Firm newness, product novelty and aesthetic failure

Purpose – The purpose of this paper is to examine product failures in the consumer technology products industry to explain why some firms experience more aesthetic-related failures than others. Design/methodology/approach – The study uses a unique data set of failed high technology consumer products identified by expert product reviewers of 75 online magazines during 2000-2010. The variables are constructed using two coders as well as using an automated content analysis process based on the information provided in the online product reviews. The study tests a hypothesis using multilevel logistic regression techniques on a sample of 606 product reviews of 323 products associated with 171 firms. Findings – The study demonstrates that older firms are much more susceptible than younger firms to suffer from aesthetic-related product failures when they pursue product innovations that are new for them. Likewise, older firms suffer fewer aesthetics-related product failures than younger firms when they exploit pro...

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