 64 issue: 1 year: 1997 end-page: 76 article-title: The determinants of Japanese new product successes publication-title: Journal of Marketing Research – year: 1996 – volume: 20 start-page: 4 issue: 1 year: 2003a end-page: 21 article-title: The impact of communication strategy on launching new products: The moderating role of product innovativeness publication-title: Journal of Product Innovation Management – volume: 13 start-page: 530 issue: 6 year: 1996 end-page: 550 article-title: Factors affecting new product success: Cross‐country comparisons publication-title: Journal of Product Innovation Management – volume: 45 start-page: 805 issue: 4 year: 1983 end-page: 818 article-title: Effects of need for cognition on message evaluation, recall, and persuasion publication-title: Journal of Personality and Social Psychology – volume: 58 start-page: 1 issue: 1 year: 1994 end-page: 21 article-title: Marketing strategy‐performance relationship: An investigation of the empirical link in export market venture publication-title: Journal of Marketing – volume: 22 start-page: 188 issue: 2 year: 2003 end-page: 208 article-title: The international takeoff of new products: The role of economics, culture, and country innovativeness publication-title: Marketing Science – volume: 8 start-page: 240 issue: 4 year: 1991 end-page: 251 article-title: The impact of product innovativeness on performance publication-title: Journal of Product Innovation Management – year: 1998 – volume: 11 start-page: 1 issue: 1 year: 1990 end-page: 23 article-title: Environment‐strategy coalignment: An empirical test of its performance implications publication-title: Strategic Management Journal – volume: 12 start-page: 476 issue: 4 year: 1975 end-page: 480 article-title: The product life cycle and time‐varying advertising elasticities publication-title: Journal of Marketing Research – volume: 54 start-page: 141 issue: 6 year: 1976 end-page: 153 article-title: Pricing policies for new products publication-title: Harvard Business Review – volume: 12 start-page: 392 issue: 5 year: 1995 end-page: 405 article-title: Measuring new product success: The difference that time perspective makes publication-title: Journal of Product Innovation Management – volume: 21 start-page: 185 issue: 2 year: 2004 end-page: 198 article-title: Internationalization and the dynamics of product adaptation: An empirical investigation publication-title: Journal of Product Innovation Management – volume: 21 start-page: 421 issue: 4 year: 2004 end-page: 439 article-title: Understanding and managing international growth of new products publication-title: International Journal of Research in Marketing – volume: 57 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| Snippet | With the developed market becoming increasingly saturated, companies have turned to the rapidly growing emerging market. To compete effectively in the global... The objective of this study is to provide a better understanding of the patterns of effective product launch in the developed and emerging markets. Drawing... |
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| SubjectTerms | Advertising Decision making models Emerging markets International comparisons Management theory Product development Product introduction Studies |
| Title | Understanding and Managing International Product Launch: A Comparison between Developed and Emerging Markets |
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