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.
Should You Launch Products During a Recession?
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.