12/4/2023 0 Comments Cut monthly expenses![]() ![]() ![]() The study revealed an exception to the superior performance of products introduced during recessions: Items launched during severe recessions struggle to survive. Launching during a severe recession can imperil survival. As customers become increasingly anxious and risk averse, they may be wary of buying from companies that seem likely to go out of business, perceiving that those in a position to roll out new products are more likely to endure. Finally, going ahead with new products in the midst of a weak economy is often perceived as a signal of corporate health. In addition, the cost of running ads is often lower, providing more bang for the buck. That’s because there is less noise in the marketplace, making it easier to differentiate products and draw consumers’ attention. The authors also analyzed historical market share and sales data and found that products introduced during recessions performed better on these measures as well.Įven though people tend to limit spending and companies generally scale back advertising during downturns, the timing may confer an advantage on firms that go ahead with launches, the researchers say. Similarly, automobiles launched during recessions in the United States survived 19% longer than cars introduced during economic expansions. UK consumer products launched during a recession survived 14% longer, on average, than comparable products launched during non-recessionary periods. Products launched during a recession survive longer. Talay and his coauthors derived several key insights from their research. A recession might be the ideal time to launch your product no matter what it is.” Timing Launches for Maximum Impact But the effects are consistent across products and categories. “I thought discretionary-product launches would be more likely to fail, because nonessential purchases tend to decline in tough economies. Berk Talay, the lead author of the study and a professor at the University of Massachusetts Lowell. “I expected to see a big difference between the success of necessities, such as toilet paper and food, and that of discretionary products, such as hair dye,” says M. Bureau of Economic Analysis to track recessions in each economy as well as publicly available data on each product’s sales, market share, and life span. Finally, they looked at data from the UK Office for National Statistics and the U.S. launches from sources including Automotive News and the New Encyclopedia of Motor Cars. They gathered information on UK launches from AiMark, a Netherlands-based marketing organization, and collected data on U.S. The researchers explored three questions: How do products introduced during recessions perform relative to ones launched during booms? Does the severity of the recession affect performance? And does the timing within the recession matter? They analyzed 8,981 product launches in the UK in 20 fast-moving consumer goods categories from 1995 to 2012, along with 1,071 product launches in the U.S. ![]() But a new study finds that products launched during recessions outperform on several important measures. In such a climate, launching a product-an expensive and uncertain endeavor in the best of times-would seem to make little sense. Consumers curb spending, companies cut costs, and we all wait anxiously for the economy to recover.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |