The relative importance of time and dollar values in new product introduction decisions

José Antonio Rosa, William J. Qualls

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates managerial sensitivity to timing differences in new product introduction decisions. Using a case scenario as the research setting, the study finds that in managerial decisions involving a choice between two-attribute alternatives (dollar value and time), respondents shifted their emphasis between attributes when they were personally affected by the decision outcome. Specifically, it was found that an additive constant manipulation (adding a constant to the dollar amount of each alternative) caused respondents to place more emphasis on the time attribute, and a multiplicative constant manipulation (multiplying the dollar amount of each alternative by a constant) caused them to place more emphasis on the dollar-value attribute. The study asks 108 subjects to assume the role of product manager in a case scenario and choose from among three two-attribute alternatives proposed by the case. The personal relevance of the decision was manipulated by telling respondents that the CEO in the decision scenario had stated publicly that the career of the decision maker would be (would not be) affected. The results show that the additive constant and multiplicative constant effects were only found when the decision outcomes would affect the respondents' career.

Original languageEnglish (US)
Pages (from-to)149-158
Number of pages10
JournalMarketing Letters
Volume6
Issue number2
DOIs
StatePublished - Mar 1 1995

Keywords

  • discounted utility
  • integration principle
  • intertemporal decisions

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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