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| Author: | Hultink, E. J. Langerak, F. |
| Title: | Launch decisions and competitive reactions: an exploratory market signaling study |
| Journal: | Journal of Product Innovation Management
2002 : MAY, VOL. 19:3, p. 199-212 |
| Index terms: | NEW PRODUCTS MARKET SURVEYS MARKETS COMPETITION COMPETITOR ANALYSIS |
| Language: | eng |
| Abstract: | When firms launch a new product into the marketplace they often aim to find a balance between building scale and provoking extensive and quick competitive reactions. The present study develops a framework that shows how strong and fast incumbents react to perceived market signals resulting from a new product's launch decisions (broad targeting, penetration pricing, advertising intensity and product advantage). The strength of the relationships between the launch decisions and the perceived market signals was expected to depend on one industry characteristic (i.e., market growth) and on one entrant characteristic (i.e., aggressive reputation). The authors distinguished three market signals in the authors' framework: hostility, commitment and consequences. |
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