Pricing in the International Takeoff of New Products
University of Texas at Austin
VU University Amsterdam - Department of Information Systems, Marketing and Logistics
Gerard J. Tellis
University of Southern California - Marshall School of Business, Department of Marketing
Ruud T. Frambach
VU University Amsterdam
September 9, 2012
Marshall School of Business Working Paper No. MKT 1-13
This study focuses on the effect of two dimensions of price (relative price and price volatility) on the international takeoff of new products. The study examines these drivers of takeoff using a novel data set of bimonthly observations from 7 new consumer electronic products across each of 8 countries. The empirical analysis reveals that both relative price and price volatility significantly impact the hazard of takeoff. However, while the effect of relative price holds steady across contexts, the effects of price volatility are moderated by wealth, culture, and contagion. The use of temporally disaggregate data at the bimonthly level allows the identification of the effect of price volatility and enables identification of takeoff more precisely than with annual data.
Number of Pages in PDF File: 54
Keywords: International Takeoff, Diffusion of Innovations, New Products, New Product Pricing, Level of Data Aggregation
JEL Classification: M31working papers series
Date posted: November 10, 2012
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