Creating market anticipation: An exploratory examination of the effect of preannouncement behavior on a new product’s launch

Preannouncements are strategic marketing communications directed at market participants including investors, suppliers, distributors, and buyers. Most empirical literature focuses on antecedents influencing a firm’s preannouncement behavior and on outcomes related to deleterious responses by competitors. This study differs and follows the large body of extant research that examines preannouncing behavior as a deliberate marketing communication process aimed at influencing market participants in the firm’s favor. The authors develop and test a model of preannouncement behavior that affects the success of a new product launch through market anticipation, competitive equity, and new product development resources. The findings indicate that preannouncement behavior engenders new product success through its positive effect on market anticipation—a favorable industry-wide bias in advance of new product introduction—and emphasizes the use of preannouncements as business-to-business marketing communications aimed at influencing current and prospective supply chain partners in the firm’s favor. Kim Schatzel (schatzel@umd.umich.edu) (PhD, Michigan State University) is an assistant professor of marketing at the University of Michigan, Dearborn. Her business experience includes more than 20 years of corporate and new venture work including tenure as the founder and CEO of a multinational $250 million automotive components firm and three start-up technology-based companies. She is interested in the study of new product development, business-to-business marketing communications, and firm reputation issues. She has published articles in theJournal of Marketing, theJournal of Business Research, and theJournal of Product Innovation Management. She is also highly committed to teaching excellence and has won several awards for undergraduate, graduate, and executive teaching. Roger Calantone (rogercal@msu.edu) holds the Eli Broad University Chair in Business at Michigan State University and is also the director of the Broad Information Technology Management Program (ITMP). He is interested in the study of new product innovation and technology decisions in industrial firms. Currently, his research is focused on new product decisions, industrial market segmentation, global logistics, and the use of neural network and autonomous learning models to valuate product components. He is the author of more than 200 refereed academic articles and proceedings and is coauthor of several books. His publications have appeared in journals such as theJournal of Marketing, the Journal of Marketing Research, Marketing Science, Management Science, Decision Sciences, and theStrategic Management Journal.     

Theoretical tests of the rational expectations hypothesis in economic dynamical models

This paper examines different theoretical stability tests of infinite-horizon rational expectations equilibria. These ‘tests’ have different status: two of them express that the considered equilibrium is ‘isolated’ [neither (non-sunspot) equilibria (test 1) nor (well-behaved) sunspot equilibria exist in a neighbourhood (test 2)] and two of them are learning criteria [either standard ‘evolutive learning’ (test 3) or game-theoretical ‘eductive’ learning (test 4)]. Surprisingly, these four tests select the same steady state equilibria in the class of one-dimensional one-step-forward looking economic models. The extension of this equivalence theorem to n-dimensional and then more complex systems is discussed.     

An Analysis of REIT CEO Stock-Based Compensation

Academic research findings on the determinants of executive compensation are mixed. Some researchers attribute this to the inclusion of stock-based compensation in the more recent studies. We study the determinants of stock-based compensation schemes in the REIT industry for the period 1997–2000. While previous research analyzes REIT CEOs' cash-based compensation, we concentrate on option compensation structures. Using the Tobit method, we study both the level of option awards and the mix of option awards to total compensation. We find that REIT CEOs receive larger option awards when they increase growth opportunities, funds from operation, earnings per share and when there is greater variability of returns. Thus, our results validate most of the theories on stock-based compensation.     

Entry strategies for ‘planned giving’ donor products adopted by British charities: An empirical investigation

In April 2000 the British Government legislated to provide UK citizens with a wide range of tax concessions on charitable donations, enabling registered UK charities to develop and launch new donor products similar in form to the ‘planned giving’ instruments that for many years have been available to supporters of US nonprofit organisations. This paper presents the outcomes to a study of the progress so far achieved by a sample of 89 British charities in their attempts to introduce planned giving products. The investigation explored the roles of certain market and other situational factors in motivating charities to establish planned giving instruments, the antecedents and consequences of heavy investment in the marketing of these new donor products, the main marketing methods employed; and the respondents' perceptions of the major problems involved and barriers to successful introduction.     

Serial Nonparticipation in Repeated Discrete Choice Models

We consider alternative econometric strategies for addressing serial nonparticipation, that is, repeated choice of the same alternative or same type of alternative across a series of choice occasions, in data typically analyzed within the repeated discrete choice framework. Single and double hurdle variants of the repeated discrete choice model are developed and applied to choice experiment and multisite seasonal recreation demand data. Our results suggest that hurdle models can generate significant improvements in statistical fit and qualitatively different policy implications, particularly in choice experiment applications where the proper treatment of serial nonparticipation is relatively more ambiguous.     

The innovation catalysts

A few years ago the software development company Intuit realized that it needed a new approach to galvanizing customers. The company's Net Promoter Score was faltering, and customer recommendations of new products were especially disappointing. Intuit decided to hold a two-day, off-site meeting for the company's top 300 managers with a focus on the role of design in innovation. One of the days was dedicated to a program called Design for Delight. The centerpiece of the day was a PowerPoint presentation by Intuit founder Scott Cook, who realized midway through that he was no Steve Jobs: The managers listened dutifully, but there was little energy in the room. By contrast, a subsequent exercise in which the participants worked through a design challenge by creating prototypes, getting feedback, iterating, and refining, had them mesmerized. The eventual result was the creation of a team of nine design-thinking coaches--"innovation catalysts"--from across Intuit who were made available to help any work group create prototypes, run experiments, and learn from customers. The process includes a "painstorm" (to determine the customer's greatest pain point), a "soljam" (to generate and then winnow possible solutions), and a "code-jam" (to write code "good enough" to take to customers within two weeks). Design for Delight has enabled employees throughout Intuit to move from satisfying customers to delighting them.     

A performance analysis of participating life insurance contracts

Traditional life insurance products, in particular participating life insurance contracts, are often criticized. Their performance is often said to be poor compared to other investment alternatives. Interestingly, this perception appears to persist although very little research has been conducted into the performance of participating life insurance contracts. But are participating life insurance contracts actually bad for policyholders? We conduct a performance analysis based on contracts offered in the German market, in order to provide evidence to support decision making by policyholders.