Patterns of market research timing for new industrial products

Abstract

The importance of market research to new industrial product ventures has been widely noted, and some evidence has suggested that failure of managers to carry out effective research can increase the probability of new product failure. In planning for market research, a problem facing managers is when market research should be done during the new product development process. In this study, patterns of timing of market research resource expenditures in 112 industrial new product situations were measured, and differences in these patterns related to seven major situational characteristics, marketing task similarity, distribution complexity, competitive advantage, buyer risk, development complexity, project downsides and project payoffs. Data analysis using MDA revealed significant differences between the patterns of research timing in different new product situations, and related these differences most strongly to marketing task similarity, competitive advantage, and buyer risk. The findings have important implications for managers involved in planning market research activities and resource allocations in new industrial product situations.