Talay, M. Berk, Akdeniz, M. Billur, Obal, Michael, & Townsend, Janell (2019). Stock Market Reactions to New Product Launch in International Markets: The Moderating Role of Culture. Journal of International Marketing. https://doi.org/10.1177/1069031X19874789
This study examines the drivers of stock market reactions to a new product introduction in a foreign country, along with the moderating impact of the cultural context. Findings, based on a sample of 1,154 products in 34 product categories within consumer goods launched in 48 countries between 2011 and 2018, show that global launches of products with innovativeness and hedonism characteristics positively impact firm value. While national cultures that are individualistic, uncertainty avoidant, and indulgent strengthen the positive impact of hedonistic nature; the positive impact of innovativeness weakens in cultures with higher uncertainty avoidance, and strengthens in ones with higher indulgence. Marketers can use this research to determine what markets are most appropriate for specific types of new product launches as well as to defend new product launch actions and investments to top management and build a strategy around its future new product introductions abroad.
Webpage link: https://journals.sagepub.com/doi/abs/10.1177/1069031X19874789?journalCode=jiga
