The Role of Product Innovation in Marketing Performance: Empirical Study in FMCG Market

Product innovation allows firms to not only develop new market segments but also expand its current market segments and product portfolios; however, it is also associated with higher costs as well as higher risks and management challenges. Hence, despite growing research on product innovation, its e...

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Main Authors: Davcik, N.S., Sharma, Piyush
Format: Conference Paper
Published: 2017
Online Access:http://hdl.handle.net/20.500.11937/88178
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author Davcik, N.S.
Sharma, Piyush
author_facet Davcik, N.S.
Sharma, Piyush
author_sort Davcik, N.S.
building Curtin Institutional Repository
collection Online Access
description Product innovation allows firms to not only develop new market segments but also expand its current market segments and product portfolios; however, it is also associated with higher costs as well as higher risks and management challenges. Hence, despite growing research on product innovation, its effect on firm performance remains unclear. Moreover, prior studies on brand equity generally focus on the link between consumers’ perceptions of brand equity and their behavioral intentions and outcomes such as repeat purchase and brand loyalty at the individual consumer level, with hardly any studies on brand equity and the associated outcomes at the level of brands or product categories. We address both these research gaps by using signaling theory and dynamic marketing capability (DMC) perspective from resource-based theory (RBT) to explore the mediating role of product innovation in the influence of research and development (R&D) expenditure and brand equity on marketing performance. We also examine differences in these influences for different types of firms (retailer, small and medium enterprises [SME], and multinational companies [MNC]) and innovation (conventional, functional, and organic) using a large dataset from the Italian package food industry. We discuss our findings and their implications and suggest several directions for future research.
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spelling curtin-20.500.11937-881782022-06-28T07:09:00Z The Role of Product Innovation in Marketing Performance: Empirical Study in FMCG Market Davcik, N.S. Sharma, Piyush Product innovation allows firms to not only develop new market segments but also expand its current market segments and product portfolios; however, it is also associated with higher costs as well as higher risks and management challenges. Hence, despite growing research on product innovation, its effect on firm performance remains unclear. Moreover, prior studies on brand equity generally focus on the link between consumers’ perceptions of brand equity and their behavioral intentions and outcomes such as repeat purchase and brand loyalty at the individual consumer level, with hardly any studies on brand equity and the associated outcomes at the level of brands or product categories. We address both these research gaps by using signaling theory and dynamic marketing capability (DMC) perspective from resource-based theory (RBT) to explore the mediating role of product innovation in the influence of research and development (R&D) expenditure and brand equity on marketing performance. We also examine differences in these influences for different types of firms (retailer, small and medium enterprises [SME], and multinational companies [MNC]) and innovation (conventional, functional, and organic) using a large dataset from the Italian package food industry. We discuss our findings and their implications and suggest several directions for future research. 2017 Conference Paper http://hdl.handle.net/20.500.11937/88178 10.1007/978-3-319-47331-4_49 restricted
spellingShingle Davcik, N.S.
Sharma, Piyush
The Role of Product Innovation in Marketing Performance: Empirical Study in FMCG Market
title The Role of Product Innovation in Marketing Performance: Empirical Study in FMCG Market
title_full The Role of Product Innovation in Marketing Performance: Empirical Study in FMCG Market
title_fullStr The Role of Product Innovation in Marketing Performance: Empirical Study in FMCG Market
title_full_unstemmed The Role of Product Innovation in Marketing Performance: Empirical Study in FMCG Market
title_short The Role of Product Innovation in Marketing Performance: Empirical Study in FMCG Market
title_sort role of product innovation in marketing performance: empirical study in fmcg market
url http://hdl.handle.net/20.500.11937/88178