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The diffusion of new products in Latin America: a new comparative approach

The diffusion of new products in Latin America: a new comparative approach PurposeThe purpose of this study is to examine the diffusion pattern of new products in Latin America, and to compare the results of principal component analysis with other descriptive approaches.Design/methodology/approachThe author studies the introduction of eight new products in nine Latin American countries, analysing their diffusion rate, market potential, adoption and take-off. He performs a principal component analysis and presents a biplot. The results obtained are compared using the Mantel test.FindingsThe results indicate that the approaches used are complementary. The biplot describes 92 per cent of the explained variance. Except for a few cases, in general, the diffusion pattern in Latin America is mainly determined by cross-country wealth differences.Research limitations/implicationsThis study only analyses durable goods, and does not include any Central American country.Practical implicationsThis study helps companies to predict which will be the characteristics of the diffusion pattern of other new products and to forecast their future sales.Social implicationsThis study helps public actors to decide how to segment the Latin American market when implementing policies that encourage the diffusion of new products.Originality/valueThis research extends our current knowledge on the diffusion of innovations in emerging and less developed countries. This is the first study to compare the characteristics of innovation diffusion patterns in Latin America. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Academia Revista Latinoamericana de Administración Emerald Publishing

The diffusion of new products in Latin America: a new comparative approach

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1012-8255
DOI
10.1108/ARLA-05-2013-0041
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this study is to examine the diffusion pattern of new products in Latin America, and to compare the results of principal component analysis with other descriptive approaches.Design/methodology/approachThe author studies the introduction of eight new products in nine Latin American countries, analysing their diffusion rate, market potential, adoption and take-off. He performs a principal component analysis and presents a biplot. The results obtained are compared using the Mantel test.FindingsThe results indicate that the approaches used are complementary. The biplot describes 92 per cent of the explained variance. Except for a few cases, in general, the diffusion pattern in Latin America is mainly determined by cross-country wealth differences.Research limitations/implicationsThis study only analyses durable goods, and does not include any Central American country.Practical implicationsThis study helps companies to predict which will be the characteristics of the diffusion pattern of other new products and to forecast their future sales.Social implicationsThis study helps public actors to decide how to segment the Latin American market when implementing policies that encourage the diffusion of new products.Originality/valueThis research extends our current knowledge on the diffusion of innovations in emerging and less developed countries. This is the first study to compare the characteristics of innovation diffusion patterns in Latin America.

Journal

Academia Revista Latinoamericana de AdministraciónEmerald Publishing

Published: Jun 10, 2013

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