LEARNING EFFECT IN MULTINATIONAL DIFFUSION OF CONSUMER DURABLES - AN EXPLORATORY INVESTIGATION

Literature reflects that a product/technological innovation introduced later in a country results in faster diffusion as the consumers in th e lag market have an opportunity to learn about the new product from t he consumers in the lead marker. A systematic understanding of the lea rning that takes place between consumers in two countries-a pair of le ad and lag countries-can provide insights for a firm's international m arket entry decisions. To provide a richer understanding of the underl ying structure and patterns that govern this process, propositions lin king factors (country characteristics, product/innovation characterist ics, and time lag) to the learning process are drawn. Subsequently, th ese propositions are tested through an empirical investigation of the diffusion patterns of four consumer innovations in multiple European c ountries. The findings help provide some preliminary guidelines for ma nufacturers regarding selection of foreign markers and the timing and order-of-entry decisions.