Learning effect in multinational diffusion of consumer durables: an exploratory investigation

Article Abstract:

Literature reflects that a product/technological innovation introduced later in a country results in faster diffusion as the consumers in the lag market have an opportunity to learn about the new product from the consumers in the lead market. A systematic understanding of the learning that takes place between consumers in two countries - a pair of lead and lag countries - can provide insights for a firm's international market entry decisions. To provide a richer understanding of the underlying structure and patterns that govern this process, propositions linking factors (country characteristics, product/innovation characteristics, and time lag) to the learning process are drawn. Subsequently, these propositions are tested through an empirical investigation of the diffusion patterns of four consumer innovations in multiple European countries. The findings help provide some preliminary guidelines for manufacturers regarding selection of foreign markets and the timing and order-of-entry decisions. (Reprinted by permission of the publisher.)

Consumer goods industry, New products, Product introduction, Diffusion of innovations

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Explaining the variation in short-term sales response to retail price promotions

Article Abstract:

This study focuses on the short-term sales response to price promotions in retail grocery stores and attempts to explain in variations using frequency of price promotions and the consecutive scheduling of price promotions. Retail managers' expectations and tenets from behavioral theories provide the basis for the hypotheses that the frequency of price promotions and consecutive scheduling of price promotions affect short-term response to price promotions. The hypotheses are tested on three frequently purchased product categories, using store-level data from retail chains in three major markets. The analysis is validated with additional data on the same product categories and markets. A variety of managerial implications are drawn from the results and suggestions for future research are offered. (Reprinted by permission of the publisher.)

Prices and rates, Retail industry, Retail trade, Pricing, Sales promotions, Sales

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