IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v27y2008i5p844-860.html
   My bibliography  Save this article

Global Takeoff of New Products: Culture, Wealth, or Vanishing Differences?

Author

Listed:
  • Deepa Chandrasekaran

    (Lehigh University, Bethlehem, Pennsylvania 18015)

  • Gerard J. Tellis

    (Marshall School of Business, University of Southern California, Los Angeles, California 90089)

Abstract

The authors study the takeoff of 16 new products across 31 countries (430 categories) to analyze how and why takeoff varies across products and countries. They test the effect of 12 hypothesized drivers of takeoff using a parametric hazard model. The authors find that the average time to takeoff varies substantially between developed and developing countries, between work and fun products, across cultural clusters, and over calendar time. Products take off fastest in Japan and Norway, followed by other Nordic countries, the United States, and some countries of Midwestern Europe. Takeoff is driven by culture and wealth plus product class, product vintage, and prior takeoff. Most importantly, time to takeoff is shortening over time and takeoff is converging across countries. The authors discuss the implications of these findings.

Suggested Citation

  • Deepa Chandrasekaran & Gerard J. Tellis, 2008. "Global Takeoff of New Products: Culture, Wealth, or Vanishing Differences?," Marketing Science, INFORMS, vol. 27(5), pages 844-860, 09-10.
    • Handle: RePEc:inm:ormksc:v:27:y:2008:i:5:p:844-860
    DOI: 10.1287/mksc.1070.0329
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.1070.0329
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.1070.0329?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June.
    2. Jesuino, Jorge Correia, 2002. "Latin europe cluster: from South to North," Journal of World Business, Elsevier, vol. 37(1), pages 81-89, April.
    3. Romain Wacziarg & Karen Horn Welch, 2008. "Trade Liberalization and Growth: New Evidence," The World Bank Economic Review, World Bank, vol. 22(2), pages 187-231, June.
    4. Dan Horsky & Leonard S. Simon, 1983. "Advertising and the Diffusion of New Products," Marketing Science, INFORMS, vol. 2(1), pages 1-17.
    5. Peter N. Golder & Gerard J. Tellis, 2004. "Growing, Growing, Gone: Cascades, Diffusion, and Turning Points in the Product Life Cycle," Marketing Science, INFORMS, vol. 23(2), pages 207-218, December.
    6. Szabo, Erna & Brodbeck, Felix C. & Den Hartog, Deanne N. & Reber, Gerhard & Weibler, Jürgen & Wunderer, Rolf, 2002. "The Germanic Europe cluster: where employees have a voice," Journal of World Business, Elsevier, vol. 37(1), pages 55-68, April.
    7. Gatignon, Hubert & Robertson, Thomas S, 1985. "A Propositional Inventory for New Diffusion Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(4), pages 849-867, March.
    8. 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.
    9. 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.
    10. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
    11. John Hauser & Gerard J. Tellis & Abbie Griffin, 2006. "Research on Innovation: A Review and Agenda for," Marketing Science, INFORMS, vol. 25(6), pages 687-717, 11-12.
    12. Sunil Gupta & Valarie Zeithaml, 2006. "Customer Metrics and Their Impact on Financial Performance," Marketing Science, INFORMS, vol. 25(6), pages 718-739, 11-12.
    13. Dan Horsky, 1990. "A Diffusion Model Incorporating Product Benefits, Price, Income and Information," Marketing Science, INFORMS, vol. 9(4), pages 342-365.
    14. Ashkanasy, Neal M. & Trevor-Roberts, Edwin & Earnshaw, Louise, 2002. "The Anglo Cluster: legacy of the British empire," Journal of World Business, Elsevier, vol. 37(1), pages 28-39, April.
    15. Hubert Gatignon & Jehoshua Eliashberg & Thomas S. Robertson, 1989. "Modeling Multinational Diffusion Patterns: An Efficient Methodology," Marketing Science, INFORMS, vol. 8(3), pages 231-247.
    16. 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.
    17. Sue Bowden & Avner Offer, 1994. "Household appliances and the use of time: the United States and Britain since the 1920s," Economic History Review, Economic History Society, vol. 47(4), pages 725-748, November.
    18. Kabasakal, Hayat & Bodur, Muzaffer, 2002. "Arabic cluster: a bridge between East and West," Journal of World Business, Elsevier, vol. 37(1), pages 40-54, April.
    19. Christophe Van den Bulte & Stefan Stremersch, 2004. "Social Contagion and Income Heterogeneity in New Product Diffusion: A Meta-Analytic Test," Marketing Science, INFORMS, vol. 23(4), pages 530-544, July.
    20. Vijay Mahajan & Eitan Muller & Frank M. Bass, 1995. "Diffusion of New Products: Empirical Generalizations and Managerial Uses," Marketing Science, INFORMS, vol. 14(3_supplem), pages 79-88.
    21. Austrian Institute of Economic Research, 2006. "Competitiveness Report 2006," WIFO Studies, WIFO, number 28814, April.
    22. Rajshree Agarwal & Barry L. Bayus, 2002. "The Market Evolution and Sales Takeoff of Product Innovations," Management Science, INFORMS, vol. 48(8), pages 1024-1041, August.
    23. van den Bulte, C. & Stremersch, S., 2003. "Contagion and heterogeneity in new product diffusion: An emperical test," ERIM Report Series Research in Management ERS-2003-077-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    24. Dipak Jain & Vijay Mahajan & Eitan Muller, 1991. "Innovation Diffusion in the Presence of Supply Restrictions," Marketing Science, INFORMS, vol. 10(1), pages 83-90.
    25. Gupta, Vipin & Surie, Gita & Javidan, Mansour & Chhokar, Jagdeep, 2002. "Southern Asia cluster: where the old meets the new?," Journal of World Business, Elsevier, vol. 37(1), pages 16-27, April.
    26. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    27. Christophe Van den Bulte, 2000. "New Product Diffusion Acceleration: Measurement and Analysis," Marketing Science, INFORMS, vol. 19(4), pages 366-380, June.
    28. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Hauser & Gerard J. Tellis & Abbie Griffin, 2006. "Research on Innovation: A Review and Agenda for," Marketing Science, INFORMS, vol. 25(6), pages 687-717, 11-12.
    2. Ashish Sood & Gareth M. James & Gerard J. Tellis, 2009. "Functional Regression: A New Model for Predicting Market Penetration of New Products," Marketing Science, INFORMS, vol. 28(1), pages 36-51, 01-02.
    3. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    4. Towhidul Islam & Nigel Meade, 2011. "Detecting the impact of market factors on sales takeoff times of analog cellular telephones," Marketing Letters, Springer, vol. 22(2), pages 197-212, June.
    5. Barnes, Belinda & Southwell, Darren & Bruce, Sarah & Woodhams, Felicity, 2014. "Additionality, common practice and incentive schemes for the uptake of innovations," Technological Forecasting and Social Change, Elsevier, vol. 89(C), pages 43-61.
    6. Peter N. Golder & Gerard J. Tellis, 2004. "Growing, Growing, Gone: Cascades, Diffusion, and Turning Points in the Product Life Cycle," Marketing Science, INFORMS, vol. 23(2), pages 207-218, December.
    7. Peters, Kay & Albers, Sönke & Kumar, V., 2008. "Is there more to international Diffusion than Culture? An investigation on the Role of Marketing and Industry Variables," EconStor Preprints 27678, ZBW - Leibniz Information Centre for Economics.
    8. van Everdingen, Y.M. & Fok, D. & Stremersch, S., 2008. "Modeling Global Spill-Over of New Product Takeoff," ERIM Report Series Research in Management ERS-2008-067-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    9. Donald Lehmann & Mercedes Esteban-Bravo, 2006. "When giving some away makes sense to jump-start the diffusion process," Marketing Letters, Springer, vol. 17(4), pages 243-254, December.
    10. Stefan Stremersch & Eitan Muller & Renana Peres, 2010. "Does new product growth accelerate across technology generations?," Marketing Letters, Springer, vol. 21(2), pages 103-120, June.
    11. Goodwin, Paul & Meeran, Sheik & Dyussekeneva, Karima, 2014. "The challenges of pre-launch forecasting of adoption time series for new durable products," International Journal of Forecasting, Elsevier, vol. 30(4), pages 1082-1097.
    12. Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
    13. 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.
    14. Stremersch, S. & Tellis, G.J. & Franses, Ph.H.B.F. & Binken, J.L.G., 2007. "Indirect Network Effects in New Product Growth," ERIM Report Series Research in Management ERS-2007-019-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    15. Christophe Van den Bulte & Stefan Stremersch, 2004. "Social Contagion and Income Heterogeneity in New Product Diffusion: A Meta-Analytic Test," Marketing Science, INFORMS, vol. 23(4), pages 530-544, July.
    16. Laciana, Carlos E. & Rovere, Santiago L. & Podestá, Guillermo P., 2013. "Exploring associations between micro-level models of innovation diffusion and emerging macro-level adoption patterns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(8), pages 1873-1884.
    17. M. Berk Ataman & Carl F. Mela & Harald J. van Heerde, 2008. "Building Brands," Marketing Science, INFORMS, vol. 27(6), pages 1036-1054, 11-12.
    18. 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.
    19. Delre, S.A. & Jager, W. & Bijmolt, T.H.A. & Janssen, M.A., 2007. "Targeting and timing promotional activities: An agent-based model for the takeoff of new products," Journal of Business Research, Elsevier, vol. 60(8), pages 826-835, August.
    20. Stremersch, S. & Lemmens, A., 2008. "Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes," ERIM Report Series Research in Management ERS-2008-026-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

    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:27:y:2008:i:5:p:844-860. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.