Deconstructing the Pioneer's Advantage: Examining Vintage Effects and Consumer Valuations of Quality and Variety

“Because abrupt market and technology dynamics have a high potential to undermine the effectiveness of isolating mechanisms, early entrants find FMA based on technology leadership more difficult to achieve; conversely, later entrants find that higher-quality products, or innovative solutions that can enable powerful vi…”

“Technological uncertainty can lead early entrants to invest in a technological path that may turn out to be inconsistent with the dominant design and thus disadvantageous (Bohlmann et al., 2002).”

“Others have pointed to a “vintage effect” (Bohlmann, Golder, & Mitra, 2002) in high-velocity technology environments—the pioneer’s technology becomes obsolete more quickly than that of followers, so that users may suddenly shift toward other new technologies.”

“Empirical studies such as Bohlmann et al. (2002) and Cennamo and Santalo (2013) have analyzed the first-mover advantage and winner-take-all hypotheses in a multiplicity of industries, and Bresnahan and Greenstein (1999) have focused on the evolution of platform competition in the computer industry.”

“…whether more adaptive firms can create an advantage has been obliquely addressed in terms of the downside of adapting an early and inefficient generation of a new technology (Bohlmann, Golder, and Mitra, 2002) or the risks of abruptly evolving technological industries (Suárez and Lanzolla, 2007).”

“Market share has been widely used as a performance measure to assess first mover advantages in empirical (e.g., Kalyanaram and Urban, 1992; Urban et al., 1986; Robinson and Fornell, 1985) and theoretical studies (e.g., Bohlmann et al., 2002; Freshtman et al., 1990).”

“However, late entry can sometimes be advantageous (or rather, early entry also has disadvantages) and firms sometimes deliberately delay entry (Bohlmann et al., 2002; Cho et al., 1998; Shamsie et al., 2004; Shankar, Carpenter, and Krishnamurthi, 1998).”

“On the other hand, firms making early investments in the subsequent winning technology may do so too early and find themselves unable to commercialize the best generation of the technology (Bohlmann, Golder, and Mitra, 2002).”

“For instance, Bohlmann et al. (2002) develop a game-theoretical model where early entrants derive benefits due to preemption in markets with heterogeneous demand.”

“More recent marketing work suggests that under some conditions the cost discontinuity associated with vintage effects can lead to a follower advantage with respect to market share and survival rate (Bohlmann 1997, Bohlmann et al. 2002).”

“This result is consistent with the finding of the study by Bohlmann et al. (2002), which showed that the pioneer’s profit decreases when there is a cost advantage for late entry into the market.”

“Future research should also consider what category or firm factors may moderate the effect of standardized information on price (e.g., Bohlmann et al. 2002).”

“That is, we assume a diminishing return on investment as in Gupta and Loulou (1998), Bohlmann et al. (2002), Liu and Serfes (2005), and Gupta (2008).”

“Empirical evidence confirms that technological improvements are an important source of competitive advantage for followers (Bohlmann et al., 2002).”

“Also, by waiting for the cost of technology to decline, firms may be able to build on the technologies pioneered by the earlier entrants and threaten their competitive positioning by competing at a cost advantage, in particular when consumers have not shown any tendency to migrate toward any design (Bohlmann et al., 2…”

“Followers could benefit from a context of weak barriers to entry and imitation, an environment with high uncertainty in consumer preferences and low flexibility of pioneers to changes (Bohlmann et al., 2002).”

“Among them, Bohlmann, Golder, and Mitra (2002) propose a product entry model that incorporates consumer valuations of product variety and quality to study the advantages and disadvantages of the pioneer and the later entrant, and demonstrate how vintage effects can help the later entrant dominate…”

“Bohlmann, Golder, and Mitra (2002) sought to understand the conditions under which pioneers are more likely and also less likely to have an advantage using a gametheoretic model that included important sources of pioneer advantages as well as disadvantages.”

“This is consistent with the idea of technology vintage effects ( Bohlmann et al. 2002 ).”

“ROI, Return on investment; ROS, return on sales. aA higher number indicates a lower degree of competitiveness. both for firms in general (e.g., Kekre and Srinivasan 1990) and pioneering firms in particular (Robinson and Fornell 1985, Robinson 1988, Bohlmann et al. 2002).”

“Consistent with this notion, Bohlmann et al. (2002) find that market shares of first entrants are lower in categories where consumers place more value on quality than in categories where consumers place more value on variety.”

“, quality and preference in the consumer choice environment of [16], performance and cheapness in the economic setting of [17], and variety and quality in the operational research one of [18].”

“…firm1’s period ofmonopoly profit as an entry deterrence mechanism.2 Such a treatment is quite common in sequential games (Tirole 1988; Tyagi 2000; Bohlmann et al. 2002; Demirhan et al. 2007) in general, in models with counterfeits (Cho et al. 2010; Sun et al. 2010; Zhang et al. 2012), in…”

“Therefore, brand loyalty can, in part, result from innate scepticism about the quality of unfamiliar brand”

“This involves an extension of the traditional typology of intrinsic and extrinsic sources of value suggested by Holbrook (1996), and underlines how network services are different from traditional products and services where extrinsic attributes often originate from supplier services and consumer investments (Mathwick,…”

“Bohlmann et al. (2002) with a model with customer heterogeneous in quality find that when customers are highly sensitive to quality, late entrants are benefitted by implementing high-quality IT investments.”

“…of outlets (i.e., stores) and average sales per outlet in a market, both of which are important measures of performance for marketing practitioners and scholars.23 Because sales from 1Firms can develop a late-mover advantage, such as technology vintage effects (Bohlmann, Golder, and Mitra 2002).”

“none Balanced scorecard historical Bohlmann et al. (2002)”

“consumer choice analysts utilize quality and preference [30], economists consider performance and cheapness [38], and operations researchers concentrate on variety and quality [6].”

“The important implication of either definition is that firms can profit from multiple products (Adner and Levinthal, 2001; Bohlmann et al., 2002).”

“quality and preference in the consumer choice environment of [39], performance and cheapness in the economic setting of [44,45], and variety and quality in the operational research one of [8].”

“[18] pioneered an influential study on the vintage effects and consumer valuations of service quality.”

“Perhaps closest to our idea of the quality-variety tradeoff is Bohlmann, Golder and Mitra (2002) who theoretically show that pioneers are likely to succeed in markets where consumers’ taste for variety is higher than the taste for quality.”

“Experience and survival over the life cycle Pioneers tend to succeed when consumers value product variety and late-comers tend to succeed when consumers value product quality (Bohlmann et al. 2002).”

“The strategy of pioneering the growth of new businesses (eg, early entry into a new market, early introduction of a new product) is widely considered to be a cause of long-term success (Bohlmann, Golder, & Mitra, 2002 ).”

“For example, Bohlmann et al. (2002) use game theory to model the advantages and disadvantages faced by early innovators while considering the customer valuation of product attributes.”

“In response to the sustainable hotel, consumers exhibit heterogeneous valuations towards the product’s (Bohlmann et al., 2002; Chen et al., 2023; Hann et al., 2008), we consider the whole market consisting of two types of consumer groups, including high-type consumers and low-type consumers.”

“’ Bohlmann, Golder, and Debanjan (2002, 1177) said that ‘ technology improves over time … As technology advances, later entrants can utilize a more recent and e ffi cient vintage of technology than an earlier entrant who has committed to older technology … vintage e ff ects will bene fi t later…”

“This finding is aligned with the research perspective that emphasizes the environmental impact on new product success (e.g. Bohlmann et al., 2002; Min et al., 2006; Robinson et al., 1992), which suggests that a mere pioneering (or following) does not always guarantee sustainable advantages.”

“Similar suggestions about the benefit (in terms of profit, market share, or both) of entering first and locating near the center appear in Boulding and Christen (2003), Lieberman and Montgomery (1988), Lilien et al.”

“Bohlmann et al. (2002) analyze consumer valuations of product attributes, such as variety and quality, in order to find the conditions under which technological pioneers are more likely or less likely to have an advantage.”

“Radicalness of Innovation: The level of discontinu - ity that the innovation represents in the target market, as reflected by the radicalness of the innovation (e.g., Kerin et al., 1992 ; Bohlmann et al., 2002).”