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

This work is concerned with such matters as: (1) the review and analysis of proposals submitted by industry groups; (2) attending public hearings and meetings with the public and industry groups; (3) conducting referenda; (4) establishing machinery for operation of agreements and orders; (5) preparing reports recommending administrative and regulatory action, and appropriate documents to achieve such action; (6) giving market administrators advice and assistance regarding the interpretation of orders and agreements, and administrative and procedural matters; (7) interpretation and compliance with marketing regulations; and (8) program appraisal and qualifications of cooperatives | Marketing Science Vol. 00 No. 0 Xxxxx 2008 pp. 1-17 ISSN 0732-2399 IEISSN1526-548X1081000010001 info rms I DOI 2008 INFORMS Global Takeoff of New Products Culture Wealth or Vanishing Differences Deepa Chandrasekaran Gerard J. Tellis Marshall School of Business University of Southern California Los Angeles California 90089 dchandra@ tellis@ 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. Key words diffusion of innovations global marketing consumer innovativeness marketing metrics new products hazard model product life cycles History This paper was received on July 11 2006 and was with the authors 8 months for 2 revisions processed by Peter Golder. Introduction Markets are becoming increasingly global with faster introductions of new products and more intense global competition than ever before. In this environment firms need to know how new products diffuse across countries which markets are most innovative and in which markets they should first introduce new products. We use the term product broadly to refer to both goods and services. Recently studies have introduced and validated a new metric to measure how quickly a market adopts a new product . the takeoff

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