Analysis on product rollover strategies: The innovation level perspective
Analysis on product rollover strategies: The innovation level perspective
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产品周转策略分析:创新层面视角
DOI:
10.1016/j.indmarman.2020.04.015
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发表时间:
2020-07
影响因子:
10.3
通讯作者:
Wang Nianxin
中科院分区:
文献类型:
--
作者:
Ye Taofeng;Wang Ning;Wang Nianxin
We focus on the firm's decision on product rollover strategies from the view of innovation level. Consider an innovative firm produces and sells durable goods to strategic consumers over two periods. In period one, the firm offers a product with a low innovation level. During that period, the firm continues to innovate such that a product with a high innovation level can be offered in period two. The analysis is separated into two parts: minor-to-moderate innovation and major innovation. We find that the rollover decision is considerably different when the innovation is minor-to-moderate from when the innovation is major. In the former case, the optimality of each rollover strategy is fully determined by the innovation level of the product introduced in period two and the customers' discounter factor; whereas in the latter case, the single rollover strategy always dominates the dual rollover strategy. Moreover, the firm's pricing policy under single rollover is strongly dependent on the innovation level of the product introduced in period two. Whereas under dual rollover, the firm's pricing decision is independent of the innovation level. Finally, it is to be noted that the findings in this research are mainly contingent on the model framework.
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DOI:
10.2139/ssrn.1010268
发表时间:
2007-04
期刊:
Microeconomic Theory eJournal
影响因子:
--
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