Channel capability and the effectiveness of new product strategies

Abstract

The purpose of this paper is twofold: detecting, describing and providing a detailed understanding on the essence of buyer responses on the channel capability in deciding new product purchase; and describing the effectiveness of new product innovation related to the channel capability. The new product innovation intended here is an outcome of the brand strategy created by the fast-moving consumer goods (FMCG) manufacturer. This research applies qualitative method and uses grounded theory approach and pragmatism interpretation, which are focused on FMCG. The approach chosen in research is grounded theory and pragmatism, parallel to the previous phenomenology and constructivism approach; therefore, the main data for this study use transcript records of the results of in-depth interviews in the field of study. The research showed the following results: the channel capability aspects (warehouse space, shelf space and customer coverage) are the essence of buyers’ responses; construction of business buyer behavior and economic mechanism; the effectiveness of new product innovation; and channel capabilities of selling products. The results of this research have some implications: developing the concept of business buyer behavior in a new-task purchase situation; expanding the micro-economic system of trading sector; and expanding the concept of marketing mix strategy. Some of the theoretical implications are the originality of this research paper; therefore, the constructs will be described theoretically in order to provide practical understanding in some contexts of business importance.