Optimal pricing of successive generations of product advances

نویسندگان

  • V. Padmanabhan
  • Frank M. Bass
چکیده

We obtain the optimal pricing policy of a monopolist marketing successive generations of product advances. We characterize the impact of foresight regarding entry of the second generation product and the technological substitution and market expansion created by the introduction of the second generation product on the optimal pricing policy of the monopolist. We also obtain the optimal pricing policies of the producers in situations where the successive generations of product advances are marketed by independent producers. By contrasting these policies with those of the monopolist marketing successive generations of product advances, we provide insight on the differential impact of foresight, technological substitution and market expansion on the optimal pricing policies of the producers.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Optimal Control Policy for Advertising and Pricing of Two Generation Durable Product in Segmented Market

One of the most remarkable developments in marketing is the amount of interest shown in market segmentation and an important strategy in modern marketing as it provides an insight into the target pricing and advertising policies for technological products. Developers of technological products keep introducing successive generations of product based on latest technology, either to continue to be...

متن کامل

Versions, Successive Generations and Pricing Strategy in Software Markets: Theory and Evidence

Pricing and product line strategies based on versioning and introducing successive generations are widely used by software manufacturers. Such product release and renewal strategies, which aim to expand market share and implement more e¤ective price discrimination, also expose …rms to the risk of cannibalization of their higher quality products by lower quality versions, and of current generati...

متن کامل

Optimal Introduction Timing Policy for a Successive Generational Product

Globalized economy has led firms to introduce new innovations in the market quite frequently. Optimal Introduction time is an important strategic decision for firms because an early introduction may not take off as customers; channel members and other required partners might not be receptive enough, on the other hand too late an entry results in loss of opportunity for the firm. The decision is...

متن کامل

Optimal production and marketing planning with geometric programming approach

One of the primary assumptions in most optimal pricing methods is that the production cost is a non-increasing function of lot-size. This assumption does not hold for many real-world applications since the cost of unit production may have non-increasing trend up to a certain level and then it starts to increase for many reasons such as an increase in wages, depreciation, etc. Moreover, the prod...

متن کامل

Joint Pricing and Inventory Control for Seasonal and Substitutable Goods Mentioning the Symmetrical and Asymmetrical Substitution

Nowadays many well-known firms may produce similar products at different prices in order to remain in the competitive environment. The price differences may cause substitution condition which motivates the customers to substitute the similar cheaper product with an expensive one leading to an environment which is known as “customer-based price driven substitution”. This research proposes a new ...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2011