New product preannouncement : a model of situational factors, strategic behaviours, and effectiveness

New product preannouncement refers to a firm’s communication of new product-related messages to the market before launch. There is empirical evidence to show that new product preannouncement has become an essential part of prelaunch activities. The purpose of this research is to bridge a gap in our understanding of the nature of new product preannouncing behaviour. Specifically, the research aims to answer two related research questions: (1) What situational factors influence the firm’s adoption of different new product preannouncing behaviours? (2) How can the performance of various preannouncements be measured and linked to the antecedents? A comprehensive model is proposed that depicts the links among the situational factors, strategic behaviours, and effectiveness of new product preannouncement. Data to be used for testing the model were collected by a questionnaire survey. The sampling frame included a wide range of industries, such as consumer durable, industrial goods, and high-tech products, in which new product preannouncing is prevalent and salient. Hypothesised links depicted in the research model were tested using structural equation modelling. The findings show that the characteristics of the brand/product, firm, and market affect new product preannouncing behaviours, which, in turn, influence effectiveness of new product preannouncement. A firm’s characteristics directly influence preannouncing effectiveness as well. In short, a firm is more likely to preannounce a new product with clear and truthful messages if the product is affiliated with a strong brand. However, if the new product is a radical innovation, the firm would tend to convey less uniform messages. Large firms (in terms of the number of employees) preannounce their products earlier but less frequently, with more message cues in ambiguous and untruthful forms. Contrarily, market leading firms (in terms of market share) tend to preannounce new products more frequently and use more message cues. Market-oriented firms are more likely to deliver uniform messages with sufficient cues in their preannouncements. Firms facing high network externalities are more inclined to conduct early preannouncements with abundant message content. In hostile environments, firms tend to avoid early preannouncements, while engaging in frequent preannouncements loaded with more message cues. Firms in technologically turbulent markets are more likely to have fewer messages contained in the preannouncements. Uniform messages enhance effectiveness of new product preannouncement. Likewise, frequent preannouncing also results in higher effectiveness. Another way to increase the effectiveness is to conduct an early preannouncement. Large firms tend to enjoy higher preannouncing effectiveness, ceteris paribus. Market leading or market- orientated firms also have a greater likelihood of achieving higher preannouncing effectiveness. Furthermore, the more favourably the media cover a firm’s new product preannouncement, the more likely the preannouncements will be effective. This research reflects the fact that new product preannouncing strategies vary depending on the characteristics of product, firm, and market. The findings lead to an integrative model that can guide the management of new preannouncement to achieve higher effectiveness. Developing appropriate preannouncing strategies depends on the simultaneous consideration of situational factors and the impacts of different strategies on preannouncing effectiveness. In a sense, this research represents a further step toward dealing with a managerial challenge—to preannounce the right messages to the right audiences through the right communication channels at the right time.