Design and Delivery of New Product Preannouncement Messages

Chen, Chien Wei; Wong, Veronica

doi:10.2753/mtp1069-6679200206

Cited by 14 publications

(10 citation statements)

References 76 publications

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“…Burke, Cho, DeSarbo, and Mahajan (1990) NPA behavior outcome-consumer reactions Lab participants Announcements containing unfavorable product information and announcements regarding the entire industry have greater impact on consumer purchase intention. Chen and Wong (2012) Antecedent factors that influence a firm's NPP behavior Key informants (firm managers)…”

Section: Appendixmentioning

confidence: 99%

The Effect of New Product Preannouncements on the Evaluation of Other Brand Products

Thorbjørnsen

Dahlén²,

Lee³

2015

J of Product Innov Manag

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Some firms preannounce new products long before they are actually available on the market. Previous research has investigated the effects of such new product preannouncements (NPPs) on consumer and competitor responses. This paper examines how NPPs affect consumers' construal of and preferences for the new product and, in turn, how these evaluations influence their preferences for the brands' other products. Specifically, the paper demonstrates that consumers' construal level of NPPs spills over to their construal of other products in the brand family, causing a positive, biased evaluation of these products. Three experimental studies reveal that the mere information about an NPP can shift evaluation of currently available brand products in a positive direction through construal-level spillover and increased perceptions of similarity. The studies contrast NPPs to new product announcements (NPAs) and consistently find more positive results for the former. Moreover, the studies find that product newness has a moderating effect on the results, such that the positive spillover effects are more pronounced for really new products than for incrementally new products. The results also show that the effects are contingent on the credibility of the NPP: If consumers do not consider the NPPs credible, no positive spillover effects will materialize. Finally, the studies demonstrate that the positive evaluative spillover is specific to the products in the brand family and does not affect consumers' perceptions or choice of competitor products. Consumers actually rate the competing brand's remaining products lower when the focal brand engages in NPPs. The study has important implications for managers regarding how to use NPPs to influence consumers' construal and evaluations of brand products. Practitioner Points• New product preannouncements (NPPs) seem to generate more positive consumer responses than new product announcements (NPAs). • The study demonstrates positive spillover effects from NPPs to other products in the brand family. • This positive spillover effect is more pronounced for really new products than for incrementally new products.

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Section: Appendixmentioning

confidence: 99%

The Effect of New Product Preannouncements on the Evaluation of Other Brand Products

Thorbjørnsen

Dahlén²,

Lee³

2015

J of Product Innov Manag

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“…Addressing incomplete findings (Chaney and Devinney, 1992;Schöler et al, 2013;Sorescu et al, 2007) regarding the relationship between innovativeness in preannouncements and stock market return, the present study builds on research (e.g., Chen and Wong, 2012;Homburg et al, 2009;Jung, 2011;Mishra and Bhabra, 2001;Sorescu et al, 2007) examining information characteristics. This research extends and connects these literatures by examining the role of information quality-a signal which reduces message receiver uncertainty.…”

Section: Discussionmentioning

confidence: 99%

Enhancing Stock Market Return with New Product Preannouncements: The Role of Information Quality and Innovativeness

Lee¹,

Chen²,

Hartmann³

2015

J of Product Innov Manag

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To advance development and application of signaling theory in the new product preannouncement literature while seeking to resolve ambiguity regarding the influence of innovativeness on stock market return, the role of information quality is examined. Specifically, this study investigates the effect of innovativeness across low and high levels of information quality. The results, ascertained using event study methodology on a sample of 243 new product preannouncements collected over a nine-year period, indicate that higher information quality increases the strength of the positive relationship between innovativeness and stock market return. The findings offer managers insight into what role information quality plays in new product preannouncements that can help their firms generate higher stock market return. Practitioner Points• Information quality, composed of three dimensionstrustworthiness, verifiability, and consistency-affects stock market returns on new product preannouncements. • When new products are preannounced with high information quality, product innovativeness is positively associated with stock market return. When new products are preannounced with low information quality, there is no effect of product innovativeness on stock market return. • When preannouncing highly innovative new products, firms seeking to maximize short-term stock market return should preannounce using high information quality if they intend and are able to develop and commercialize the product. • When preannouncing low innovative products, there is no effect on stock market return regardless of whether preannouncement information quality is low or high.

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“…Schatzel and Calantone [29] point out that new product announcement information influences the behavior through the variable of an individual's future expectation. Chen and Wong [7] divide NPP information into clear message and unclear message from whether it contains enough clues and find that a platform is more likely to communicate more clearly NPP messages with more cues for a strongly branded product. However, Hagiu and Halaburda [16] show that it is wise not to inform pricing information under competition because knowing more information increases consumer power.…”

Section: Impact Of Information On Decision-makersmentioning

confidence: 99%

“…(i) It is a remedy for the emergence of a large number of new platform-type product preannouncement problems due to the lack of studies in a two-sided market environment. (ii) The paper develops a game model of the two-sided market, which is a supplement to the empirical research [7]. (iii) This paper develops a game model from the perspective of the NPP information receiver rather than the sender, and the relevant studies' results can form mutual support with the studies from the perspective of the sender [32].…”

Section: Impact Of Information On Decision-makersmentioning

confidence: 99%

“…For example, Xbox Project director Phil Spencer said, "By preannouncing Project Scorpio today, we want to give developers and partners have enough time to leverage their capabilities so that APP developers have more time to react and reduce the risk of new product development for various APP developers". That is, platforms need to take into account the information perception and interests of users and developers when making NPP decisions [7]. In fact, in the competition process of Xiaomi and Apple, some of the preannouncements of their smartphones (e.g.…”

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confidence: 99%

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Preannouncement strategy of platform-type new product for competing platforms: Technical or marketing information

Jiang¹,

Xiao²

2022

JIMO

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What message should be released to consumers and developers is an important part of the preannouncement strategy of platforms' new product. From the perspectives of consumers and developers' information perceptions, we develop a game model of two-sided market, which can better describe the impacts of information preannouncement on consumers, developers, and platforms behavior in a competitive environment. There are two preannouncement strategies: Technical or marketing information. Our studies reveal that (i) when the development capabilities are heterogeneous enough, both platforms release technical information; (ii) both platforms preannounce marketing information when the heterogeneity of development capability is sufficiently small, even if it decreases total social welfare; (iii) the platform lacking competitive advantage is more inclined to adopt a strategy different from the competitive advantage platform, and competitive advantage platform is likely to change the preannouncement strategy constantly; (iv) the heterogeneity of platforms is the prerequisite for the asymmetric equilibrium, even if it may decrease the overall social welfare.

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Design and Delivery of New Product Preannouncement Messages

Cited by 14 publications

References 76 publications

The Effect of New Product Preannouncements on the Evaluation of Other Brand Products

The Effect of New Product Preannouncements on the Evaluation of Other Brand Products

Enhancing Stock Market Return with New Product Preannouncements: The Role of Information Quality and Innovativeness

Preannouncement strategy of platform-type new product for competing platforms: Technical or marketing information

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