EconPapers    
Economics at your fingertips  
 

Firms and the Creation of New Markets

Erin Anderson and Hubert Gatignon

Chapter 16 in Handbook of New Institutional Economics, 2008, pp 401-431 from Springer

Abstract: New markets do not emerge, nor do they appear. They are made by the activities of firms. New markets are created when firms correctly sense (by accident or by design) a latent need and communicate their solution to that need: markets spring into being when economic actors shift resources to that firm’s solution. The most visible way to create a new market is to offer a product/service that is novel, thereby addressing needs that were not met (and perhaps not even sensed). Much of this chapter focuses on firms’ efforts to develop and commercialize new offerings, and on how buyers respond, thereby creating new markets. However, new markets are also created when firms cultivate an underserved clientele with established products. Much of marketing is about how to bring new customers into a developed industry (as opposed to rearranging market shares among existing customers). This chapter will also highlight these market-creation activities.

Keywords: Transaction Cost; Market Research; Vertical Integration; Path Dependence; Entry Mode (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-69305-5_17

Ordering information: This item can be ordered from
http://www.springer.com/9783540693055

DOI: 10.1007/978-3-540-69305-5_17

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-04-02
Handle: RePEc:spr:sprchp:978-3-540-69305-5_17