Business Culture Persuades Product Initiatives
A University of Illinois marketing research has discovered that the business culture that firms put emphasis on, affects new product initiatives.
According to the study, innovative thoughts spring the majority from companies that stress technique, rather than customer requirements or staying ahead of rivals.
The research showed that companies, which concentrate on their rivals, make more new product suggestions as compared to technology-based companies.
But the thoughts typically net only subtle advances, such as the slow development of wireless reading tools, rather than breakthroughs close to the move from compact discs to music downloads.
William Qualls, a U. of I. marketing professor who co-wrote the study, stated, "Customer- and competitor-oriented companies are more likely to come up with variations of existing products because they watch their markets closely and react to demands rather than building on breakthrough technology."
He said that the results recommend that companies are best served by a reasonable viewpoint, which comprises all three cultures.
Qualls stated that while an emphasis on technology strengthens novelty, market-driven companies are more set to what users need, giving them an edge in marketing novel goods.
Results are based on reactions from around 200 marketing and research managers who work for companies, which produce household and personal goods, from appliances to skin cream.
The outcomes of the research will appear in the Journal of Product Innovation Management. (With Input from Agencies)