The international rate of discontinuance of some old products

J. Palacios Fenech and N.T. Longford

Abstract

Pro-innovation bias has limited marketing scholars to only study about the dynamics of rapidly spreading innovations. However, firms also need to understand how old product are being discontinued. Wealth, substitute products, and time effects on the rate of discontinuance of four durable goods are analyzed in 86 countries. The global rate of discontinuance is found to be faster in countries where discontinuance tends to start later, slower than the rate of adoption, and also faster in emerging economies. We conclude that assuming that the rates of adoption and discontinuance share the same dynamics may lead to wrong strategic decisions.

Journal of Global Marketing 27, 59-73, 2014.

May 2014.