Question

Preannouncements, the firm’s reputation, and credible commitments can all influence the market’s assessment of the product’s likelihood of success. How do preannouncements and reputation in particular impact your likelihood of trying a product exclusive of its price?

Answer 1

Yes, there is no doubt in the fact that mentioned factors definitely helps in ensuring that a product in the new market would be successful or not:

• Pre-announcements make sure that a lot of advertising is done many a times, the customer feels that a company is investing so much on the advertising, it is promoting its product even before the release then there has to be some value in the product and hence this kind of positioning of the product in the minds of the customer ensures that a product is successful in the market.
• Also, reputation of the company instills credibility in the product, the customer starts thinking that such a reputed organization would always sell quality products and hence the customer may try it. Reputation plays a major role in the market because almost every company sells similar product it is based on the reputation that a product sells more or less of any organization.