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

Learning effect in multinational diffusion of consumer durables: An exploratory investigation 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of the Academy of Marketing Science Springer Journals

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

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References (49)

Publisher
Springer Journals
Copyright
Copyright © Academy of Marketing Science 1997
Subject
Economics / Management Science; Business/Management Science, general; Marketing; Social Sciences, general
ISSN
0092-0703
eISSN
1552-7824
DOI
10.1177/0092070397253003
Publisher site
See Article on Publisher Site

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.

Journal

Journal of the Academy of Marketing Science – Springer Journals

Published: Jun 1, 1997

Keywords: Mean Square Error; Product Category; Cellular Phone; Mean Absolute Deviation; Lead Market

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