Customization competition between branded firms: Continuous extension of product line from core product
Customization competition between branded firms: Continuous extension of product line from core product
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DOI：
10.1016/j.ejor.2012.10.001
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发表时间：
2013-03
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通讯作者：
Noritsugu Takagoshi;Nobuo Matsubayashi
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作者：
Noritsugu Takagoshi;Nobuo Matsubayashi
我们用博弈论的方法研究了两个品牌企业之间的产品定制竞争。企业生产产品有两个属性：一个属性表示产品的“功能”或“设计”特征，另一个属性表示产品的“味道”或“味道”，这反映了消费者的品牌/品味偏好。两家品牌公司都有自己特定的核心产品，我们的定制被定义为他们的产品线从核心产品到只沿着功能属性的持续延伸。特别是，我们允许核心产品的不对称头寸，这可能会在公司之间创造头寸优势/劣势。我们假设，消费者在丰富的产品种类中找到他们最喜欢的商品时会产生选择成本，而企业在扩展产品线时会产生定制成本。我们首先证明，在均衡中，品牌企业应该从根本上采用他们的定制来尽可能地覆盖市场的中心空间，而不考虑竞争对手的核心产品的位置。因此，核心产品的位置有助于创造竞争优势：当一个企业的核心产品比竞争对手更接近市场中心时，其定制总是可以覆盖更大范围的市场中心空间，同时保持其定制程度小于竞争对手。此外，我们还展示了单位成本改进的一些启示：在短期内，企业最好专注于单位选择成本的提高，而不是单位定制成本的提高。相反，从长期来看，两家企业都可以从单位定制成本的提高中受益。
We study a competition of product customization between two branded firms by a game-theoretic approach. Firms produce products with two attributes: one attribute indicates a characteristic with regard to “function” or “design” of a product and the other indicates “taste” or “flavor” of the product, which reflects consumers’ brand/taste preferences. Two branded firms have their own specific core products and our customization is defined as a continuous extension of their product line from the core product only along the “function” attribute. In particular, we allow asymmetric positions of core products, which may create the position advantage/disadvantage between firms. We suppose that consumers incur their selection costs with regard to finding their most favorable item among a rich variety of products and firms incur their customizing costs with regard to extending their product lines. We first show that in the equilibrium, branded firms should fundamentally adopt their customizations to cover the center space in the market as far as possible, regardless of the position of the competitor’s core product. Therefore, the position of the core product contributes to the creation of a competitive advantage: when one firm’s core product is located more closely to the center of the market than the competitor’s, its customization can always cover more range of the center space in the market, while keeping its degree of customization smaller than the competitor’s. Furthermore, we show some implications of unit-cost improvement: in a short run, a firm is better off concentrating on the improvement of the unit selection cost rather than the unit customizing cost. In contrast, in a long run, both firms can benefit from the improvement of the unit customizing cost.