Business Entrance Strategy Focusing on Buyers’ Perspectives

Abstract: Entering a market first or early is an important decision making in business. Many studies have been done regarding pioneering advantages or order of entry effects. Being based on database or archival analysis, these studies assumed that real pioneers in a specific market are the same as the companies that are perceived as pioneers by the buyers or customers. However, perceived pioneers can be different from real pioneers. One contribution of this study is the first trial to measure the effect of the pioneer perception on business manager’s purchase intention, commitment, trust, and long-term relationship. Another contribution is the measurement of pioneer perception. While most of the studies in pioneer advantages use either self-report database or history analysis, the current study uses a survey to measure and finds out the relationships. Managerial implications and limitations of the study is followed.

Key words: entry order, pioneering advantages, customer relationship, business-to-business market, long-term relationship

JEL codes: M31, L1, D22