Network effects and new product success: strengthening product advantage, overcoming customer uncertainty?

Susanna Winter

International Journal of Business Innovation and Research, 2012, vol. 6, issue 1, 1-27

Abstract: Prior research on whether network effects outweigh product advantage in determining the market success of new products is mainly theoretical with little empirical evidence. This paper dissects the network effects phenomenon, and discovers that different network effect dimensions exert conflicting moderating influences on product performance. Examining survey data on 272 new product launches, the results indicate that product advantage matters regardless of network effects. Further, while some components of network effects can be leveraged to help customers overcome their uncertainties towards new product adoption, some create additional anxieties that harm product performance. Implications for marketing practitioners as well as academia are discussed.

Keywords: network effects; product advantage; customer uncertainty; new product launches; new product performance; new product success; market success; new products; conflicting influences; moderating influences; new product adoption; marketing practitioners; academia; business innovation; R&D; research and development. (search for similar items in EconPapers)
Date: 2012
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