New product announcements as market signals: A content analysis in the DRAM chip industry

Abstract

New-product announcements (NPAs) have considerable effects on competitors in industrial markets. Several studies have shown that the perceived threat caused by an NPA may trigger severe competitive reactions. Yet, it is still unclear how the perception of threat by competitors is related to the specific content of the announcement. This study explores the actual content of NPAs observed in a particular market. This is done through a multi-year content analysis of new-product announcements in the DRAM memory chip industry. The study analyzes patterns in the occurrence of attributes and demonstrates how firm strategy affects NPA content. Findings from this study provide important insights for managers about the design of NPAs. It also triggers further research on the use of NPAs in competitive industrial markets.