CONSUMER LEARNING AND THE CREATION OF PRIMACY ADVANTAGES FOR FOLLOWERS

BRIAN T. ENGELLAND AND BRUCE L. ALFORD


Abstract

This paper examines the basis for the primacy advantages that pioneers enjoy, and then applies it to the strategic plight of followers. The authors develop and test a Model of Innovation Learning that shows how individuals relate their understanding of new products to those with which they've had previous exposure. In an application of the model to the introduction of a new packaged good, three factors -relative advantage, expertise, and familiarity -are found to have statistically significant effects on perceived distinctiveness; and perceived distinctiveness is found to be a predictor of perceptual separation and primacy advantage. Suggestions are given to assist in strategy formulation decisions for followers

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