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This paper aims to examine how pioneering advantage interacts with the compromise effect generated by new product entries. Building on prior work on pioneering advantage and extreme aversion, this research moves toward understanding how the choice share of a pioneer realigns as a consequence of new product entries generating compromise-like scenarios.

The authors run three experiments to test their propositions. The authors present one study which documents the effect. The second study provides process evidence. The third study suggests how brands can neutralize the adverse effect on their share generated by the followers’ entry/positioning.

In three studies, the authors showed that when a pioneering product becomes intermediate in a choice set, its share is more adversely affected than when it becomes extreme. The authors show that this depends on consumers’ propensity to use non-compensatory decision rules in the presence of a pioneering alternative. The authors also document that the relative disadvantage of the intermediate pioneer can be overcome when the reasons for selecting an intermediate alternative based on a compensatory decision rule are restored.

The research provides guidelines for managers wanting to enter product categories where a pioneer already exists. The authors show that opting for an extreme position that renders the pioneer intermediate can be rewarding. In contrast, being the second extreme player in a market where the pioneer becomes extreme reduces the expected share of this last entrant.

The authors’ contribution is in showing that this decision strategy can clash with the rule consumers generally use in a compromise setting and that this clash generates two different effects when the pioneer becomes intermediate or extreme.

In this paper, we postulate that a balanced input from R&D and marketing improves the entry strategy selection process. While doing so, we focus our attention on two dimensions: magnitude of investment and timing of entry. On the basis of the literature and empirical studies, we have developed a conceptual framework and defined measures for the desired level of the R&D/marketing interface. This framework contributes to the literature on the R&D/marketing interface by spelling out the interaction between the R&D/marketing interface and entry strategy decision on new product performance. It also adds to the literature on new product introduction by focusing on the determinants of entry strategy and their impact on new product performance.