Effect of Price-Discount Distribution in Multi-Unit Price Promotions on Sales Value of a New Product: Evidence from Multi-Unit Auctions
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چکیده
Developing new products is said to be the lifeblood of companies. Due to changing consumer needs and increasing competition, companies that want to enhance their market position and grow must develop new products to improve their competitive posture or even survive. New product development often requires a lot of resources in terms of research and invested capital. Unfortunately, the success rate of new products in the market is generally low. For example, Stevens and Burley (2003) reported that the failure rate of new products is somewhere between 40% and 75%. Cooper (2001) mentioned that approximately 46% of all resources allocated to product development and commercialization by U.S. firms had been spent on products that were cancelled or failed to yield an adequate financial return. Given the high costs associated with new product development, it is imperative for firms to find ways to market their new products better to minimize the probability of failure. Numerous studies have been conducted to determine the causes of new product failure and success. A common finding is that a good product idea and quality cannot by themselves guarantee the success and many other factors such as sales promotions have to be considered (Montoya-Weiss & Calantone, 1994; Calantone et al., 1996). In this paper, we tackle the issue of price or sales promotions as a tool that can be used to increase sales for new products.
منابع مشابه
Effect of Price-Discount Distribution in Multi-Unit Price Promotions on Consumers’ Willingness to Pay, Sales Value, and Retailers’ Revenue: Evidence from Multi-Unit Auctions
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تاریخ انتشار 2015