Deviation Among Technology Reviews: An Informative Enrichment of Technology Evolution Theory for Marketing

45 Pages Posted: 19 Jan 2010

See all articles by Ashish Sood

Ashish Sood

University of California Riverside

S. Stremersch

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Date Written: November 2010 1,

Abstract

Understanding technological change is of critical importance to marketers, as it bears new markets, new brands, new customers, and new market leaders. This paper examines the deviation among reviews of a technology’s performance and its consequences for inferences on technology evolution patterns. The basic premise of the current paper is that technology evolution literature, while highly relevant, is misguided in that it ignores potential deviation among technology reviews. Using a comprehensive dataset of all published reviews, both before and after FDA approval, of 7 statins for cholesterol reduction (LDL) from 1982 to 2007, the authors find that: (1) there exists vast deviation among reviews of technology performance leading to systematic bias in the portrayal of the path of technology evolution, especially if one relies only on manufacturer’s claims, (2) such deviation does not fade over time, (3) technology review (study design) characteristics affect the stated performance and, (4) both higher technology performance and a higher deviation affect sales positively, also when one controls for a firm’s marketing expenditures. We discuss the implications of these findings for technology evolution theory, managerial practice and public policy.

Keywords: technology evolution, reviews, performance, statins, sales, detailing, marketing, innovation

JEL Classification: C44, M31, M, O32

Suggested Citation

Sood, Ashish and Stremersch, Stefan, Deviation Among Technology Reviews: An Informative Enrichment of Technology Evolution Theory for Marketing (November 2010 1,). ERIM Report Series Reference No. ERS-2010-005-MKT, Available at SSRN: https://ssrn.com/abstract=1538730

Ashish Sood (Contact Author)

University of California Riverside ( email )

United States
6782059931 (Phone)

HOME PAGE: http://www.ashishsood.net

Stefan Stremersch

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands
+31 10 408 8719 (Phone)
+31 10 408 9160 (Fax)

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