George J. Avlonitis

An empirically based typology of product innovativeness for new financial services: success and failure scenarios

Abstract During the last decade, an increasing number of studies have been concerned with the factors that lead to new service success. Quite a few studies, however, have examined the role of product innovativeness in new service development and performance. The present article aims to test empirically a widespread, yet under-researched argument, according to which, different innovative types may be associated with different development patterns and performance outcomes. On the basis of a detailed literature review we designed the conceptual framework for the present study. More specifically, we propose that the performance outcome of a new service is the result of the development process followed, which, in turn, is influenced by the innovativeness of the new service. The development process is examined through three blocks of variables, namely new service development activities (i.e., the “what” component), process formality (i.e., the “how” component) and cross-functional involvement (i.e., the “who” component). Performance is viewed in relation to both financial and non-financial outcomes. The different dimensions of innovativeness form the basis of our classification scheme. To collect the data, we followed the “dropping off” method. That is, we handed in self-administered questionnaires to participants and, a picking-up appointment was set. Respondents were NSD project leaders who were asked to select two financial services, one successful and one unsuccessful, that they had developed within the last three years and reply to all questions relating to the development and launching of these services. Overall, 84 financial companies participated in the study, providing data for 132 new financial services (80 successes and 52 failures) developed and marketed in Greece. Data analysis revealed that six distinct service innovativeness types exist. They can be represented in the form of a continuum depending on the degree of innovativeness that characterizes each type. At the most innovative extreme of the continuum we find the new-to-the-market services followed by new-to-the-company services, new delivery processes, service modifications, service line extensions, while at the least innovative end service repositionings are placed. These six types are found to be associated with different development patterns in terms of activities, formality and cross-functional involvement as well as performance outcomes. Interestingly enough, our data suggest an almost inverted U-shaped relationship between the degree of innovativeness of a new financial service and financial performance. On the other hand, the major service innovations make the strongest contribution on non-financial performance, while “me-too” offerings are the least successful ones. The study has a number of research contributions as well as implications for managers involved in new service development in the financial services industry. The conceptualization of the continuum of innovativeness helps disclosing the critical points of the NSD process and its structuring which, depending of the type of new service and the degree of innovativeness that characterizes it, ensures that the management’s objectives regarding the performance of the new service are attained.

Marketing orientation and its determinants : an empirical analysis

While a strong association between Marketing Orientation development and company performance has been established, the understanding of the Marketing Orientation remains unclear since some studies have suggested a philosophical nature for Marketing Orientation and some other studies concluded that Marketing Orientation represents a behavioural notion. As a result of this antithesis, research has not proceeded in the investigation on the factors that determine the degree of Marketing Orientation development. Shows that Marketing Orientation should be conceptualised synthetically since it represents the integration of a certain culture with specific behaviour. Closely examines the major determinants of Marketing Orientation development. Although exploratory in nature, suggests that Marketing Orientation development is determined by company‐specific, as well as by market‐specific factors with the former having a facilitating effect and the latter a coercive effect.

Marketing orientation and company performance: Industrial vs. consumer goods companies

Marketing orientation, still an intriguing concept for many, carries the pledge of superior company performance through the satisfaction of customers needs. This article draws conclusions from an empirical investigation showing that this relationship does really exist and, in the case of industrial markets, building a marketing orientation it is indeed a significant contributor to the companys performance.

The Impact of Internet Use on Business-to-Business Marketing: Examples from American and European Companies

Abstract The Internet has been the favorable theme for numerous studies and reports, during the last decade. Yet, there is a lack of systematic empirical evidence regarding the marketing activities that are affected by the use of the Internet, and their consequent performance outcomes. In this article, we document the role of the Internet in business-to-business marketing and identify market-oriented activities that are affected by the use intensity of the Internet. Using a sample of 130 industrial businesses, we found a substantial positive effect of the use of the Internet on sales management activities, market-oriented product management activities, and sales performance and efficiency. The results of this study also stress the central role of the sales force in the successful implementation of the Internet marketing strategies within organizations.

Assessing the Innovativeness of Organizations and its Antecedents: Project Innovstrat

Presents research which: introduces a new multidimensional concept of the innovativeness of organizations; develops an approach for its measurement involving a cross‐section of innovations adopted by multiple organizations in multiple industries; identifies different economic, organizational/managerial, industry specific and governmental/legislation and infrastructure factors which influence the various dimensions of the innovativeness of organizations; and suggests how this alternative approach can be used for the better understanding of the concept of the innovativeness of organizations and its applied context within the marketing discipline.

Pricing objectives and pricing methods in the services sector

Purpose – The purpose of this research paper is to explore the pricing objectives that service companies pursue along with the pricing methods that they adopt in order to set their prices.Design/methodology/approach – An extensive review of the literature revealed the complete lack of any previous work aiming to investigate the potential association between these two important elements of a companys pricing strategy. Thus, the value of the paper lies in the fact that it presents the first attempt to examine this issue empirically. In order to achieve the research objectives, data were collected from 170 companies operating in six different services sectors in Greece through personal interviews.Findings – The findings of the study reveal that the objectives, which are pursued, are fundamentally qualitative rather than quantitative in their nature with a particular emphasis given on the companies’ customers. However, the pricing methods, which are adopted by the majority of the companies, refer to the trad...

Product innovativeness and performance: a focus on SMEs

Purpose – The aim of this paper is to classify firms according to dimensions of product innovativeness (PI) and identify differences in performance on the product and the firm basis in the context of SMEs.Design/methodology/approach – To answer the questions this empirical study raises, a sample of 128 SMEs is clustered on the basis of the PI construct. After validating the clusters, an analysis of variance is performed to detect differences, if any, across performance measures on PI profiles of SMEs.Findings – This paper provides evidence in support of three groups featuring different levels of PI, namely the straight imitators (low PI), the product innovators (high PI) and the concept innovators (medium PI). Further, it shows that these groups demonstrate differences in their performance potential at the product but not at the firm level.Research limitations/implications – This paper refers to an empirical study of SMEs in a European Union (EU) member state since 1981, namely Greece, which is far from r...

Product elimination decision making: Does formality matter?

This research presents (a) a methodological framework for examining formality as an ingredient of a companys product elimination process, and (b) some exploratory findings showing the manner in wh...

Marketing Approaches in Bulgaria

Describes the results of a survey of Bulgarian companies as part of a larger project funded by The European Commission. Investigates the marketing attitudes and approaches of Bulgarian companies using a mailed questionnaire based on a set of preliminary in‐depth interviews and analyses the results using a cluster analysis. Results show the existence of four clusters: the first, where marketing is virtually non‐existent; the second and largest cluster, where companies are primarily production oriented; the third, where companies are primarily sales oriented; and the fourth, where there is full marketing implementation. Compares these Bulgarian clusters with those found in the UK, and indicates that Bulgarian companies have made little progress towards full marketing implementation. Explores the barriers to the adoption of marketing.

Market orientation development: a comparison of industrial vs consumer goods companies

While significant empirical work exists around the conceptualization of the notion of market orientation (MO), as well as its relation to company performance, little empirical work has attempted to depict the actual steps a company has to take in order to increase its adaptability to market situation and, thus become market oriented. Furthermore, no empirical work has attempted so far to investigate the degree of MO between companies producing consumer goods vs companies producing industrial goods. By examining a number of research propositions, this paper attempts to investigate the marketing practices of consumer goods producers vis‐a‐vis the practices of companies that participate in industrial markets and to discriminate industrial from consumer goods companies based on their marketing practices and MO adoption profile.