Award-winning scientific research reveals that firms who market their highly innovative products could put off potential buyers
Latest press releasesDr Qing Wang, Reader in Marketing and Innovation at Warwick Business School, together with co-authors David Alexander of St Thomas University and John Lynch of Duke University, has been awarded the 2009 Robert D Buzzell MSI Best Paper Award by the Marketing Science Institute (MSI) in the U.S. for their significant contribution to marketing practice and thought and for the lasting value of their research to marketing executives.
Their research on marketing of really new products was funded by MSI and published in the MSI report and subsequently in the Journal of Marketing Research in an article, As Time Goes By: Warm Intentions and Cold Feet for Really New versus Incrementally New Products.
Several categories of new technological products, ranging from 'really new products' (RNPs) such as Blogs and streaming TV to 'incrementally new products' (INPs) such as flat screen TVs and DVD players, were tested on a sample of 2,692 consumers. In four field studies conducted in collaboration with the CBS television network in the U.S., it is revealed:
While novelty may create advertising buzz, when it comes time to parting with their money, consumers prefer the familiar over the really new - especially when using the new product requires a behaviour change.
Individuals were twice as likely to state their intention to buy INPs as to buy RNPs, regardless of any cost difference. Furthermore, over time, the likelihood those buyers will follow through on their stated intention to buy increases for INPs, but decreases for RNPs.
Qing Wang explains the implications of these findings: "People are actually reluctant to purchase things that are very new and which require a change in their familiar lifestyle habits. This could explain the failure of marketing for the innovative Segway scooter, for example. Our research shows that companies planning to market products should try and minimize the extent to which these products are promoted as 'really new'. They also need to consider the effects of 'preannouncing' really new products, such as the 3G mobile, as our results have shown that there is a decreasing likelihood that buyers will follow through on purchase intentions of this type of product over time, in which case, the buzz may fail to generate any lasting impact on real purchases."
Their research on marketing of really new products was funded by MSI and published in the MSI report and subsequently in the Journal of Marketing Research in an article, As Time Goes By: Warm Intentions and Cold Feet for Really New versus Incrementally New Products.
Several categories of new technological products, ranging from 'really new products' (RNPs) such as Blogs and streaming TV to 'incrementally new products' (INPs) such as flat screen TVs and DVD players, were tested on a sample of 2,692 consumers. In four field studies conducted in collaboration with the CBS television network in the U.S., it is revealed:
While novelty may create advertising buzz, when it comes time to parting with their money, consumers prefer the familiar over the really new - especially when using the new product requires a behaviour change.
Individuals were twice as likely to state their intention to buy INPs as to buy RNPs, regardless of any cost difference. Furthermore, over time, the likelihood those buyers will follow through on their stated intention to buy increases for INPs, but decreases for RNPs.
Qing Wang explains the implications of these findings: "People are actually reluctant to purchase things that are very new and which require a change in their familiar lifestyle habits. This could explain the failure of marketing for the innovative Segway scooter, for example. Our research shows that companies planning to market products should try and minimize the extent to which these products are promoted as 'really new'. They also need to consider the effects of 'preannouncing' really new products, such as the 3G mobile, as our results have shown that there is a decreasing likelihood that buyers will follow through on purchase intentions of this type of product over time, in which case, the buzz may fail to generate any lasting impact on real purchases."
See more:
http://www.msi.org/publications/publication.cfm?pub=1265
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