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Pricing in the international takeoff of new products

Author

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  • Chandrasekaran, Deepa
  • Arts, Joep W.C.
  • Tellis, Gerard J.
  • Frambach, Ruud T.

Abstract

This study focuses on the effect of two dimensions of price (relative price and price volatility) on the international takeoff of new products. The study examines these drivers of takeoff using a novel data set of bimonthly observations of 7 new consumer electronic products in 8 countries. The empirical analysis reveals that both relative price and price volatility significantly impact the hazard of takeoff. However, although the effect of relative price is stable across contexts, the effects of price volatility are moderated by wealth, culture, and contagion. The use of temporally disaggregate data at the bimonthly level allows for the identification of the effect of price volatility and enables a more precise identification of takeoff than that achievable with annual data.

Suggested Citation

  • Chandrasekaran, Deepa & Arts, Joep W.C. & Tellis, Gerard J. & Frambach, Ruud T., 2013. "Pricing in the international takeoff of new products," International Journal of Research in Marketing, Elsevier, vol. 30(3), pages 249-264.
    • Handle: RePEc:eee:ijrema:v:30:y:2013:i:3:p:249-264
    DOI: 10.1016/j.ijresmar.2012.09.008
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    3. Daniel Kaimann & Joe Cox, 2014. "The Interaction of Signals: A Fuzzy set Analysis of the Video Game Industry," Working Papers Dissertations 13, Paderborn University, Faculty of Business Administration and Economics.
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