Improving New Product Quality: An Empirical Study of Product Development Teams in Taiwan

ABSTRACT

The role of team and organizational factors affecting new product quality and their interactions as moderating the effects are examined. Results from a domestic study suggest that new product quality is positively affected by information capability in the team and quality orientation in the firm; in contrast, it is negatively related to the innovativeness of the new product as seen by the firm and speed-to-market pressure in the team. However, teams' information capabilities alleviate the negative effect of innovativeness on quality. Quality orientation lessens the relationship between information capability and new product quality. Functional diversity and tenure diversity do not affect new product quality. In addition, managerial implications and directions for future research are proposed.     

A Study of Exhibitor Firms at an Arabian Gulf Trade Show

Abstract

The 11th Joint Exhibition of Gulf Cooperation Council (GCC) States provides a focus for a study of emerging market firms' behavior at a trade show. The exhibition industry continues to grow around the world. The purpose of the article is to expand the knowledge about exhibition behavior in different regions. Factor analysis is applied to investigate the underlying dimensions of the exhibition goals, the exhibition selection criteria and firms' perceived problems. Few differences were found between Gulf firms and firms previously studied in the USA, Canada and the UK. Implications for exhibitors, exhibition organizers, and researchers are presented.     

Consumer perceptions of monetary and non-monetary introductory promotions for new products

Abstract

Little research has examined how consumers respond to sales promotions in new product categories. This article fills this gap by integrating research on reference prices with literature on sales promotions for new product categories. Existing research suggests that consumers respond more favourably to non-monetary promotions (e.g. extra free promotions) than monetary promotions (e.g. price discounts) because non-monetary promotions are framed as segregated gains rather than reduced losses. However, both kinds of promotions are widely used in practice, suggesting the importance of other contributory factors. With a consumer experiment on a national panel of consumers, this research demonstrates that extra free product promotions are most preferred for existing products, and introductory low-price promotions are preferred for innovative products. The moderating effect of a product's innovativeness is explained via a new relationship in the marketing literature, whereby perceived risk mediates the relationship between perceived innovativeness and a consumer's tendency to stockpile.     

Marketing Innovativeness on Marketing Performance: Role of Religio-Centric Relational Marketing Strategy

Abstract

This paper is an empirical study aimed at investigating the effect of marketing innovativeness, market sensing capabilities and customer relationship management on marketing performance. The researchers tried to develop and solve the problem of the gap between marketing innovativeness and marketing performance. The respondents of this study were 318. Some of them are leaders or owners of SMEs Muslim fashion in Central Java, Indonesia. Data was analyzed by using Structural Equation Modeling (SEM). The results of the study show that marketing innovativeness (MI) has no significant effect on marketing performance (MP), while market sensing capabilities (MSC) and Customer Relationship Management Capabilities (CRMC) have a significant effect on marketing performance. Likewise, marketing innovativeness, market sensing capabilities, and CRM capabilities have a significant effect on the religio-centric relational marketing strategy. Furthermore, religio-centric relational marketing strategy (RRMS) is able to mediate the relationship between marketing innovativeness and marketing performance.     

Contingent effects of managerial guanxi on new product development success

A survey of new product development (NPD) managers finds both a linear, positive relationship between managerial guanxi and new product speed to market and an inverted U-shaped relationship between managerial guanxi and new product innovativeness. In addition, both transaction-specific investments (TSIs) and relationship commitment have a positive moderating impact on the relationship between managerial guanxi and new product speed to market. However, TSIs increase the damaging effect of managerial guanxi on new product innovativeness, whereas relationship commitment reduces such an effect. The results from this study can help business practitioners use guanxi to improve NPD performance under different contexts of inter-firm relationships.     

Because it is brand new! Recency heuristic for product innovativeness evaluation

This research identifies recency heuristic utilized by consumers with limited prior knowledge for product innovativeness evaluation. Consumers with limited prior knowledge of a product category perceived a new product as more innovative when its release date was more recent, while consumers with prior knowledge remained uninfluenced by recency information (Study 1). The effect was replicated at the product level (Study 2). It further demonstrates two critical boundary conditions—when recency was either irrelevant information or a rationally legitimate evaluative tool, recency heuristic was inapplicable (Study 3). The present research draws attention to the role of recency in conceptualizing product innovativeness and further elaborates the understanding of how the construct of innovativeness is represented in consumers' minds by focusing on the conceptual relationship of novelty and recency. It also contributes to the heuristic literature by proposing recency as an evaluative heuristic tool for innovativeness assessment. Results provide managers with practical insight into whether to highlight or downplay product release date information depending on their target audience and the level of product innovativeness.     

法治进步倒逼我国会展业发展转型——以展品的产品责任风险为例

我国会展业近30年的粗放发展已经与外部社会环境和法治进步形成了某种风险反差,而长期以来业内对风险的模糊意识和无所作为也不断侵蚀着行业发展的可持续性。例如,《侵权责任法》上产品责任是商业展会的一项集中风险,它蕴藏在各种展品之中。我国相关法律条文及判例已彰显展会组织者需为此担责的指向。其中,《消费者权益保护法》第43条更载明展会组织者为此承担"无过错责任"。1[1]这符合"消费者特别保护"的国际潮流、客观上也使展会组织者风险陡然高企。更为重要的是:这将倒逼我国会展业由外延发展向内涵发展的模式转型,是行业走向成熟的客观必然。     

Feedback effects of brand extensions on the brand image of global brands: a comparison between Spain and Norway

Abstract

Global brands often attempt to increase their sales through the launch of brand extensions. Such a strategy may, however, dilute existing brand beliefs at an international level, as two sets of data from Norway and Spain indicate. This paper illuminates how the attitude towards a brand extension affects the image of a parent brand. The extension attitude is mainly determined by the degree of perceived fit between the extension and the parent brand image. In the Spanish sample, it is also determined by the degree of familiarity with the parent brand and the perceived fit at the product category level. After analysing these relationships, the paper focuses on the moderating role of two dimensions of consumer innovativeness: hedonist innovativeness (tied to need for stimulation) and social innovativeness (tied to need for uniqueness). Finally, the cultural orientation of the origin country is analysed as a moderating factor.     

Using Trade Shows Throughout the Product Life Cycle

Abstract

Trade shows have long been recognized as an important marketing tool when introducing new products. This study examines the effectiveness of trade shows across the product life cycle (PLC). The results indicate that trade shows are an effective promotion tool for products in any stage of the product life cycle, but the nature and objectives of show use change over the life cycle.     

A cross-country study of consumer innovativeness and technological service innovation

The current literature suggests that the concept of consumer innovativeness is universally applicable. Innovators are believed to be novelty seekers and risk takers independent of their national identity, and therefore to be attracted to similar characteristics of an innovation across most countries. However, research in intercultural marketing has shown that cultural norms and values have varying influences on the adoption of innovation, a finding that seems to contradict the assumption that the relationship between consumer innovativeness and adoption of innovation is universally uniform. This research investigates the effects of consumer innovativeness on attitude toward a service-based innovation across three European countries. The results of a multi-group structural equation modeling show that the relationship between consumer innovativeness and attitude toward innovation varies across the three dimensions of perceived novelty, perceived value, and perceived risk.     

User entrepreneurs' multiple identities and crowdfunding performance: Effects through product innovativeness,perceived passion,and need similarity

This study examines the performance of user entrepreneurs in acquiring financial resources via crowdfunding. User entrepreneurs are thought to have better performance than non-user entrepreneurs, but the theoretical underpinnings of these differences are unclear. We propose a baseline hypothesis that claims of user entrepreneurship serve as a signal of capability and commitment to potential backers. In addition, building on three distinct identities of user entrepreneurs, we argue that user entrepreneurs' perceived passion, product innovativeness, and need similarity with potential backers mediate the relationship between user entrepreneurship and crowdfunding performance. Our results from a field study using a sample of crowdfunded ventures support these assertions. We validate these results and measures using both survey and experimental methods. This is one of the first studies to develop a multi-theoretical framework for user entrepreneurship, and the first to provide an underlying theoretical explanation for the superior crowdfunding performance of user entrepreneurs.     

Trade Fair or Sales Fair

Abstract

The central aims of this study were to investigate the objectives of participants at the Botswana International Trade Fair, effectiveness of management of the Fair and linkage effects of the Fair on its host city. Data were collected from a convenience sample of exhibitors and visitors, selected on a “mall intercept” basis, using a self-administered questionnaire under the supervision of trained assistants. The study found that the motives of the exhibitors and those of the visitors were highly complementary, as majority of both were motivated by business objectives. Despite the complementarity, the relative dominance of the business objectives was different. While practically all exhibitors were motivated by business objectives, a significant percentage (29) of visitors included social objectives in their motivation. Most of the participants, visitors as well as exhibitors, expressed satisfaction with the achievement of their objectives. They also rated the organisation and management of the fair favourably, except for cost or charges, catering facilities and car park facilities. The preponderance of retailing activities found at the fair gave it the image of a flea market rather than a true trade exhibition. A greater selectivity of exhibitors might help attract more quality visitors, with higher income and greater decision-making authority as well as more business-to-business transactions.     

Strategic recommendations for new product adoption in the Chinese market

ABSTRACT

This study extended current understandings of the relationships among domain specific innovativeness (DSI), the desire for unique consumer products (DUCPs), perceived new product characteristics (PNPCs), and Chinese consumers’ new product adoption behavior. It also investigated the indirect effect of vicarious learning behavior on Chinese consumers’ acceptance of new products. Data was collected in Shanghai, China. The results demonstrated that DSI and PNPCs were the primary drivers of new product adoption. The study also showed that PNPCs played a mediating role in the relationship between vicarious learning and the adoption of new products by Chinese consumers. The results confirmed the predictive power of DSI and how PNPCs affect Chinese innovative buying behavior. The results also suggest that PNPCs facilitate Chinese consumers’ new product learning behavior.     

Flag up! – Flagship products as important drivers of perceived brand innovativeness

Perceived brand innovativeness, the consumers' subjective assessment of a brand as innovative, often does not correspond to the level of innovation or the investment in research and development. Therefore, it is important for companies to know how objective product-level innovation and attributes can be transformed into perceived brand innovativeness. One pilot study and three main studies show that the perceived flagship product innovativeness is an important determinant of perceived brand innovativeness and that product-brand typicality moderates the spillover of the perceived flagship product innovativeness to the brand. The reported studies contribute to a better understanding of the role of flagship products for perceived brand innovativeness and indicate that marketing managers can use the presentation of a flagship product as a key element for increasing perceived brand innovativeness.     

The Effects of Cultural Distance,Free Trade Agreements,and Protectionism on Perceived Export Barriers

ABSTRACT

This article addresses the questions as to whether cultural distance and a free trade agreement with a trade bloc, as well as protectionism, have an impact on perceived external export barriers. The evaluation of a mail survey of chief executive officers from 459 Norwegian companies shows that protectionism has a strong significant effect on the level of perceived external export barriers. The cultural distance to the export markets has only a small effect, while the free trade agreement with the European Union has no effect.     

Sensory enabling technology acceptance model (SE‐TAM): A multiple‐group structural model comparison

Sensory enabling technology (SET) can deliver product information that is similar to the information obtained from direct product examination, thus reducing product risk. In addition, the interactivity and customer involvement created by sensory enabling technologies can enhance the entertainment value of the online shopping experience. The proposed model examined this dual role of sensory experience enablers in the online soft goods shopping process for three types of sensory enabling technologies that are widely applied in online retail sites. The results provided empirical support for perceived usefulness and perceived entertainment value as strong predictors of consumers' attitudes toward using all three of the sensory enabling technologies tested in this study. The impact of perceived ease of use differed by technology. Attitudes toward using sensory enabling technologies had a significant impact on the actual use of all three SETs; however, the impact of technology anxiety and innovativeness on the use of SET also appeared to differ by technology. Virtual try‐on played a strong hedonic role, increasing the entertainment value of the online shopping process, whereas 2D views (larger view and alternate views) showed a strong functional role. The 3D rotation view served both functional and hedonic roles. The results indicate that each sensory enabling technology makes a unique contribution to online shopping—either by reducing product risk perceptions or by increasing perceived entertainment value. © 2008 Wiley Periodicals, Inc.     

Trade Show Participation

Marketing managers are frequently faced with bud- geting and participation decisions regarding trade shows. This paper proposes and tests a framework for the analysis of organizational motivations for trade show exhibition. The results suggest that per- ceptions of the utility of trade shows differ depending upon one's osition in the organization, and the type of industry to which one belongs.     

The Power of Innovativeness in Manufacturer–Retailer Relationships

ABSTRACT

Purpose: Retailers often challenge manufacturers through aggressive store brand policies and severe listing constraints. This study investigates manufacturer innovativeness as a managerial lever to shift the power balance between manufacturers and retailers.

Methodology/approach: Using data from 277 senior managers of Swiss and German consumer goods manufacturers and analyzing these data with structural equation modelling, the authors test hypotheses about the impact of manufacturer innovativeness on manufacturer–retailer relationship characteristics (i.e., retailer dependency, store brand aggressiveness, and listing constraints).

Findings: The study demonstrates that manufacturer innovativeness enhances retailer dependency, which in turn positively affects overall manufacturer performance. This relationship can be explained further: By increasing retailer dependency, manufacturers suppress retailers’ store brand aggressiveness and attenuate retailers’ listing constraints. Store brand aggressiveness affects overall manufacturer performance through listing constraints.

Research implications: Identifying levers such as innovativeness that assist manufacturers in fostering their power over retailers provides a new mode for understanding how manufacturers can influence the balance of power between manufacturers and retailers. The study provides support for the approach/inhibition theory of power on the inter-organizational level. Organizations with increased power are assumed to have approach-related tendencies and act in goal-consistent manner, whereas organizations with reduced power are assumed to develop the tendency to pursue inhibition-related actions, e.g., attending to threats. Furthermore, this study identifies channel relationship characteristics such as retailer dependency as a mediating path between manufacturer innovativeness and performance.

Practical implications: Managers need to strengthen the firm’s innovative capacity to enhance the performance of their companies. By developing the capability to provide radical innovations, manufacturers are able to enhance their performance not only directly but also indirectly by strengthening the manufacturer’s position with regard to retailers. This study underscores the relevance of innovativeness for strengthening the manufacturer’s position in its relationship with retailers that avoids problems with aggressive store brands and constrained listing conditions.

Originality/value/contribution: This study proposes manufacturer innovativeness as a managerial lever to shift the power balance between manufacturers and retailers.     

The influence of sport sponsorship on brand equity and purchase behavior

Abstract

Drawing on Aaker’s brand equity model and Keller’s brand engagement concept and building on the sponsorship between a professional basketball club and a software company, this study examined how sport sponsorship affects brand equity and purchase behavior of the sponsor’s product. Data from 222 survey respondents were collected and analyzed using structural equation modeling techniques. The results provided evidence that perceived quality and brand engagement impact brand loyalty and purchase behavior of fans toward the sponsor’s product. Perceived fit between sponsor and sponsee and team identification were found to influence significantly sponsor’s brand equity constructs. The study extends Aaker’s model in the sport sponsorship context and highlights the influential role of perceived quality and brand engagement on driving sport team fans to form brand loyalty and purchase sponsor’s product.     

The Impact of Environmental Turbulence on the Perceived Importance of Innovation and Innovativeness in SMEs

This study investigates how market turbulence, technological turbulence, and competitive intensity affect the perceived importance of innovation and innovativeness, and thus SMEs’ business performance. Structural equation modeling is conducted on a sample of 373 SMEs. Our findings show that both market and technological turbulence increase the perceived importance of innovation, but only market turbulence impacts SMEs’ innovativeness directly. The perceived importance of innovation mediates environmental turbulence’s influence on a firm’s innovativeness. Competitive intensity has no significant effect on the perceived importance of innovation and innovativeness. Finally, innovativeness enhances business performance when using both perceptual and lagged objective performance data.