Management Practice Insights
Year: 2023, Volume: 1, Issue: 1, Pages: 4-7
Janakiraman Moorthy 1,*
1 Professor in the Department of Marketing, SPJIMR, India
*Correspondance: [email protected]
Received Date:21 November 2022, Accepted Date:14 March 2023, Published Date:09 May 2023
Problem of Practice: The future of a company rides on the success of new products. Not only are sales and marketing teams on the hook for topline numbers, but production capacity, supply chain and working capital requirements also need to line up. However, every major new product launch faces uncertainty, as it is hard to accurately forecast customer adoption by using traditional marketing research. But now research by Harz and team recommends a novel solution: having potential customers interact with the planned product using virtual reality (VR). Combined with the right statistical models, VR-based interactions yield more reliable data for product analytics and improvement than traditional methods
1 Nathalie Harz, Sebastian Hohenberg, and Christian Homburg, “Virtual Reality in New Product Development: Insights from Prelaunch Sales Forecasting for Durables,” Journal of Marketing 86, no. 3 (May 1, 2022): 15779, https://doi.org/10.1177/00222429211014902.
2 Adam Blair, “Virtual Reality Product Testing Improves Merchandising For Baby Food Brand,” Retail TouchPoints, April 6, 2016, https://www.retailtouchpoints.com/features/retail-success-stories/virtualreality-product-testing-improves-merchandising-for-baby-food-brand.
3 Mock-up vs VR. Which Is a Better Tool during Design?, 2019, https://www.stantec.com/en/ideas/watch/mock-up-vs-vr-which-is-a-bettertool-during-design.
4 Jeremy Bailenson, “Is VR the Future of Corporate Training?,” Harvard Business Review, September 18, 2020, https://hbr.org/2020/09/is-vr-thefuture-of-corporate-training.
5 Lorne Fade, “VR & AR Application Development Costs Explained,” VR Vision Group (blog), August 27, 2019, https://vrvisiongroup.com/vr-arapplication-development-costs-explained/
6 Amazon, “Google Cardboard, VR Headsets 3D Box Virtual Reality Glasses with Big Clear 3D Optical Lens and Comfortable Head Strap for All 3-6 Inch Smartphones (Yellow, 1 Pack),” e-commerce, Amazon.com, accessed April 14,
7 Amazon, “Oculus Quest All-in-One VR Gaming Headset 128GB : Video Games,” e-commerce, Amazon.com, accessed April 14, 2023, https://www.amazon.com/Oculus-Quest-All-Gaming-Headsetandroid/dp/B07PRDGYTW/ref=sr_1_3?crid=37L1LYMUU84BE&keywords=oculus+vr&qid=1679552998&sprefix=oculus+vr%2Caps%2C272&sr=8-3&ufe=app_do%3Aamzn1.fos.2b70bf2b-6730-4ccf-ab97-eb60747b8daf.
8 Bruce Brown and Scott D. Anthony, “How P&G Tripled Its Innovation Success Rate,” Harvard Business Review, June 2011, https://hbr.org/2011/06/how-pg-tripled-its-innovation-success-rate.
9 “Tata Nano Ends 2019 with Zero Production,” The Economic Times, January 7, 2020, https://economictimes.indiatimes.com/industry/auto/autonews/tata-nano-ends-2019-with-zero-production/articleshow/73131247.cms.
10 Why Apples Newton Flopped (Will History Repeat Itself?), One More Thing (CNET, 2023), https://youtu.be/wVvdul0q9sQ.
11 Umair Haque, “Google Glass Failed Because It Just Wasnt Cool,” Harvard Business Review, January 30, 2015, https://hbr.org/2015/01/google-glass-failedbecause-it-just-wasnt-cool.
© 2023 Published by SPJIMR. This is an open-access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/)
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