Research: Types of customers to consider when launching a new product

Their paper is published in the peer-reviewed journal Production and Operations Management. 

Tamer Boyaci, Professor of Management Science, and Huseyin Gurkan, Assistant Professor of Management Science, both at ESMT, and their colleague Soudipta Chakraborty, from the  

University of Kansas in the US, say firms often release information about the product to a select number of customers, usually through public pilot tests and giveaways to customers, or sharing their products with opinion leaders and influencers. 

However, this approach raises several questions: What type of reviewers should firms reach out to? What pilot tests should be performed? 

The researchers say there are three key strategies that firms should use, depending on the characteristics of the potential customers. 

Fans, sceptics and middle-grounders 

When creating demand to a new product, there are several types of customers to consider: fans of the product who want to receive it immediately and are optimistic about the quality; sceptics who are pessimistic about the product and likely won’t buy until convinced; and middle-grounders who need more information to buy a product. 

The researchers’ framework shows that in a market dominated by fans, Apple or Nike being examples of brands in this category, the launch strategy may not necessarily require soliciting reviews or conducting publicly observable pilot tests. The strong brand image and customer loyalty will help to drive sales. 

In a market dominated by sceptics – likely with new, innovative, or sustainable-focused products – companies should choose objective product reviewers or perform a variety of realistic pilot tests that provide customers with an idea of quality and benefits. 

However, a market with middle-grounders requires a third strategy. This necessitates collaborating with demanding reviewers or instituting challenging pilot tests. 

This is because a potentially positive review or performance evaluation would remove customers’ concerns about the product. Due to the demanding nature of the reviewer or test, even a negative review or a failed test would not necessarily indicate bad quality. 

“Companies with new products have always sought opinion leaders to pass their products onto first – whether it’s book reviewers, magazine editors, or the more prominent social media influencers we see today,” says Boyaci. 

Prof. Gurkan adds, “It’s easy to assume that much exposure for your product with influencers is a good thing as it pushes demand up further, but this is a tricky game, and companies must be more considerate in their product-launch approaches.” 

In summary, says the research team, when launching a new product it is key to understand what your target audience and potential customers think of the company, as well as the type of product you are unveiling. The greater understanding you have, the less likely you are to receive a launch backlash, or experience a lack of demand due to limited product awareness.