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. In this study we explore the actual content of NPAs observed in a particular market. We do this through a multi-year content analysis of new-product announcements in the DRAM memory chip industry. We analyze patterns in the occurrence of attributes and demonstrate 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.competition;innovation;market signals;new product announcement;semiconductors