Pricing in the International Takeoff of New Products

54 Pages Posted: 10 Nov 2012

See all articles by Deepa Chandrasekaran

Deepa Chandrasekaran

University of Texas at Austin

Joep Arts

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

Date Written: September 9, 2012

Abstract

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.

Keywords: International Takeoff, Diffusion of Innovations, New Products, New Product Pricing, Level of Data Aggregation

JEL Classification: M31

Suggested Citation

Chandrasekaran, Deepa and Arts, Joep and Tellis, Gerard J. and Frambach, Ruud T., Pricing in the International Takeoff of New Products (September 9, 2012). Marshall School of Business Working Paper No. MKT 1-13. Available at SSRN: https://ssrn.com/abstract=2165263 or http://dx.doi.org/10.2139/ssrn.2165263

Deepa Chandrasekaran

University of Texas at Austin ( email )

2317 Speedway
Austin, TX 78712
United States
3236330823 (Phone)

Joep Arts

VU University Amsterdam - Department of Information Systems, Marketing and Logistics ( email )

Netherlands

Gerard J. Tellis (Contact Author)

University of Southern California - Marshall School of Business, Department of Marketing ( email )

Hoffman Hall 701
Los Angeles, CA 90089-0443
United States
213-740-5031 (Phone)
213-740-7828 (Fax)

HOME PAGE: http://gtellis.net

Ruud T. Frambach

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, 1081 HV
Netherlands

HOME PAGE: http://www.feweb.vu.nl/nl/afdelingen-en-instituten/marketing/staff/t-frambach/index.asp

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