LAUNCH TACTICS AND PRODUCT CANNIBALIZATION IN HIGH TECHNOLOGY MARKETS

Chien-Wei Chen,Nai-Hwa Lien 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.1

Product launch is perhaps the most important but risky phase in new product development process (Calantone & Montoya-Weiss, 1993). Product management at the launch phase aims to gain market acceptance, which, in turn, may maximize the chances of profitability (Guiltinan, 1999). One of the hidden, but real, threats for the vast majority of new product launches into a market is cannibalization, which refers to the process by which a new product gains a portion of its sales by diverting sales from an existing product (Harvey & Kerin, 1979;Lomax, Hammond, East, and Clemente, 1997; Traylor, 1986). High-technology markets are characterized by uncertainties that derive from market, technology, and competitive factors (Moriarty & Kosnik, 1989). Different information processing patterns among buyers are likely to emerge in high-technology markets (Capon and Glazer, 1987; Glazer, 1991). Accordingly, marketing strategies and tools are required to adapt to market environments. In response to environmental complexity and turbulence, marketers of high-tech products usually resort to marketing communications to assuage customers’ fear and doubt involved in product adoption (Lee and O’Connor, 2003). Such high-tech marketing practices, in a sense, illuminate signaling theory logic to mitigate uncertainty (Gulati and Higgins, 2003). Drawing on signaling theory, this research is to explore the circumstances under which launch tactics may result in salient product cannibalization. It is proposed that the cannibalization of product launch varies with the interactions between launch tactics and organizational/market factors. The findings of this research indicate that the cannibalization effect of price similarity will be greater for a launching firm possessing great product category strength. The cannibalization effects of preannouncing timing and price similarity tend to be greater in a highly competitive market context, as opposed to a low competitive context. Nevertheless, relative communication effort in support of product launch results in smaller cannibalization under a highly competitive condition. Product cannibalization derived by earlier preannouncements will become greater in a highly technologically turbulent market. This research contributes to the marketing and product management literature in two main respects. First, it represents an initial effort to empirically test the link between tactics in support of product launch and product cannibalization under different firm and market conditions. Second, we advance understanding of the cannibalization effects incurred by launch tactics by adopting a signaling approach. The fit between marketing strategy and its context has significant implications for new product performance, which should be captured in terms of the potential cannibalization between a new product and other products within the same firm, in addition to its sales and profitability. The findings may also offer guidelines for managing launch tactics. To make right decisions on developing appropriate tactics, the firms must accurately evaluate the firm and market characteristics and, simultaneously, take into account the amount of cannibalization caused by different tactics.

LAUNCH TACTICS AND PRODUCT CANNIBALIZATION IN HIGH TECHNOLOGY MARKETS

Chien-Wei Chen,Nai-Hwa Lien 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

Product launch is perhaps the most important but risky phase in new product development process (Calantone & Montoya-Weiss, 1993). Product management at the launch phase aims to gain market acceptance, which, in turn, may maximize the chances of profitability (Guiltinan, 1999). One of the hidden, but real, threats for the vast majority of new product launches into a market is cannibalization, which refers to the process by which a new product gains a portion of its sales by diverting sales from an existing product (Harvey & Kerin, 1979;Lomax, Hammond, East, and Clemente, 1997; Traylor, 1986). High-technology markets are characterized by uncertainties that derive from market, technology, and competitive factors (Moriarty & Kosnik, 1989). Different information processing patterns among buyers are likely to emerge in high-technology markets (Capon and Glazer, 1987; Glazer, 1991). Accordingly, marketing strategies and tools are required to adapt to market environments. In response to environmental complexity and turbulence, marketers of high-tech products usually resort to marketing communications to assuage customers’ fear and doubt involved in product adoption (Lee and O’Connor, 2003). Such high-tech marketing practices, in a sense, illuminate signaling theory logic to mitigate uncertainty (Gulati and Higgins, 2003). Drawing on signaling theory, this research is to explore the circumstances under which launch tactics may result in salient product cannibalization. It is proposed that the cannibalization of product launch varies with the interactions between launch tactics and organizational/market factors. The findings of this research indicate that the cannibalization effect of price similarity will be greater for a launching firm possessing great product category strength. The cannibalization effects of preannouncing timing and price similarity tend to be greater in a highly competitive market context, as opposed to a low competitive context. Nevertheless, relative communication effort in support of product launch results in smaller cannibalization under a highly competitive condition. Product cannibalization derived by earlier preannouncements will become greater in a highly technologically turbulent market. This research contributes to the marketing and product management literature in two main respects. First, it represents an initial effort to empirically test the link between tactics in support of product launch and product cannibalization under different firm and market conditions. Second, we advance understanding of the cannibalization effects incurred by launch tactics by adopting a signaling approach. The fit between marketing strategy and its context has significant implications for new product performance, which should be captured in terms of the potential cannibalization between a new product and other products within the same firm, in addition to its sales and profitability. The findings may also offer guidelines for managing launch tactics. To make right decisions on developing appropriate tactics, the firms must accurately evaluate the firm and market characteristics and, simultaneously, take into account the amount of cannibalization caused by different tactics.

영동선 동백산-도계간 장대터널 시공사례

김용일(Yong-Il Kim),윤영훈(Young-Hoon Yoon),조상국(Sang-Kook Cho),양종화(Jong-hwa Yang),이내용(Nai-Yong Lee) 한국철도학회 2002 한국철도학회 학술발표대회논문집 Vol.- No.-

영동선 동백산-도계간 터널내 반사법 탄성파탐사 적용사례

김용일(Yong-Il Kim),윤영훈(Young-Hoon Yoon),조상국(Sang-Kook Cho),양종화(Jong-hwa Yang),김장수(Jang-Soo Kim),이내용(Nai-Yong Lee) 한국철도학회 2002 한국철도학회 학술발표대회논문집 Vol.- No.-

Seismic Reflection Methods(TSP, HSP) have been applied in the junction between 2nd Adit and Main Tunnel (Solan Tunnel) of Youngdiong Railroad(Mt. Dongbaek~Dokye). In this paper, methods and case study will be introduced to predict discontinuties in the tunnel before excavation by the Seismic Reflection Methods(TSP, HSP)and secure construction stability of the tunnel in blasting and excavation.

영동선 동백산-도계간 장대터널 시공사례 연구

김용일,윤영훈,조상국,양종화,이내용,Kim, Yong-Il,Yoon, Young-Hoon,Cho, Sang-Kook,Yang, Jong-Hwa,Lee, Nai-Yong 한국터널지하공간학회 2002 터널기술 Vol.4 No.2

본 논문은 영동선 동백산역에서 도계역사이를 연결하는 장대터널 (솔안터널)의 시공사례에 대한 연구결과를 제시하였다. 본 터널은 완공시 길이 16.2Km로 국내최장터널이 된다. 본 터널 현장은 단층, 공동 및 함탄층으로 구성된 지질학적으로 복잡한 지역에 위치한다. 2번사갱 굴착을 위하여 사전에 전기비저항탐사 및 지하레이다탐사 등의 지구물리학적인 탐사방법이 단층, 공동 및 함탄층을 사전에 찾아내는데 활용되었으며, 이 방법은 상당한성과가 있었다. 이 물리탐사결과 및 현지 시추자료는 터널 보강설계를 개선하기 위한 자료로 활용되었다. 강관다단 그라우팅 방법은 단층 및 공동이 발달한 지역에서 좋은 보강 및 그라우팅효과를 발휘함이 입증되었다. 함탄층에서는 스웰렉스 록볼트와 공내 몰탈 그라우팅을 병행한 방법이 효과적임이 확인되었다. This paper presents a case study on the construction of a long tunnel named as "Solan tunnel", which connects between Mt. Dongbaek station and Dokye station in the Youngdong Railroad. The tunnel will be the longest tunnel with length of 16.4 km in Korea when completed. The tunnel site is located in a complex geological region with faults, cavities and coal measures. In construction of adit No. 2, geophysical investigation methods such as electrical resistivity method and GPR(Ground Penetration Radar) were used to detect faults, cavities and coal measures in advance with some success. The geophysical investigation results and in-situ boring data were used as feedback to improve tunnel reinforcement design. Also, the tube umbrellas of grouted steel pipes were found to have a good reinforcement and grouting effects in zones of faults, cavities. In zones of coal measures, swellex rockbolts with mortar grouting were verified as successful.

영동선 동백산-도계간 터널내 반사법 탄성파탐사 적용사례

김영일,조상국,양종화,김장수,이내용,Kim, Yong-Il,Cho, Sang-Kook,Yang, Jong-Hwa,Kim, Jang-Soo,Lee, Nai-Yong 한국터널지하공간학회 2003 터널기술 Vol.5 No.1

영동선 동백산-도계간 철도이설공사 중 제2사갱과 본선 접속부에서 실시한 반사법 탄성파 탐사(TSP, HSP)를 통하여 터널내 불연속면에 대한 존재 유무를 확인하고 발파 및 굴진 등 시공 및 안정성 확보에 만전을 기하고자 한다. Seismic Reflection Methods (TSP, HSP) have been applied in the junction between 2nd Adit and Main Tunnel (Solan Tunnel) of Youngdiong Railroad (Mt. Dongbaek~Dokye). In this paper, methods and case study will be introduced to predict discontinuties in the tunnel before excavation by the Seismic Reflection Methods (TSP, HSP)and secure construction stability of the tunnel in blasting and excavation.