Prior Industry Experience, Product Attributes and Online Customer Review on New Product Sales: TV Products on Chinese Online Shopping

이전사업경험, 제품속성 및 온라인 고객평가가 제품 매출성과에 미치는 영향: 중국 온라인 쇼핑몰내 TV제품 중심으로

  • Received : 2015.10.26
  • Accepted : 2016.02.29
  • Published : 2016.03.31


This paper examines the effects of prior industry experience, new product attributes and online customer review on new product sales. Different from prior researches on the volume and valence of customer review on online shopping, this paper investigated multiple factors on new product sales in online shopping mall. Based on 407 TV new products in China online shopping mall, we investigated the relationships of kew factors with new products sales. New products of Incumbent TV manufacturers outsell those of new entrants in TV market. Low initial price and low level of discount rate have positive relationships with new product sales. Technological superiority has positive effect on new product sales but the adoptions of new technological functions show different effects on sales. The volume of online consumer review also has positive relationship with new product sales. This paper suggest some theoretical and practical implications and future research directions.


Supported by : 강원대학교


  1. 까오밍원 (2014), "중국 온라인 TV시장에서 중국기업과 해외기업의 경쟁과 성과 비교", 강원대학교 일반대학원 경영학과 석사학위논문.
  2. 김귀훈.안충현.홍진우 (2011), "스마트TV 기술 및 표준화 동향", 전자통신동향분석, 제26권 제3호, pp. 37-49.
  3. 김도관.신성윤.진찬용 (2013), "기술 성장 및 대체 곡선 관점에서의 CES 출품 Digital TV의 특성 분석", 한국정보통신학회논문지, 제17권 제6호, pp. 1336-1341.
  4. Alba, J., J. Lynch, B. Weitz, C. Janiszewski, R. Lutz, A. Sawyer, and S. Wood (1997), "Interactive Home Shopping: Incentives for Consumers, Retailers, and Manufacturers to Participate in Electronic Marketplaces", Journal of Marketing, Vol. 61, No. 3, pp. 38-53.
  5. Ansari, S. S. and P. Krop (2012), "Incumbent Performance in the Face of a Radical Innovation: Towards a Framework for Incumbent Challenger Dynamics", Research Policy, Vol. 41, No. 8, pp. 1357-1374.
  6. Archak, N., A. Ghose, and P. G. Ipeirotis (2011), "Deriving the Pricing Power of Product Features by Mining Consumer Reviews", Management Science, Vol. 57, No. 8, pp. 1485-1509.
  7. Bakos, J. Y. (1997), "Reducing Buyer Search Costs: Implications for Electronic Marketplaces", Management Science, Vol. 43, No. 12, pp. 1676-1708.
  8. Benner, M. J. (2007), "The Incumbent Discount: Stock Market Categories and Response to Radical Technological Change", Academy of Management Review, Vol. 32, No. 3, pp. 703-720.
  9. Benner, M. J. and M. Tripsas (2012), "The Influence of Prior Industry Affiliation on Framing in Nascent Industries: The Evolution of Digital Cameras", Strategic Management Journal, Vol. 33, No. 3, pp. 277-302.
  10. Bergek, A., C. Berggren, T. Magnusson, and M. Hobday (2013), "Technological Discontinuities and the Challenge for Incumbent Firms: Destruction, Disruption or Creative Accumulation?", Research Policy, Vol. 42, No. 6, pp. 1210-1224.
  11. Brynjolfsson, E. (2002), Understanding the Digital Economy: Data, Tools, and Research, MIT Press.
  12. Chang, S-J. and S. H. Park (2012), "Winning Strategies in China: Competitive Dynamics between MNCs and Local Firms", Long Range Planning, Vol. 45, pp. 1-15.
  13. Chen, Y., Q. Wang, and J. Xie (2011), "Online Social Interactions:A Natural Experiment on Word of Mouth versus Observational Learning", Journal of Marketing Research, Vol. 48, No. 2, pp. 238-254.
  14. Chevalier, J. and D. Mazlin (2006), "The Effect of Word of Mouth onSales: Online Book Reviews", Journal of Marketing Research, Vol. 43, No. 3, pp. 345-354.
  15. Chintagunta, P. K., S. Gopinath, and S. Venkataraman (2010), "The Effects of Online User Reviews on Movie Box Office Performance: Accounting for Sequential Rollout and Aggregation across Local Markets", Marketing Science, Vol. 29, No. 5, pp. 944-957.
  16. Christensen, C. M. and R. S. Rosenbloom (1995), "Explaining the Attacker's Advantage: Technological Paradigms, Organizational Dynamics, and the Value Network", Research Policy, Vol. 24, No. 2, pp. 233-257.
  17. Cooper, R. G. and E. J. Kleinschmidt (1995), "Benchmarking the firm's critical success factors in new product development", Journal of product innovation management, Vol. 12, No. 5, pp. 374-391.
  18. Cui, G., H.-K. Lui, and X. Guo (2012), "The Effect of Online Consumer Reviews on New Product Sales", International Journal of Electronic Commerce, Vol. 17, No. 1, pp. 39-57.
  19. Cusumano, M. A., Y. Mylonadis, and R. S. Rosenbloom (1992), "Strategic Maneuvering and Mass-market Dynamics: The Triumph of VHS over Beta", Business History Review, Vol. 66, No. 1, pp. 51-94.
  20. Dawar, N. and P. Parker (1994), "Marketing Universals: Consumers' Use of Brand Name, Price, Physical Appearance, and Retailer Reputation as Signals of Product Quality", Journal of Marketing, Vol. 58, No. 2, pp. 81-95.
  21. Floyd, K., R. Freling, S. Alhoqail, H. Y. Cho, and T. Freling (2014), "How Online Product Reviews Affect Retail Sales: A Meta-analysis", Journal of Retailing, Vol. 90, No. 2, pp. 217-232.
  22. Forman, C., A. Ghose, and B. Wiesenfeld (2008), "Examining the Relationship between Reviews and Sales: The Role of Reviewer Identity Disclosure in Electronic Markets", Information Systems Research, Vol. 19, No. 3, pp. 291-313.
  23. Ghose, A. and P. G. Iperotis (2011), "Estimating the Helpfulness and Economic Impact of Product Reviews: Mining Text and Reviewer Characteristics", IEEE Transactions on Knowledge & Data Engineering, Vol. 23, No. 10, pp. 1498-1512.
  24. Green, D. H., D. W. Barclay, and A. B. Ryans (1995), "Entry Strategy and Long-term Performance: Conceptualization and Empirical Examination", Journal of Marketing, Vol. 59 No. 4, pp. 1-16.
  25. Grewal, D., R. Krishnan, J. Baker, and N. Borin (1998), "The Effect of Store Name, Brand Name and Price Discounts on Consumers' Evaluations and Purchase Intentions", Journal of Retailing, Vol. 74, No. 3, pp. 331-352.
  26. Griffin, A. (1997), "PDMA Research on New Product Development Practices: Updating Trends and Benchmarking Best Practices", Journal of product innovation management, Vol. 14, No. 6, pp. 429-458.
  27. Gu, B., J. Park, and P. Konana (2012), "The Impact of External Word-of-Mouth Sources on Retailers Sales of High-involvement Products", Information Systems Research, Vol. 23, No. 1, pp. 182-196.
  28. Gupta, S., D. C. Jain, and M. S. Sawhney (1999), "Modeling the Evolution of Markets with Indirect Network Externalities: An Application to Digital Television", Marketing Science, Vol. 18, No. 3, pp. 396-416.
  29. Henard, D. H. and D. M. Szymanski (2001), "Why Some New Products are More Successful than Others", Journal of Marketing Research, Vol. 38, No. 3, pp. 362-375.
  30. Henderson, R. M. and K. B. Clark (1990), "Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms", Administrative Science Quarterly, Vol. 35, No. 1, pp. 9-30.
  31. Henderson, R. (1993), "Underinvestment and Incompetence as Responses to Radical Innovation: Evidence from the Photolithographic Alignment Equipment Industry", Rand Journal of Economics, Vol. 24, No. 2, pp. 248-270.
  32. Hill, C. W. L. and F. T. Rothaermel (2003), "The Performance of Incumbent Firms in the Face of Radical Technological Innovation", Academy of Management Review, Vol. 28, No. 2, pp. 257-74.
  33. Huang, W. Y., H. Schrank, and A. J. Dubinsky (2004), "Effect of Brand Name on ㅇonsumers' Risk Perceptions of Online Shopping", Journal of Consumer Behaviour, Vol. 4, No. 1, pp. 40-50.
  34. Katz, M. L. and C. Shapiro (1985), "Network Externalities, Competition, and Compatibility", American Economic Review, Vol. 75, No. 3, pp. 424-440
  35. Khessina, O. M. and G. R. Carroll (2008), "Product Demography of de novo and de alio Firms in the Optical Disk Drive Industry, 1983-1999", Organization Science, Vol. 19, No. 1, pp. 25-38.
  36. King, A. and C. Tucci (2002), "Incumbent Entry into New Market Niches: The Role of Experience in the Creation of Dynamic Capabilities", Management Science, Vol. 48, No. 2, pp. 171-186.
  37. Li, X. and L. M. Hitt (2008), "Self Selection and Information Role of Online Product Reviews", Information Systems Research, Vol. 19, No. 4, pp. 456-474.
  38. Lieberman, M. B. and D. B. Montgomery (1988), "First Mover Advantages", Strategic Management Journal, Vol. 9, No. 1, pp. 41-58.
  39. Lieberman, M. B. and D. B. Montgomery (1998), "First Mover (Dis)Advantages: Retrospective and Link with the Resource-based View", Strategic Management Journal, Vol. 19, No. 12, pp. 1111-1125.<1111::AID-SMJ21>3.0.CO;2-W
  40. Lynch Jr, J. G. and D. Ariely (2000), "Wine Online: Search Costs Affect Competition on Price, Quality, and Distribution", Marketing Science, Vol. 19, No. 1, pp. 83-103.
  41. Mitchell W. (1989), "Whether and When: Probability and Timing of Incumbents' Entry into Emerging Industrial Subfields", Administrative Science Quarterly, Vol. 34, No. 2, pp. 208-230.
  42. Montoya-Weiss, M. M. and R. Calantone (1994), Determinants of New Product Performance: A Review and Meta-analysis", Journal of Product Innovation Management, Vol. 11, No. 5, pp. 397-417.
  43. Nepomuceno, M. V., M. Laroche, and M. O. Richard (2014), "How to Reduce Perceived Risk When Buying Online: The Interactions between Intangibility, Product Knowledge, Brand Familiarity, Privacy and Security Concerns", Journal of Retailing and Consumer Services, Vol. 21, No. 4, pp. 619-629.
  44. Pathak, B., R. Garfinkel, R.D. Gopal, R. Venkatesan, and F. Yin (2010), "Empirical Analysis of the Impact of Recommender Systems on Sales", Journal of Management Information Systems, Vol. 27, No. 2, pp. 159-188.
  45. Rogers, E. (2003), Diffusion of Innovations, 5th ed., Free Press.
  46. Schilling, M. A. (1998), "Technological Lockout: An Integrative Model of the Economic and Strategic Factors Driving Technology Success and Failure", Academy of Management Review, Vol. 23, No. 2, pp. 267-284.
  47. Schilling, M. A. (2002), "Technology Success and Failure in Winner-take-all Markets: The Impact of Learning Orientation, Timing, and Network Externalities", Academy of Management Journal, Vol. 45, No. 2, pp. 387-398.
  48. Shamsie, J., C. Phelps, and J. Kuperman (2004), "Better Late than Never: A Study of Late Entrants in Household Electrical Equipment", Strategic Management Journal, Vol. 25, No. 1, 69-84.
  49. Suarez, F. F. and G. Lanzolla (2007), "The Role of Environmental Dynamics in Building a First Mover Advantage Theory", Academy of Management Review, Vol. 32, No. 2, pp. 377-392.
  50. Talke, K. and E. J. Hultink (2010), "The Impact of the Corporate Mind-set on New Product Launch Strategy and Market Performance", Journal of Product Innovation Management, Vol. 27, No. 2, pp. 220-237.
  51. Teece, D. J. (1986), "Profiting from Technological Innovation: Implications for Integration, Collaboration, and Public Policy", Research Policy, Vol. 15, No. 6, pp. 285-305.
  52. Tripsas, M. (1997), "Unraveling the Process of Creative Destruction: Complementary Assets and Incumbent Survival in the Typesetter Industry", Strategic Management Journal, Vol. 18. No. s1, pp. 119-142.<119::AID-SMJ921>3.3.CO;2-S
  53. Tushman, M. L. and P. Anderson (1986), "Technological Discontinuities and Organizational Environments", Administrative Science Quarterly, Vol. 31, No. 3, pp. 439-465.
  54. Willard, G. E. and A. C. Cooper (1985), "Survivors of Industry Shakeouts: the Case of the U.S. Color Television Set Industry", Strategic Management Journal, Vol. 6, No. 4, pp. 299-318.