Short- and Long-Term Performance Effects of Marketing
The top-line performance of new products has been studied extensively in the diffusion-of-innovation literature. Among the major findings are that revenue from new products may take considerable time to materialize and that revenue levels depend on several factors, including the degree of product innovation. In addition, new product introductions may have a persistent effect on revenues, compared with the effects of price promotions, which typically produce only temporary benefits. Therefore, the assessment of new product and promotional effects on revenue should distinguish short-term (immediate or same-week) effects and long term effects, which can be temporary (adjustment, dust settling) or persistent (permanent).