Successive product generations: financial implications of industry release rhythm alignment

  • Torsten BornemannEmail author
  • Cornelia Hattula
  • Stefan Hattula
Original Empirical Research


A central question for firms releasing successive generations of a product is whether they should pursue a market-driven approach and align own product releases to existing industry-level patterns. While an alignment with industry patterns enables firms to capitalize on general market receptivity, it may also entail dilution and competitive interference effects. Using data on the consumer electronics and automotive industries, we show that the effectiveness of such alignment depends on two additional timing-related decisions: the firm’s release regularity for successive product generations and its preannouncement timing. Firms benefit from alignment to the industry only if they release successive generations in a regular manner (to create anticipation) and refrain from early preannouncements (to avoid competitive counteraction). For all other combinations of release regularity and preannouncement timing, not aligning to the industry rhythm leads to higher levels of firm performance. Taken together, our findings enable a nuanced view of the interplay of timing-related launch decisions that provides actionable guidance for managers.


Successive product generations Launch timing strategy Industry release rhythm alignment Release regularity New product preannouncements 



The authors thank the entire JAMS review team for their constructive and insightful recommendations throughout the whole process. Moreover, the authors thank Johannes Hattula for his helpfulcomments and suggestions for improvement.


  1. Aiken, L. S., & West, S. G. (1998). Multiple regression: Testing and interpreting interactions. Newbury Park: Sage.Google Scholar
  2. Axarloglou, K. (2003). The cyclicality of new product introductions. Journal of Business, 76(1), 29–48.CrossRefGoogle Scholar
  3. Bahadir, S. C., Bharadwaj, S. G., & Srivastava, R. K. (2008). Financial value of brands in mergers and acquisitions: Is value in the eye of the beholder? Journal of Marketing, 72(6), 49–64.CrossRefGoogle Scholar
  4. Banerjee, S., & Soberman, D. A. (2013). Product development capability and marketing strategy for new durable products. International Journal of Research in Marketing, 30(3), 276–291.CrossRefGoogle Scholar
  5. Baumol, W. J. (1959). Business behavior, value and growth. New York: Macmillan.Google Scholar
  6. Bayus, B. L., Erickson, G., & Jacobson, R. (2003). The financial rewards of new product introductions in the personal computer industry. Management Science, 49(2), 197–210.CrossRefGoogle Scholar
  7. Bertini, M., Gourville, J., & Ofek, E. (2011). When the name is the game. Business Strategy Review, 22(3), 50–55.CrossRefGoogle Scholar
  8. Boone, D. S., Lemon, K. N., & Staelin, R. (2001). The impact of firm introductory strategies on consumers' perceptions of future product introduction and purchase decisions. Journal of Product Innovation Management, 18(2), 96–109.CrossRefGoogle Scholar
  9. Brexendorf, T. O., Bayus, B., & Keller, K. L. (2015). Understanding the interplay between brand and innovation management: Findings and future research directions. Journal of the Academy of Marketing Science, 43(5), 548–557.CrossRefGoogle Scholar
  10. Brown, S. L., & Eisenhardt, K. M. (1997). The art of continuous change: Linking complexity theory and time-paced evolution in relentlessly shifting organizations. Administrative Science Quarterly, 42(1), 1–34.CrossRefGoogle Scholar
  11. Burke, R. R., & Srull, T. K. (1988). Competitive interference and consumer memory for advertising. Journal of Consumer Research, 15(1), 55–68.CrossRefGoogle Scholar
  12. Calantone, R., & Di Benedetto, C. A. (2012). The role of lean launch execution and launch timing on new product performance. Journal of the Academy of Marketing Science, 40(4), 526–538.CrossRefGoogle Scholar
  13. Capon, N., Farley, J. U., & Hoenig, S. (1990). Determinants of financial performance: A meta-analysis. Management Science, 36(10), 1143–1159.CrossRefGoogle Scholar
  14. Carhart, M. M. (1997). On persistence in mutual fund performance. Journal of Finance, 52(1), 57–82.CrossRefGoogle Scholar
  15. Carrillo, J. E. (2005). Industry clockspeed and the pace of new product development. Production & Operations Management, 14(2), 125–141.CrossRefGoogle Scholar
  16. Dacko, S. G., Liu, B. S., Sudharshan, D., & Furrer, O. (2008). Dynamic capabilities to match multiple product generations and market rhythm. European Journal of Innovation Management, 11(4), 441–471.CrossRefGoogle Scholar
  17. Danaher, P. J., Bonfrer, A., & Dhar, S. (2008). The effect of competitive advertising interference on sales for packaged goods. Journal of Marketing Research, 45(2), 211–225.CrossRefGoogle Scholar
  18. Druehl, C. T., Schmidt, G. M., & Souza, G. C. (2009). The optimal pace of product updates. European Journal of Operational Research, 192(2), 621–633.CrossRefGoogle Scholar
  19. Dunn, R., Reader, S., & Wrigley, N. (1983). An investigation of the assumptions of the NBD model as applied to purchasing at individual stores. Journal of the Royal Statistical Society. Series C (Applied Statistics), 32(3), 249–259.Google Scholar
  20. Ebbes, P., Papies, D., & van Heerde, H. J. (2011). The sense and non-sense of holdout sample validation in the presence of endogeneity. Marketing Science, 30(6), 1115–1122.CrossRefGoogle Scholar
  21. Eisenhardt, K. M., & Brown, S. L. (1998). Time pacing: Competing in markets that won't stand still. Harvard Business Review, 76(2), 59–69.Google Scholar
  22. Essens, P. J., & Povel, D.-J. (1985). Metrical and nonmetrical representations of temporal patterns. Perception & Psychophysics, 37(1), 1–7.CrossRefGoogle Scholar
  23. Fiegenbaum, A., & Karnani, A. (1991). Output flexibility—A competitive advantage for small firms. Strategic Management Journal, 12(2), 101–114.CrossRefGoogle Scholar
  24. Fitzsimons, G. J. (2008). Death to dichotomizing. Journal of Consumer Research, 35(1), 5–8.CrossRefGoogle Scholar
  25. Gijsenberg, M. J. (2017). Riding the waves: Revealing the impact of intrayear category demand cycles on advertising and pricing effectiveness. Journal of Marketing Research, 54(2), 171–186.CrossRefGoogle Scholar
  26. Hair Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: A global perspective. Upper Saddle River: Pearson/Prentice Hall.Google Scholar
  27. Hashai, N., Kafouros, M., & Buckley, P. J. (2018). The performance implications of speed, regularity, and duration in alliance portfolio expansion. Journal of Management, 44(2), 707–731.CrossRefGoogle Scholar
  28. Hendricks, K. B., & Singhal, V. R. (1997). Does implementing an effective TQM program actually improve operating performance? Empirical evidence from firms that have won quality awards. Management Science, 43(9), 1258–1274.CrossRefGoogle Scholar
  29. Hultink, E. J., Griffin, A., Robben, H. S. J., & Hart, S. (1998). In search of generic launch strategies for new products. International Journal of Research in Marketing, 15(3), 269–285.CrossRefGoogle Scholar
  30. Investopia. 2015a. Are there significant seasonal patterns in the electronics sector? Available at Accessed 15 September 2019.
  31. Investopia. 2015b. How important are seasonal trends in the automotive sector? Available at Accessed 15 September 2019.
  32. Jain, B. A., & Kini, O. (1994). The post-issue operating performance of IPO firms. Journal of Finance, 49(5), 1699–1726.CrossRefGoogle Scholar
  33. Judge, G. G., Hill, R. C., Griffiths, W., Lutkepohl, H., & Tsoung-Chao, L. (1998). Introduction to the theory and practice of econometrics. Hoboken: John Wiley & Sons.Google Scholar
  34. Kerin, R. A., & Sethuraman, R. (1998). Exploring the brand value-shareholder value nexus for consumer goods companies. Journal of the Academy of Marketing Science, 26(4), 260–273.CrossRefGoogle Scholar
  35. Kohli, C. (1999). Signaling new product introductions: A framework explaining the timing of preannouncements. Journal of Business Research, 46(1), 45–56.CrossRefGoogle Scholar
  36. Koku, P. S., Jagpal, H. S., & Viswanath, P. V. (1997). The effect of new product announcements and preannouncements on stock price. Journal of Market-Focused Management, 2(2), 183–199.CrossRefGoogle Scholar
  37. Lee, Y., & O'Connor, G. C. (2003). The impact of communication strategy on launching new products: The moderating role of product innovativeness. Journal of Product Innovation Management, 20(1), 4–21.CrossRefGoogle Scholar
  38. Lilly, B., & Walters, R. (1997). Toward a model of new product preannouncement timing. Journal of Product Innovation Management, 14(1), 4–20.CrossRefGoogle Scholar
  39. Lobel, I., Patel, J., Vulcano, G., & Zhang, J. (2016). Optimizing product launches in the presence of strategic consumers. Management Science, 62(6), 1778–1799.CrossRefGoogle Scholar
  40. McKinsey. 2006. Reinventing innovation at consumer goods companies. Available at Accessed 15 September 2019.
  41. Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340–363.CrossRefGoogle Scholar
  42. Nault, B. R., & Vandenbosch, M. B. (1996). Eating your own lunch: Protection through preemption. Organization Science, 7(3), 342–358.CrossRefGoogle Scholar
  43. Pacheco-de-Almeida, G., Hawk, A., & Yeung, B. (2015). The right speed and its value. Strategic Management Journal, 36(2), 159–176.CrossRefGoogle Scholar
  44. Pae, J. H., & Lehmann, D. R. (2003). Multigeneration innovation diffusion: The impact of intergeneration time. Journal of the Academy of Marketing Science, 31(1), 36–45.CrossRefGoogle Scholar
  45. Park, S., & Gupta, S. (2012). Handling endogenous regressors by joint estimation using copulas. Marketing Science, 31(4), 567–586.CrossRefGoogle Scholar
  46. Pauwels, K., Silva-Risso, J., Srinivasan, S., & Hanssens, D. M. (2004). New products, sales promotions, and firm value: The case of the automobile industry. Journal of Marketing, 68(4), 142–156.CrossRefGoogle Scholar
  47. Pérez-Nordtvedt, L., Payne, G. T., Short, J. C., & Kedia, B. L. (2008). An entrainment-based model of temporal organizational fit, misfit, and performance. Organization Science, 19(5), 785–801.CrossRefGoogle Scholar
  48. Pogue, D. 2014. Ces: Does the consumer technology show have a future? Available at Accessed 15 September 2019.
  49. Porac, J. F., Thomas, H., & Baden-Fuller, C. (1989). Competitive groups as cognitive communities: The case of scottish knitwear manufacturers. Journal of Management Studies, 26(4), 397–416.CrossRefGoogle Scholar
  50. Radas, S., & Shugan, S. M. (1998). Seasonal marketing and timing new product introductions. Journal of Marketing Research, 35(3), 296–315.CrossRefGoogle Scholar
  51. Raithel, S., Sarstedt, M., Scharf, S., & Schwaiger, M. (2012). On the value relevance of customer satisfaction. Multiple drivers and multiple markets. Journal of the Academy of Marketing Science, 40(4), 509–525.CrossRefGoogle Scholar
  52. Ramani, G., & Kumar, V. (2008). Interaction orientation and firm performance. Journal of Marketing, 72(1), 27–45.CrossRefGoogle Scholar
  53. Rappaport, A. (1986). Creating shareholder value: The new standard for business performance. New York: Free press.Google Scholar
  54. Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718–804.CrossRefGoogle Scholar
  55. Schatzel, K., & Calantone, R. (2006). Creating market anticipation: An exploratory examination of the effect of preannouncement behavior on a new product's launch. Journal of the Academy of Marketing Science, 34(3), 357–366.CrossRefGoogle Scholar
  56. Sehgal, S., & Levitan, D. 2018. How tech companies can fight ‘tech product fatigue. Available at Accessed 15 September 2019.
  57. Shah, B., & Greene, J. 2012. Marketing through surprise and secrecy: Lessons from ‘watch the throne’. Available at Accessed 15 September 2019.
  58. Sharma, A., Saboo, A. R., & Kumar, V. (2018). Investigating the influence of characteristics of the new product introduction process on firm value: The case of the pharmaceutical industry. Journal of Marketing, 82(5), 66–85.CrossRefGoogle Scholar
  59. Shaver, J. M. (1998). Accounting for endogeneity when assessing strategy performance: Does entry mode choice affect FDI survival? Management Science, 44(4), 571–585.CrossRefGoogle Scholar
  60. Shi, W., & Prescott, J. E. (2012). Rhythm and entrainment of acquisition and alliance initiatives and firm performance: A temporal perspective. Organization Studies, 33(10), 1281–1310.CrossRefGoogle Scholar
  61. Shugan, S. M. (1989). Product assortment in a triopoly. Management Science, 35(3), 304–320.CrossRefGoogle Scholar
  62. Simon, C. J., & Sullivan, M. W. (1993). The measurement and determinants of brand equity: A financial approach. Marketing Science, 12(1), 28–52.CrossRefGoogle Scholar
  63. Simon, H. A., & Kotovsky, K. (1963). Human acquisition of concepts for sequential patterns. Psychological Review, 70(6), 534–546.CrossRefGoogle Scholar
  64. Smith, T. M., Gopalakrishna, S., & Smith, P. M. (2004). The complementary effect of trade shows on personal selling. International Journal of Research in Marketing, 21(1), 61–76.CrossRefGoogle Scholar
  65. Sorescu, A., Shankar, V., & Kushwaha, T. (2007). New product preannouncements and shareholder value: Don't make promises you can't keep. Journal of Marketing Research, 44(3), 468–489.CrossRefGoogle Scholar
  66. Sorescu, A., Warren, N. L., & Ertekin, L. (2017). Event study methodology in the marketing literature: An overview. Journal of the Academy of Marketing Science, 45(2), 186–207.CrossRefGoogle Scholar
  67. Souza, G. C., Bayus, B. L., & Wagner, H. M. (2004). New-product strategy and industry clockspeed. Management Science, 50(4), 537–549.CrossRefGoogle Scholar
  68. Srivastava, R. K., Shervani, T. A., & Fahey, L. (1998). Market-based assets and shareholder value: A framework for analysis. Journal of Marketing, 62(1), 2–18.CrossRefGoogle Scholar
  69. Srivastava, R. K., Shervani, T. A., & Fahey, L. (1999). Marketing, business processes and shareholder value: An organizationally embedded view of marketing activities and the discipline of marketing. Journal of Marketing, 63(Special Issue), 168–179.CrossRefGoogle Scholar
  70. Statista. 2019a. Consumer electronics sales as percentage of total retail e-commerce sales in the united states from 2017 to 2023. Available at Accessed 15 September 2019.
  71. Statista. 2019b. Iphone sales share of apple's total revenue worldwide from 1st quarter 2009 to 2nd quarter 2019. Available at Accessed 15 September 2019.
  72. Statista. 2019c. Share of automobiles and parts sales of total U.S. E-retail sales from 2013 to 2018. Available at Accessed 15 September 2019.
  73. Sterman, J. D., Repenning, N. P., & Kofman, F. (1997). Unanticipated side effects of successful quality programs: Exploring a paradox of organizational improvement. Management Science, 43(4), 503–521.CrossRefGoogle Scholar
  74. Strebel, J., O'Donnell, K., & Myers, J. G. (2004). Exploring the connection between frustration and consumer choice behavior in a dynamic decision environment. Psychology & Marketing, 21(12), 1059–1076.CrossRefGoogle Scholar
  75. Su, M., & Rao, V. R. (2010). New product preannouncement as a signaling strategy: An audience-specific review and analysis. Journal of Product Innovation Management, 27(5), 658–672.CrossRefGoogle Scholar
  76. Talay, M. B., Akdeniz, M. B., & Kirca, A. H. (2017). When do the stock market returns to new product preannouncements predict product performance? Empirical evidence from the U.S. automotive industry. Journal of the Academy of Marketing Science, 45(4), 513–533.CrossRefGoogle Scholar
  77. Thom, H. C. S. (1968). Direct and inverse tables of the gamma distribution. Silver Spring: Environmental Data Service.Google Scholar
  78. Turner, S. F., Mitchell, W., & Bettis, R. A. (2013). Strategic momentum: How experience shapes temporal consistency of ongoing innovation. Journal of Management, 39(7), 1855–1890.CrossRefGoogle Scholar
  79. Vermeulen, F., & Barkema, H. (2001). Learning through acquisitions. Academy of Management Journal, 44(3), 457–476.Google Scholar
  80. Vermeulen, F., & Barkema, H. (2002). Pace, rhythm, and scope: Process dependence in building a profitable multinational corporation. Strategic Management Journal, 23(7), 637–653.CrossRefGoogle Scholar
  81. Villas-Boas, J. M. (1993). Predicting advertising pulsing policies in an oligopoly: A model and empirical test. Marketing Science, 12(1), 88–102.CrossRefGoogle Scholar
  82. Wade, J. 2016. Why the consumer electronics show is dead - for product launches. Available at Accessed 15 September 2019.
  83. Webb, D., & Pettigrew, A. (1999). The temporal development of strategy: Patterns in the u.K. insurance industry. Organization Science, 10(5), 601–621.CrossRefGoogle Scholar
  84. Wilcox, D. W. (1992). The construction of U.S. consumption data: Some facts and their implications for empirical work. American Economic Review, 82(4), 922–941.Google Scholar
  85. Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data. Cambridge: MIT Press.Google Scholar
  86. Yan, M., & Stuart, M. 2019. Apple forever changed the biggest tech event of the year by not showing up. Available at Accessed 15 September 2019.
  87. Yang, C.-L., Chiang, M.-H., & Chen, C.-W. (2014). The relationship between information content and institutional investors: Evidence from new product preannouncements. Review of Managerial Science, 8(3), 405–418.CrossRefGoogle Scholar
  88. Zhu, R., Chen, X., & Dasgupta, S. (2008). Can trade-ins hurt you? Exploring the effect of a trade-in on consumers' willingness to pay for a new product. Journal of Marketing Research, 45(2), 159–170.CrossRefGoogle Scholar

Copyright information

© Academy of Marketing Science 2019

Authors and Affiliations

  1. 1.Department of MarketingGoethe University FrankfurtFrankfurt am MainGermany
  2. 2.Marketing, Sales, Tourism & Sports DepartmentISM International School of ManagementStuttgartGermany
  3. 3.Marketing DepartmentUniversity of StuttgartStuttgartGermany

Personalised recommendations