Determinants of New Product Launch Success in the Pharmaceutical Industry

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. 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. 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. 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.