Outcomes of decision speed: An empirical study in product elimination decision-making processes

Paraskevas Argouslidis, George Baltas, Alexis Mavrommatis

Producció científica: Article en revista indexadaArticleAvaluat per experts

9 Cites (Scopus)

Resum

Purpose: This paper aims to consider decision speed's role in the largely neglected decision area of product elimination. Design/methodology/approach: Drawing on an inter-disciplinary theoretical background (e.g. organisational, decision speed and product elimination theories), the authors develop and test a framework for decision speed's effects on the market and financial outcomes of a stratified random sample of 175 consumer product eliminations. Findings: In contrast to decision speed research that hypothesised (and often failed to confirm) linearity, results show inverted ∪-shaped decision speed-to-decision outcomes relationships, with curvatures moderated by product importance, environmental complexity and turbulence. Research limitations/implications: Findings are suggestive of several implications for the above theories (e.g. contribution to the dialogue about performance-enhancing value of rational vs incremental decision-making; evidence that excessive decision speed may become too much of a good thing). Certain design limitations (e.g. sampling consumer goods' manufacturers only) point at avenues for future inquiry into the product elimination decision speed-to-outcomes link. Practical implications: Managerially, the findings suggest that product eliminations' optimal market and financial outcomes depend on a mix of speed and search in decision-making and that this mix requires adjustments to different levels of product importance, interdependencies with other decision areas of the firm and environmental turbulence. Originality/value: The paper makes a twofold contribution. It enriches decision speed research, by empirically addressing speed's outcomes in relation to a decision area that is not necessarily strategic and represents the first explicit empirical investigation into outcomes of decision speed in product line pruning decision-making.

Idioma originalAnglès
Pàgines (de-a)982-1008
Nombre de pàgines27
RevistaEuropean Journal of Marketing
Volum48
Número5-6
DOIs
Estat de la publicacióPublicada - de maig 2014
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