Sources of Market Pioneer Advantages in Consumer Goods Industries

Claes Fornell

630 citations0/0 files storedJournal of Marketing Research

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Firm Innovation and Growth Merger and Competition Analysis Consumer Market Behavior and Pricing

Abstract

In a broad cross section of consumer goods businesses, market pioneers generally have substantially higher market shares than late entrants. In fact, the empirical association between order of entry and market share is almost as strong as the association between market share and return on investment. The authors examine theoretical sources behind this relationship. The empirical results suggest that the higher pioneer shares are derived from firm-based superiority as well as from consumer information advantages. Nine hypotheses are developed and tested empirically. The results also indicate that order of market entry is a major determinant of market share.

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References

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1995The effect of introducing important incremental innovations on market share and business survival 1991Dual clocks: Entry order influences on incumbent and newcomer market share and survival when specialized assets retain their value 1988Order of entry and performance in new markets 2006Innovation, imitation, and new product performance: The case of China 1988Sources of Market Pioneer Advantages: The Case of Industrial Goods Industries 1998Late Mover Advantage: How Innovative Late Entrants Outsell Pioneers

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