Browsing by Author "Calantone, Roger"
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Item Breakeven Time on New Product Launches: An Investigation of the Drivers and Impact on Firm Performance(Project Development & Management Association, 2014) Calantone, Roger; Randhawa, Praneet; Voorhees, ClayThe ability to break even faster on new product projects is becoming increasingly critical for firms in fast-moving industries where continually reinvesting in research and development efforts matters greatly for survival. However, most research to date has focused on studying the impact of two primary innovation outcomes: sales and profits. The exclusive emphasis on sales and profit may be warranted for certain types of goods such as durable goods, but when examining the effects of new products in fast-moving consumer goods or in the entrepreneurial sphere, where cash to cash matters greatly for survival, it is critical for both researchers and practitioners to not only consider the profits and sales generated by the new product but also the time to breakeven. This paper develops a theoretical framework using the competency-based literature to examine the effects of innovation drivers (customer idea source, speed to market, product quality, and product newness) on breakeven time (BET) and project profits, and their subsequent impact on firm performance. A three-stage least square estimation method was employed using longitudinal data on 945 new product development projects and launches in the morning (breakfast) foods category. The results clearly pinpoint that for successful product innovation, managers need to consider the time taken to breakeven on new product development. Specifically, the results demonstrate that speed to market and product quality shorten BET, but customer idea source extends BET. Second, the analysis also empirically demonstrates that BET is an equally effective predictor of firm performance as project profits in the short run, but significantly a stronger predictor of firm performance in the long run (t + four years), suggesting that BET should be regarded as a superior leading indicator of firm performance versus product profitability for fast-moving consumer goods segment. This is an important finding that suggests firms that recoup their cash investments more quickly experience greater short-term and significantly more long-term success.Item New Wine from Old Grapes: Innovation in the Eco-Friendly B2C Space(Routledge, 2015) Chaudhuri, Malika; Calantone, Roger; Randhawa, PraneetDespite the upsurge in the need to develop eco-friendly products, few research studies have empirically examined consumers’ preferences for eco-friendly products. We use a choice-based, conjoint analysis method to estimate willingness to pay for alternative transportation fuels in the United States. Unleaded gasoline and ethanol (derived from corn or cellulosic biomass) are the alternative fuels considered in this study. We use a latent class model and introduce sociodemographic variables, such as age of consumers and state of residency, to identify consumer preference heterogeneity. The findings of this study hold important implications for both firms and policy makers. Furthermore, less-polluting fuels is a global problem; conjoint studies are easy to project cross-culturally, as the design and findings can be reexamined and replicated in many locales worldwide.Item The pursuit of counterfeited luxury: An examination of the negative side effects of close consumer–brand connections(Elsevier, 2015) Randhawa, Praneet; Calantone, Roger; Voorhees, ClayOver the past two decades, the counterfeiting industry has cost U.S. manufacturers over $200 billion. In this study, we extend current research on consumers' willingness to purchase counterfeit products by demonstrating that consumers' need to build their self-concept via selfbrand connection directly impact consumers' willingness to purchase counterfeits and these effects are moderated by value consciousness and openness to experience. As a result, our findings move beyond simple assessments of the impact of demographics and social norms to provide a deeper understanding of why and when consumers purchase counterfeit goods. The findings provide new insights that luxury brand managers could leverage to proactively combat counterfeiting and begin curtailing their losses due to the sale of fake goods.