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The Impact of New Product Launch Strategies on the Reaction of Competitors in the Taiwanese Cosmetic Industry

The characteristics of a new product launch strategy were found to have a significant impact on the intensity of competitive reactions. Following an extensive review of the literature, a propositional model is developed. In order to test this theoretical model, an ex post facto field study was designed, in which the authors obtained comprehensive information on 36 new products launched in the Taiwan cosmetic industry. Competitive reaction is diagnosed in terms of changes in the marketing instruments of the competitors. The data show that competitors react primarily by means of price changes, product changes and promotion changes. The article discusses theoretical and managerial implications ...

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