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Determinants of New Product Launch Success in the Pharmaceutical Industry

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Abstract

Purpose

This study identifies key determinants of new product launch success, examines their role and impact on launch performance and links them to the different stages of product life cycle in the pharmaceutical new product launch context.

Methods

Survey data from pharmaceutical industry was analysed with multivariate data analysis using latent variable regression modelling followed by the calculation of selectivity ratios to reveal the most informative determinants.

Results

The results distinguish between the determinants driving financial new product launch success and those driving customer acceptance. Whereas financial success is driven by strategic choices and tactical decisions, the relationship approach is vital in fostering customer acceptance at different phases of the innovation diffusion. Product advantage and relationship marketing activities contribute to achieving key opinion leaders’ acceptance in the early phase, while the accumulated market-based assets largely determine acceptance of a majority of other target customers in the later phase. Furthermore, launch performance is enhanced by a relationship-oriented company culture.

Conclusions

The study emphasises the significance of relational aspects in new product launches and provides both important theoretical insights and managerial implications for commercialising new pharmaceutical products.

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Acknowledgments

D.Sc. (Econ.) Esa Matikainen

Conflict of Interest

The authors declare that they have no conflict of interest.

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Authors and Affiliations

  1. Faculty of Pharmacy, Division of Pharmaceutical Chemistry and Technology, Formulation and Industrial Pharmacy, University of Helsinki, P.O. Box 56, Viikinkaari 5E, FI-00014, Helsinki, Finland

    Minna Matikainen, Marikki Peltoniemi & Anne Juppo

  2. The Norwegian Multiple Sclerosis Centre, Department of Neurology, Haukeland University Hospital, Bergen, Norway

    Tarja Rajalahti

  3. KG Jebsen Multiple Sclerosis Centre, Department of Clinical Medicine, University of Bergen, Bergen, Norway

    Tarja Rajalahti

  4. Department of Research and Development, Førde Central Hospital, Førde, Norway

    Tarja Rajalahti

  5. Department of Forest Sciences, University of Helsinki, P.O. Box 27, Latokartanonkaari 7, FI-00014, Helsinki, Finland

    Petri Parvinen

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  1. Minna Matikainen
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  2. Tarja Rajalahti
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Correspondence to Minna Matikainen.

Appendix 1

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Table 6 Variables
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Matikainen, M., Rajalahti, T., Peltoniemi, M. et al. Determinants of New Product Launch Success in the Pharmaceutical Industry. J Pharm Innov 10, 175–189 (2015). https://doi.org/10.1007/s12247-015-9216-7

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  • DOI: https://doi.org/10.1007/s12247-015-9216-7

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