1990, pp. 3–19; Jonathan Weiner, “Fore-
casting Demand: Consumer Electronics
Marketer Uses a Conjoint Approach to
Configure Its New Product and Set the
Right Price,”Marketing Research: A Maga-
zine of Management & Applications, Sum-
mer 1994, pp. 6–11; Dick R. Wittnick,
Marco Vriens, and Wim Burhenne, “Com-
mercial Uses of Conjoint Analysis in Eu-
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International Journal of Research in Market-
ing, January 1994, pp. 41–52.
- See Robert Blattberg and John Golanty,
“Tracker: An Early Test Market Forecast-
ing and Diagnostic Model for New Prod-
uct Planning,” Journal of Marketing
Research, May 1978, pp. 192–202; Glen L.
Urban, Bruce D. Weinberg, and John R.
Hauser, “Premarket Forecasting of Really
New Products,”Journal of Marketing,Jan-
uary 1996, pp. 47–60; Peter N. Golder
and Gerald J. Tellis, “Will It Ever Fly?
Modeling the Takeoff of Really New Con-
sumer Durables,”Marketing Science,16,
no. 3 (1997): 256–70.
- See Roger A. Kerin, Michael G. Harvey,
and James T. Rothe, “Cannibalism and
New Product Development,” Business
Horizons, October 1978, pp. 25–31.
- The present value (V) of a future sum (I)
to be received tyears from today and dis-
counted at the interest rate (r) is given by
VIt/(1r)t. Thus $4,761,000/(1.15)^5
$2,346,000.
- See David B. Hertz, “Risk Analysis in Cap-
ital Investment,”Harvard Business Review,
January–February 1964, pp. 96–106.
- See John Hauser, “House of Quality,”Har-
vard Business Review, May–June 1988, pp.
63–73. Customer-driven engineering is
also called “quality function deploy-
ment.” See Lawrence R. Guinta and
Nancy C. Praizler, The QFD Book: The
Team Approach to Solving Problems and Sat-
isfying Customers through Quality Function
Deployment(New York: AMACOM, 1993);
V. Srinivasan, William S. Lovejoy, and
David Beach, “Integrated Product Design
for Marketability and Manufacturing,”
Journal of Marketing Research,February
1997, pp. 154–63.
- Marco Iansiti and Alan MacCormack,
“Developing Products on Internet Time,”
Harvard Business Review,September–Oc-
tober 1997, pp. 108–17; Srikant Datar, C.
Clark Jordan, and Kannan Srinivasan,
“Advantages of Time Based New Product
Development in a Fast-Cycle Industry,”
Journal of Marketing Research,February
1997, pp. 36–49; Christopher D. Ittner
and David F. Larcker, “Product Develop-
ment Cycle Time and Organizational Per-
formance,”Journal of Marketing Research,
February 1997, pp. 13–23.
24. Tom Peters, The Circle of Innovation, (New
York: Alfred A. Knopf, 1997), p. 96.
25. Ibid., p. 99.
26. Faye Rice, “Secrets of Product Testing,”
Fortune, November 28, 1994, pp. 172–74;
Lawrence Ingrassia, “Taming the Mon-
ster: How Big Companies Can Change:
Keeping Sharp: Gillette Holds Its Edge by
Endlessly Searching for a Better Shave,”
Wall Street Journal, December 10, 1992, p.
A1.
27. Gerry Khermouch, “Plate Tectonics,”
Brandweek,February 12, 1996, p. 1.
28. Audrey Choi and Gabriella Stern, “The
Lessons of Rügen: Electric Cars are Slow,
Temperamental and Exasperating,”Wall
Street Journal, March 30, 1995, p. B1.
29. John Schwartz, “After 2 Years of Market
Tests, Olestra Products Going National;
Consumer Advocates Still Concerned
About Health Risks,”Washington Post,
February 11, 1998, p. A3.
30. Christopher Power, “Will it Sell in Po-
dunk? Hard to Say,”Business Week, Au-
gust 10, 1992, pp. 46–47.
31. See Kevin J. Clancy, Robert S. Shulman,
and Marianne Wolf, Simulated Test Mar-
keting: Technology for Launching Successful
New Products(New York: Lexington Books,
1994); and V. Mahajan and Jerry Wind,
“New Product Models: Practice, Short-
comings, and Desired Improvements,”
Journal of Product Innovation Management 9
(1992): 128–39; Glen L. Urban, John R.
Hauser, and Roberta A. Chicos, “Informa-
tion Acceleration: Validation and Lessons
from the Field,”Journal of Marketing Re-
search,February 1997, pp. 143–53.
32. Power, “Will It Sell in Podunk,” pp.
46–47.
33. Robert McMath, “To Test or Not to Test
... ,” American Demographics, June
1998, p. 64.
34. Corie Brown, “The Lizard Was a Turkey,”
Newsweek, June 15, 998, p. 71; Tim
Carvell, “How Sony Created a Monster,”
Fortune, June 8, 1998, pp. 162–70.
35. For further discussion, see Robert J.
Thomas, “Timing—The Key to Market
Entry,” Journal of Consumer Marketing,
Summer 1985, pp. 77–87; Thomas S.
Robertson, Jehoshua Eliashberg, and
Talia Rymon, “New Product Announce-
ment Signals and Incumbent Reactions,”
Journal of Marketing,July 1995, pp. 1–15;
Frank H. Alpert and Michael A. Kamins,
“Pioneer Brand Advantages and Con-
sumer Behavior:A Conceptual Frame-
work and Propositional Inventory,”
Journal of the Academy of Marketing Science,
Summer 1994, pp. 244–36.
36. Mickey H. Gramig, “Coca-Cola Unveiling
New Citrus Drink,”Atlanta Journal and
Constitution,January 24, 1998, p. E3.
