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Perspective: New Product Failure Rates: Influence of A rgumentum ad P opulum and Self‐Interest
Author(s) -
Castellion George,
Markham Stephen K.
Publication year - 2013
Publication title -
journal of product innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.646
H-Index - 144
eISSN - 1540-5885
pISSN - 0737-6782
DOI - 10.1111/j.1540-5885.2012.01009.x
Subject(s) - mythology , fallacy , product (mathematics) , perspective (graphical) , argument (complex analysis) , marketing , appeal , empirical research , new product development , business , economics , computer science , political science , epistemology , law , philosophy , chemistry , geometry , theology , mathematics , biochemistry , artificial intelligence
A persistent myth in product innovation and management is that the failure rate of new products is 80% or higher. How does this false idea continue to displace the conclusions of empirical studies since 1977 that the new product failure rate is 40% or less? We examine the influence of a fallacy that encourages people's unthinking acceptance of ideas on new product failure rates and whose appeal rests primarily on an emotional, rather than a reasoned, argument. Self‐interest also plays a major role in keeping this myth alive.