Economic downturns are frightening. Consumers curb spending, companies cut costs, and we all wait anxiously for the economy to recover. In such a climate, launching a product—an expensive and uncertain endeavor in the best of times—would seem to make little sense. But a new study finds that products launched during recessions outperform on several important measures.
Even though people tend to limit spending during downturns, the timing may confer, for several reasons: There is less noise in the marketplace, making it easier to differentiate products and draw consumers’ attention; the cost of running ads is often lower; and going ahead with new products in the midst of a weak economy is often perceived as a signal of corporate health.
This article outlines other key insights from the research and offers guidance on how best to time product launches.
Economic downturns are frightening. Consumers curb spending, companies cut costs, and we all wait anxiously for the economy to recover. In such a climate, launching a product—an expensive and uncertain endeavor in the best of times—would seem to make little sense. But a new study finds that products launched during recessions outperform on several important measures.
