Retaliatory Behavior to New Product Entry

Journal of Marketing, Vol. 63, Issue 4, pp. 90-106,1999

Posted: 11 Oct 2014 Last revised: 7 Apr 2016

See all articles by Sabine Kuester

Sabine Kuester

University of Mannheim, Department of Marketing & Innovation

Christian Homburg

University of Mannheim - Department of Marketing; University of Melbourne - Department of Management and Marketing

Thomas S. Robertson

University of Pennsylvania - Marketing Department

Date Written: October 1, 1999

Abstract

In this article, the authors focus on the defense strategies that firms pursue when threatened by rival new products in their markets. They investigate retaliation as a multidimensional construct. The integrative framework combines the analysis of the marketing instrument used to react and the speed and breadth of retaliation. Results emphasize the importance of the rival product's innovativeness in generating a reciprocal retaliation (a move in kind), though innovativeness slows the incumbent's reaction time. Market growth encourages rapid retaliation, especially on the product mix, whereas in concentrated markets, firms react less strongly on the product mix and exhibit slower reactions. The study also captures the phenomenon of incumbent inertia: Larger incumbents retaliate less strongly and more slowly.

Keywords: Product management, new product development, product orientation, new products

JEL Classification: M31

Suggested Citation

Kuester, Sabine and Homburg, Christian and Robertson, Thomas S., Retaliatory Behavior to New Product Entry (October 1, 1999). Journal of Marketing, Vol. 63, Issue 4, pp. 90-106,1999. Available at SSRN: https://ssrn.com/abstract=2508231

Sabine Kuester (Contact Author)

University of Mannheim, Department of Marketing & Innovation ( email )

Germany

Christian Homburg

University of Mannheim - Department of Marketing ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

University of Melbourne - Department of Management and Marketing

5th Floor Babel Building
Melbourne, Victoria 3010
Australia

Thomas S. Robertson

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

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