Tuesday 24 March 2009

Backlash: How Early Adopters React When the Mass Market Embraces a New Brand

A very interesting note that appeared in the Knowledge@Wharton site (click title to view). Written by Wharton marketing professors David Reibstein and John Zhang who explain that a company could experience a backlash as its early adopters move on to other new products because of the arrival of the "mass market" consumers.

We believe this to be true and have written elsewhere in this blog of the need for companies to make a choice. Value or volume market share?

http://rituvenkat12.blogspot.com/2007/07/market-share-or-profitability.html

In a globally competitive market, no company has simultaneously gained volume market share while maintaining premium pricing. we think Starbucks went wrong there. We think Apple is at risk- so is Nokia.

ritu and venkat

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