International Takeoff of New Products:
Role of Economics, Culture and Country
by Gerard J. Tellis,
Stefan Stremersch and Eden Yin
paper is forthcoming in Marketing
Sales takeoff is vitally important
for the management of new products.
Limited prior research on this
phenomenon covers only the US.
This study addresses
the following questions about takeoff in Europe:
(1) Does takeoff occur as distinctly in other countries, as it does in the
(2) Do different
categories and countries have consistently
economic and cultural factors explain the inter-country
(4) Should managers
use a sprinkler or waterfall strategy
for the introduction of new products
We gathered data on 137 new products across 10 categories and 16 European countries.
We adapted the threshold rule for identifying takeoff (Golder and Tellis
1997) to this multinational context. We specify a parametric hazard model
to answer the questions above.
The major results
are as follows:
(1) Sales of most
new products display a distinct takeoff
in various European countries, at an
average of 6 years after introduction.
(2) The time-to-takeoff varies substantially across countries and categories.
It is four times shorter for entertainment products than for kitchen & laundry
appliances. It is almost half as long in Scandinavian countries as in Mediterranean
(3) While culture partially explains inter-country differences in time-to-takeoff,
economic factors are neither strong nor robust explanatory factors.
(4) These results suggest distinct advantages to a waterfall strategy for introducing
products in international markets.
Keywords: international new product growth, new product takeoff, new product
growth, international diffusion, diffusion of innovations.
Click HERE for
Full Paper in PDF format
J. Tellis, Marshall School of Business,
the University of Southern California.
PO Box 90089-1421,
Los Angeles, California, USA. email@example.com
Stefan Stremersch, Erasmus University
Rotterdam (room H15-15). PO Box 1738,
Burg. Oudlaan 50, 3000 DR Rotterdam, The
Eden Yin, Judge Institute, Cambridge
University, Trumpington Street, Cambridge