The goal is attainable: the effects of goal gradient and sub-goals on escalation of commitment in a new product evaluation
DOI:
https://doi.org/10.1108/INMR-05-2020-0064Palavras-chave:
New product development, Escalation of commitment, Goal gradient effect, Sub-goalsResumo
Purpose – The purpose of this study is to investigate whether, in the context of making a go/no-go decision
regarding a failing new product, the use of a stopping rule and/or a new decision-maker would reduce the
escalation of commitment (EOC).
Design/methodology/approach – This study uses a classroom experiment design and uses logistic
regression and a chi-square test to analyze its data.
Findings – The findings show that both responsible and non-responsible participants are more likely to
perceive the negative performance of a new product as less negative and believe that the goal for the product
can be reached when there is a stopping rule and proximal negative feedback indicates a level of performance
below but very close to it than when there is no stopping rule. Therefore, they are more likely to continue the
failing new product, whether they are responsible for the product or not. However, non-responsible decisionmakers are more likely than their responsible counterparts to discontinue the failing new product in the
absence of a stopping rule.
Research limitations/implications – This paper extends the theory of EOC by showing that the use of
a stopping rule and/or a new decision-maker may not reduce EOC.
Practical implications – This paper provides useful guidelines for managers on how to reduce EOC.
Originality/value – The originality and value of this paper are found in the investigation of a situation in
which the use of a stopping rule and/or a new decision-maker may not reduce the EOC.
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commitment. Journal of Behavioral Decision Making, 28(2), 114–129. doi: https://doi.org/
1002/bdm.1835.
Lee, J.S., Keil, M., & Wong, K.F.E. (2020). When a growth mindset can backfire and cause
escalation of commitment to a troubled information technology project. Information
Systems Journal, 31(1), 1–26, doi: https://doi.org/10.1111/isj.12287.
Liang, B. (2019). The effects of self-efficacy, process feedback, and task complexity on escalation
of commitment in new product development. Journal of Business & Industrial Marketing,
(8), 1641–1653. doi: https://doi.org/10.1108/JBIM-02-2019-0096.
Liang, B., Kale, S. H., & Cherian, J. (2014). Is the future static or dynamic? The role of culture on
escalation of commitment in new product development. Industrial Marketing Management,
(1), 155–163. doi: https://doi.org/10.1016/j.indmarman.2013.08.009.
Lukas, M. (2018). The goal gradient effect and repayments in consumer credit. Economics Letters, 171,
–210. doi: https://doi.org/10.1016/j.econlet.2018.06.025.
Meer, D. Landy, E. C., & Sharma, S. (2015). Creating what consumers want. Forbes. Retrieved from www.
forbes.com/sites/strategyand/2015/01/26/creating-what-consumers-want (accessed 26 January 2015)
Ordoñez, L. D., Schweitzer, M. E., Galinsky, A. D., & Bazerman, M. H. (2009). Goals gone wild: The
systematic side effects of overprescribing goal setting. Academy of Management Perspectives,
(1), 6–16. doi: https://doi.org/10.5465/amp.2009.37007999.
Park, S. C., & Keil, M. (2019). The moderating effects of product involvement on escalation behavior.
Journal of Computer Information Systems, 59(3), 218–232. doi: https://doi.org/10.1080/
2017.1328648.
Park, C. W., MacInnis, D. J., Priester, J., Eisingerich, A. B., & Iacobucci, D. (2010). Brand attachment and
brand attitude strength: conceptual and empirical differentiation of two critical brand equity
drivers. Journal of Marketing, 74(6), 1–17. doi: https://doi.org/10.1509/jmkg.74.6.1.
Pierce, J. L., Kostova, T., & Dirks, K. T. (2001). Toward a theory of psychological ownership in
organizations. Academy of Management Review, 26(2), 298–310. doi: https://doi.org/10.5465/
amr.2001.4378028.
Sarangee, K. R., Schmidt, J. B., & Calantone, R. J. (2019). Anticipated regret and escalation of
commitment to failing, new product development projects in business markets. Industrial
Marketing Management, 76, 157–168. doi: https://doi.org/10.1016/j.
indmarman.2018.08.008.
Sarangee, K. R., Woolley, J. L., Schmidt, J. B., & Long, E. (2014). De-escalation mechanisms in hightechnology product innovation. Journal of Product Innovation Management, 31(5), 1023–1038.
doi: https://doi.org/10.1111/jpim.12142.
Schmidt, J. B., & Calantone, R. J. (2002). Escalation of commitment during new product development.
Journal of the Academy of Marketing Science, 30(2), 103–118. doi: https://doi.org/10.1177/
Shah, P. (2015). Kill it or keep it? the weak brand retain-or-discard decision in brand portfolio
management. Journal of Brand Management, 22(2), 154–172. doi: https://doi.org/10.1057/
bm.2015.11.
Shah, J. Y., Friedman, R., & Kruglanski, A. W. (2002). Forgetting all else: On the antecedents and
consequences of goal shielding. Journal of Personality and Social Psychology, 83(6), 1261–1280.
doi: https://doi.org/10.1037/0022-3514.83.6.1261.
Simonson, I., & Staw, B. M. (1992). Deescalation strategies: A comparison of techniques for reducing
commitment to losing courses of action. Journal of Applied Psychology, 77(4), 419. doi: https://doi.
org/10.1037/0021-9010.77.4.419.
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