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In this paper we propose that business strategy influences new product activity both directly and indirectly via its influence on market orientation. Accordingly, we develop a framework linking firms' relative emphasis on cost leadership, product differentiation and focus strategies to firms' customer and competitor orientation as well as their new product development and introduction activity. We use this framework to develop a simultaneous equations model that is tested on survey data from 175 Dutch firms of varying size and across different industries in the manufacturing sector. The surprising findings are that a greater emphasis on a focus strategy results in a decreased emphasis on customer orientation and that competitor orientation has a negative direct influence on new product activity and an indirect positive effect via customer orientation. We discuss the implications of these findings for theory and practice.
Scarcity and preferenceVerhallen, T.M.M.; Robben, H. ABSTRACTThe experiment reported examined the effects of four conditions of product availability on consumers' preferences for recipe books, and the corresponding uniqueness judgments and cost evaluations for the same products. These conditions were unlimited availability, limited availability due to popularity, limited availability due to limited supply and accidental unavailability.The results varied according to whether other people's choices depended on the participants' revealed preferences in the investigation. Without this social constraint, participants preferred a book of limited availability due to market conditions to books that were accidently unavailable or of unlimited availability. This effect was most pronounced for books that were of limited availability due to both popularity and limited supply. When a social constraint was present, no significant differences in preferences were observed.Books of limited availability due to market circumstances were perceived as more costly and more unique than books that were accidentally unavailable or abundantly available. Emphasizing the presence of others led to a decrease in the uniqueness judgment for a good of limited availability, especially when the limited availability was due to popularity. Books of limited availability due to both popularity and limited supply were perceived as more costly regardless of the social situation.Availability of goods influences consumers' preferences, and this effect is mediated through perceptions of uniqueness and cost evaluations.
This study aims to develop an integrative framework for green new product development (NPD) based on the existing literature and to empirically study the applicability of that integrative framework. This study answers three calls: for research that is rooted in a traditional NPD perspective, for research that integrates marketing aspects in a model of green NPD, and for research that acknowledges variations in greenness. The results from eight case studies in two industries (i.e., the chemical and food industries) substantiate the integrative framework and suggest that it provides a good basis for understanding green NPD. The study demonstrates that green NPD is not fundamentally different from traditional NPD but does contain features and underlying mechanisms that reflect the increased complexity of green NPD. The framework incorporates the targeting and positioning of green product innovations, thus establishing itself as a holistic framework. Most importantly, the study shows how greenness plays a pivotal role in tying the various elements of the framework together. The realized greenness of a new product is a central concept that helps managers understand complex relationships among industry type, green targeting, and green positioning.Index Terms-Case studies, chemical industry, design for the environment, food industry, new product development (NPD), product innovations, sustainability.
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