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industry. A new construct, defined as “prospect’s self-recovery behavior,” is proposed to
explain the reasons why prospects do not switch and to deliberate on the underlying
consumption values that they are seeking. The conceptualization of the construct is discussed
and elaborated.
(7) How Competitors’ Actions Affect the Relationship between New Product Launch Speed
and Firm Performance in Multimarket Contact?
Combining the concept of multimarket contact with competitive dynamics, this study
proposes the conception of a new product in the marketing domain. It also examines the
implication behind the competitive actions of firms. Data from the Knowledge Management
Winner (KMW) database on four Taiwanese chain convenience stores are collected and
analyzed. The news related to competitive interactions among these companies in 2005 to
2012 is also collected for content analysis. The results indicate that (1) a negative
relationship exists between the degree of multimarket contact and new product launch speed,
(2) a positive relationship exists between new product launch speed and firm performance,
and (3) the number of competitor actions can strengthen the negative relationship between
the degree of multimarket contact and new product launch speed.