Explaining Retailers' Adaptation to Delays in New Product Introductions

For benefiting from the advantages of being the first in the market, many companies deliberately release information about a product well in advance of the product actual introduction. However, very often we see how companies fail to deliver their new products on the promised introduction due dates. When preannounced product is delayed, firm may demand and create the need for retailers' adaptation in its favor. This study seeks to explain a retailer's adaptation to product launch delays. An empirical analysis based on 151 3C retailers in Taiwan showed that market dominance of the announcing firm, the expected length of delay, reason for delay, and product relative advantages indirectly influence a retailer's adaptation through their effects on retailer's perceived market tolerance. The market dominance of the announcing firm and the expected length of delay through perceived competitive elasticity as the key mediator also determine a retailer's adaptation. Additionally, the direct influence of category importance and the expected length of delay on a retailer's adaptation are significant.