IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v22y2003i2p188-208.html
   My bibliography  Save this article

The International Takeoff of New Products: The Role of Economics, Culture, and Country Innovativeness

Author

Listed:
  • Gerard J. Tellis

    () (Marshall School of Business, The University of Southern California, P.O. Box 90089-1421, Los Angeles, California 90089-1421)

  • Stefan Stremersch

    () (Erasmus University Rotterdam, P.O. Box 1738, Burg. Oudlaan 50, 3000 DR Rotterdam, The Netherlands)

  • Eden Yin

    () (Judge Institute, Cambridge University, Trumpington Street, Cambridge CB2 1AG, UK)

Abstract

Sales takeoff is vitally important for the management of new products. Limited prior research on this phenomenon covers only the United States. This study addresses the following questions about takeoff in Europe: 1) Does takeoff occur as distinctly in other countries, as it does in the United States? 2) Do different categories and countries have consistently different times-to-takeoff? 3) What economic and cultural factors explain the intercountry differences? 4) Should managers use a sprinkler or waterfall strategy for the introduction of new products across countries? We gathered data on 137 new products across 10 categories and 16 European countries. We adapted the threshold rule for identifying takeoff (Golder and Tellis 1997) to this multinational context. We specify a parametric hazard model to answer the questions above. The major results are as follows: 1) Sales of most new products display a distinct takeoff in various European countries, at an average of six years after introduction. 2) The time-to-takeoff varies substantially across countries and categories. It is four times shorter for entertainment products than for kitchen and laundry appliances. It is almost half as long in Scandinavian countries as in Mediterranean countries. 3) While culture partially explains intercountry differences in time-to-takeoff, economic factors are neither strong nor robust explanatory factors. 4) These results suggest distinct advantages to a waterfall strategy for introducing products in international markets.

Suggested Citation

  • Gerard J. Tellis & Stefan Stremersch & Eden Yin, 2003. "The International Takeoff of New Products: The Role of Economics, Culture, and Country Innovativeness," Marketing Science, INFORMS, vol. 22(2), pages 188-208, October.
  • Handle: RePEc:inm:ormksc:v:22:y:2003:i:2:p:188-208
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.22.2.188.16041
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dipak C. Jain & Naufel J. Vilcassim, 1991. "Investigating Household Purchase Timing Decisions: A Conditional Hazard Function Approach," Marketing Science, INFORMS, vol. 10(1), pages 1-23.
    2. Trond Petersen, 1986. "Estimating Fully Parametric Hazard Rate Models with Time-Dependent Covariates," Sociological Methods & Research, , vol. 14(3), pages 219-246, February.
    3. Roger M. Heeler & Thomas P. Hustad, 1980. "Problems in Predicting New Product Growth for Consumer Durables," Management Science, INFORMS, vol. 26(10), pages 1007-1020, October.
    4. Peter N. Golder & Gerard J. Tellis, 1997. "Will It Every Fly? Modeling the Takeoff of Really New Consumer Durables," Marketing Science, INFORMS, vol. 16(3), pages 256-270.
    5. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
    6. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    7. Christophe Van den Bulte, 2000. "New Product Diffusion Acceleration: Measurement and Analysis," Marketing Science, INFORMS, vol. 19(4), pages 366-380, June.
    8. William P. Putsis, Jr. & Sridhar Balasubramanian & Edward W. Kaplan & Subrata K. Sen, 1997. "Mixing Behavior in Cross-Country Diffusion," Marketing Science, INFORMS, vol. 16(4), pages 354-369.
    9. Agarwal, Rajshree & Bayus, Barry L., 2002. "The Market Evolution and Sales Take-Off of Product Innovations," Working Papers 02-0104, University of Illinois at Urbana-Champaign, College of Business.
    10. Dickerson, Mary Dee & Gentry, James W, 1983. " Characteristics of Adopters and Non-Adopters of Home Computers," Journal of Consumer Research, Oxford University Press, vol. 10(2), pages 225-235, September.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:22:y:2003:i:2:p:188-208. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.