Paulina Papastathopoulou

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.

Shopper characteristics, product and store choice criteria: a survey in the Greek grocery sector

Considers the brand and store choice behaviour of grocery shoppers and explores relationships among consumer characteristics, brand choice criteria and store selection criteria. A survey was carried out to collect data on demographic profiles and decision criteria of shoppers in the Greek grocery sector. The data were collected through in‐store, personal interviews and subsequently analysed using descriptive as well as optimal scaling methods. The data reveal asymmetric evaluations of choice criteria and some clear and interesting patterns regarding the two choice processes. In addition, several associations between brand and store preferences are identified and related to specific demographic characteristics of the consumers. The present work is a first attempt at addressing these issues in the grocery Greek market and leaves considerable room for further research.

Marketing communications and product performance: innovative vs non‐innovative new retail financial products

Reports the results of a research project into the marketing communications tools used during the launching of 100 new retail financial products – 58 non‐innovative and 42 innovative – and it is part of a broader study conducted on the development and launching practices of new financial products in Greece. It is revealed that innovative and non‐innovative products, generally, follow a different marketing communications approach. Innovative successful products are launched through the most integrated communications package followed by non‐innovative successful products, while innovative and non‐innovative unsuccessful products receive very limited communications support during their market introduction. Overall, three marketing communications tools are found to lead to enhanced performance, either for innovative or for non‐innovative products, namely intensive selling, below‐the‐line advertising, and telemarketing.

Assessing the importance of the development activities for successful new services: does innovativeness matter?

This article reports on the results of a research project into the development activities undertaken during the launch of 132 new financial services in Greece. According to the results, business analysis and marketing strategy formation as well as launch are the stages of the new service development process which influence the success of a new service irrespective, for the most part, of the degree of innovativeness that characterizes it. The significance of the other three stages of the development process varies depending the degree of innovativeness that characterizes the new service and the type of objective (financial or not) that management considers in order to evaluate its actual performance.

Managing the firms’ behaviour through market orientation development

While significant empirical work exists around the conceptualization of the notion of market orientation, as well as its relation to company performance, little empirical work has attempted to sketch how a firms behavior alters when the principles of market orientation are adopted. In this study, the authors investigate empirically the notion of market orientation continuum, according to which companies can be classified depending on the degree of adoption. Next, the behavioral implication of the companys position on the continuum is investigated. Moreover, the role of the companys market environment in explaining the degree of market orientation adoption and its classification along this continuum is also assessed. Finally, the behavioral consequences of this classification are considered.

Classifying enterprises on the basis of WWW use: a behavioral approach

Purpose – Research studies have started to appear in recent years about the use of world wide web (WWW) by organizations. In an attempt to shed more light into this issue, this study seeks to take a behavioral approach for classifying enterprises on the basis of WWW use. It aims to address two research questions: Can different organizational profiles reveal as a result of a classification scheme/taxonomy of enterprises based on WWW use? and If such a classification is possible, to what extent are the WWW usage profiles related to specific market, organizational and demographic characteristics?Design/methodology/approach – The sampling frame of the study consisted of the largest 1,250 firms in Greece in terms of sales turnover that had already adopted information and communication technologies. After three follow‐up contacts by telephone, e‐mail and fax the cooperation of 500 companies was secured (40 percent response rate). Data collection was carried out by a professional market research firm by means of...

Successful new‐to‐the‐market versus “me‐too” retail financial services: The influential role of marketing, sales, EDP/systems and operations

Purpose – The purpose of this paper is to explore the role of marketing, sales, EDP/systems and operations in the ultimate success of new‐to‐the‐market vs “me‐too” retail financial services.Design/methodology/approach – To collect the data, the “dropping off” method was followed using a self‐administered questionnaire. Respondents were new service development project leaders. The unit of analysis was the service innovation project. After two follow‐up contacts, 114 usable questionnaires were returned from 64 companies, yielding a company response rate of 76 per cent and a project response rate of 68 per cent.Findings – There are significant differences in the involvement of marketing in the stages of business analysis and marketing strategy, technical development, testing and launching, and the involvement of EDP/systems during technical development between “me‐too” and new‐to‐the‐market retail financial services. Further, in the case of new‐to‐the‐market projects, the involvement of marketing and sales p...

The service elimination decision‐making during the service life cycle: Some pilot empirical evidence

Purpose – The paper aims to offer a preliminary insight into the issue of whether service providers eliminate their offerings in various stages of their life cycle, and if so, whether elimination decision‐making differs depending on the services life cycle stage.Design/methodology/approach – Data were secured by means of a structured questionnaire which was completed through personal interviews. Respondents answered all questions having a recently eliminated service in mind. The initial calls and follow‐up efforts generated 164 usable responses (49.8 per cent response rate).Findings – A service may be eliminated from a service providers portfolio in any stage of its life cycle. Further, in terms of precipitating circumstances, evaluation factors and elimination strategies, the service elimination process differs depending on the stage of the service life cycle that the elimination decision is taken.Practical implications – The most important implication is service providers eliminate services not only a...

Uncovering the keys to successful service elimination: project ServDrop

Purpose – The reason for this study is to help increase understanding concerning the service elimination decision and implementation since it remains a highly under‐investigated topic. In doing so, an empirical investigation of the successful vs not‐so‐successful elimination practices from eight service industries were examined.Design/methodology/approach – The data were secured by means of a lengthy and structured questionnaire, instrumented through personal interviews as part of a much wider examination of the service elimination decision‐making process in Greece entitled “Project ServDrop”. The companies included in the sample were drawn from a population of 1,964 service companies listed under selected service sectors, namely, insurance, banking, advertising, professional services, freight forwarding, marine, telecommunications and lodging.Findings – The analysis reveals that treating the elimination as a strategic issue, considering how resources can be more effectively re‐allocated, paying attention...

Impacts of Sustainability: A Multi-Level Synthesis and Research Agenda

The deterioration of environmental and societal conditions worldwide has initiated extensive discussions on what has been coined as sustainability and to what extent the relevant actions constitute an imperative or alternatively disorientate businesses for their main scope. Despite the attention given on this topic, there exists a noticeable lack of empirical studies concerning how sustainability affects the economy and society. Therefore, it seems timely to set a research agenda that would focus on the examination of its impact on three levels, namely micro-level (i.e. individual social groups), meso-level (i.e. business) and macro-level (i.e. law, politics, non-governmental and public organizations). Equally important is also the understanding of how antecedents and moderators shape the impacts of sustainability initiatives at these levels. Based on an interdisciplinary conceptual framework, the article provides a synthesis of the extant literature and suggests avenues for future research on this issue.