Confer

Even though people tend to limit spending and companies generally scale back advertising during downturns, the timing may confer an advantage on firms that go ahead with launches, the researchers say. That’s because there is less noise in the marketplace, making it easier to differentiate products and draw consumers’ attention. In addition, the cost of running ads is often lower, providing more bang for the buck. Finally, going ahead with new products in the midst of a weak economy is often perceived as a signal of corporate health. As customers become increasingly anxious and risk averse, they may be wary of buying from companies that seem likely to go out of business, perceiving that those in a position to roll out new products are more likely to endure.