Golder & Tellis (1993): Pioneer advantage: marketing logic or marketing legend?
13 important questions on Golder & Tellis (1993): Pioneer advantage: marketing logic or marketing legend?
Several studies have shown that pioneers have long-lived market share advantages, and first entrants often become market leaders. However, there are three major concerns. Which ones?
- Two of the main databases used in past research have a sampling bias from including only survivors
- The data relies on selfreports of single informants to classify pioneers, and did not collect multiple measures to assess reliability and validity
- The definition of pioneer in the database PIMS is inconsistent with the term’s use by researchers
What are the three objectives of the paper by Golder & Tellis (1993)?
- To estimate the rewards of pioneers after controlling for survival bias by studying successful and unsuccessful pioneers
- To demonstrate the use of a new method, historical analysis
- To provide an objective measure of the true pioneer or first entrant in each product category
Result: What is the failure rate of market pioneers? And in which product category is this higher, durable or non-durable goods?
- The failure of market pioneers is shown to be 47%.
- The failure rate is twice as high for durable than for non-durable goods, probably to more technological change in durable goods categories.
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Result: In how many % of the 36 categories are the market pioneers the current leaders?
Result: What is the average and median of maintained market leadership by market pioneers in years?
- Market pioneers maintained market leadership for an average of 12 years
- However the median period of leadership is only 5 years
Result: In how much of the 50 product categories is a long-lived market share leadership for pioneers supported?
There are two types of advantages for pioneers? Which two are those?
- Consumer-based advantages
- Benefits that can be derived from the way consumers first choose and then purchase the product.
- Product-based advantages
- Benefits derived from supply of product, and are based on concept of barriers to entry.
There are two types of advantages for pioneers? Which two are those?
- Consumer-based advantages
- Benefits that can be derived from the way consumers first choose and then purchase the product.
- Product-based advantages
- Benefits derived from supply of product, and are based on concept of barriers to entry.
Which method is used by Golder & Tellis (1993) and what does it entail?
Result: What are the results with regards to early leaders? In terms of:
- Current leaders (% of product categories)
- Failure rates
- Average market share
- Early leaders are currently leaders in more than half of the product categories
- have very low failure rates (8%), and
- have an average market share of 28%
Which method is used by Golder & Tellis (1993) and what does it entail?
What may be a reason for the success of early leaders?
What are the three objectives of the paper by Golder & Tellis (1993)?
- To estimate the rewards of pioneers after controlling for survival bias by studying successful and unsuccessful pioneers
- To demonstrate the use of a new method, historical analysis
- To provide an objective measure of the true pioneer or first entrant in each product category
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