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Choosing Among Alternative New Product Development Projects: The Role of Heuristics

West, D., Acar, O. A. ORCID: 0000-0003-1993-0921 and Caruana, A. (2020). Choosing Among Alternative New Product Development Projects: The Role of Heuristics. Psychology and Marketing,

Abstract

The initial screening decision that marketing managers make is critical. It requires the selection of which innovation project to invest in, which is fundamental to marketing success. However, our knowledge of how managers make these decisions and how this impacts performance is limited. By drawing upon cognitive psychology and the managerial decision-making literature, we address two critical questions. The first question focuses on identifying specific decisionmaking types (e.g., specific heuristics, intuition) used when making an innovation-screening decision. Based on this analysis and prior research, we develop specific decision-maker profiles about how an individual manager decides. The second research question is about connecting these profiles with performance. Specifically, it addresses what the consequences of different decision-maker profiles are on the perceived accuracy and speed of decision-making? Data were collected from 122 senior managers in these industries. We find that when heuristics are used alone, or concurrently with intuition, managers make decisions that are as accurate as when they rely on analytical decision-making. However, the process is significantly faster. The findings provide an important step towards a more comprehensive understanding of decisionmaking at the front-end of innovation.

Publication Type: Article
Additional Information: © 2020 The Authors. Psychology & Marketing published by Wiley Periodicals LLC This is an open access article under the terms of the Creative Commons Attribution‐NonCommercial‐NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non‐commercial and no modifications or adaptations are made.
Publisher Keywords: Innovation, Product screening, Decision-making, Heuristics, Intuition
Subjects: B Philosophy. Psychology. Religion > BF Psychology
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments: Business School > Management
Date Deposited: 06 Aug 2020 15:05
URI: https://openaccess.city.ac.uk/id/eprint/24640
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