The Critical Role of Market Segmentation: Evidence from the Audio Player Market

The aim of this research is the investigate the role played by market segmentation, in general, and by the choice of initial market segment, in particular, in the ability of a product to cross the chasm. To do so, a theoretical framework, enabling to explain the ability of some firms to cross this chasm, while many others remain unsuccessful is developed. The key result of this research is that the choice of initial market segment has crucial importance as adoption in this segment can lead to a cascade of adoption in the other segments. To illustrate this proposition, three cases studies of an historical leader (Sony), a first mover (Archos) and a newcomer (Apple) in the market for digital audio players are presented. © 2011, IGI Global.

[1]  John Metcalfe.  Ed Mansfield and the Diffusion of Innovation: An Evolutionary Connection , 2004 .

[2]  L. G. Tornatzky,et al.  Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings , 1982, IEEE Transactions on Engineering Management.

[3]  T. Valente.  Social network thresholds in the diffusion of innovations , 1996 .

[4]  C. Shapiro,et al.  Systems Competition and Network Effects , 1994 .

[5]  Thierry Rayna,et al.  The Curse of the First-Mover: When Incremental Innovation Leads to Radical Change , 2009 .

[6]  S. Slater,et al.  PERSPECTIVE: First, Fast, and On Time: The Path to Success. Or Is It? , 1999 .

[7]  Gerard J. Tellis,et al.  Global Takeoff of New Products: Culture, Wealth or Vanishing Differences? , 2008, Mark. Sci..

[8]  S. Fournier,et al.  Paradoxes of Technology: Consumer Cognizance, Emotions, and Coping Strategies , 1998 .

[9]  G. Tellis,et al.  Understanding and Managing International Growth of New Products , 2004 .

[10]  S. Ram,et al.  Consumer Resistance to Innovations: The Marketing Problem and its solutions , 1989 .

[11]  S. Sanderson,et al.  Managing product families: The case of the Sony Walkman , 1995 .

[12]  Teck-Hua Ho,et al.  New product development: the performance and time-to-market tradeoff , 1996 .

[13]  I. MacMillan,et al.  Competitors' responses to easily imitated new products—exploring commercial banking product introductions , 1985 .

[14]  Sangmoon Park,et al.  Separating early-adopters from the majority: The case of Broadband Internet access in Korea , 2005 .

[15]  Insoo Jeon,et al.  Tasks and Theories in the Marketing Strategy of Innovative New Product , 2003 .

[16]  G. Tellis,et al.  Growing, Growing, Gone: Cascades, Diffusion, and Turning Points in the Product Life Cycle , 2004 .

[17]  Oz Shy,et al.  Technology revolutions in the presence of network externalities , 1996 .

[18]  C. Oliver.  STRATEGIC RESPONSES TO INSTITUTIONAL PROCESSES , 1991 .

[19]  Russell W. Belk,et al.  The Cult of Macintosh , 2005 .

[20]  Nigel Meade,et al.  The diffusion of successive generations of a technology: A more general model , 1997 .

[21]  Jacob Goldenberg,et al.  Riding the Saddle: How Cross-Market Communications Can Create a Major Slump in Sales , 2002 .

[22]  E. Rogers.  Diffusion of preventive innovations. , 2002, Addictive behaviors.

[23]  Vijay Mahajan,et al.  Determination of Adopter Categories by Using Innovation Diffusion Models , 1990 .