Showing 1 - 10 of 109
This paper defines a unique type of product or service offering, termed , and analyzes a novel selling strategy, termed (PS). A probabilistic good is not a concrete product or service but an offer involving a probability of getting any one of a set of multiple distinct items. Under the...
Persistent link: https://www.econbiz.de/10008787630
many products to have in the line and the physical characteristics of each product, quality. Each product may or may not be … composed of different market segments that value quality differently: Some market segments are willing to pay more for quality … segments. Another way of seeing the problem is that the channel pricing distortions increase the cannibalization forces across …
Persistent link: https://www.econbiz.de/10008788002
first discuss NAP's decision context and describe the model we proposed for developing NAP's optimal pricing policies for … for developing a new business model and how it used the insights derived from the study to set pricing policies and … monitor sales performance as a function of pricing. Finally, we perform validation of the model and the implemented policies …
Persistent link: https://www.econbiz.de/10008788164
discrimination), under general conditions it is optimal to advertise so that one has a greater proportion of sales of a lower-quality … product than if advertising had no cost. This situation also allows the firm to charge a lower price for the high-quality … product and offer a higher quality of the low-quality product than it would if advertising were without cost. …
Persistent link: https://www.econbiz.de/10008787793
increase the total user base and is superior to free licensing when the innovator's cost of producing a low-quality product is … quality or a low cost, regardless of network effect. Finally, strong network effects make a lump-sum fee more profitable than …
Persistent link: https://www.econbiz.de/10008787868
A central problem in marketing is: how should the firm position (reposition) and price a line of related (substitute) products in order to maximize profits (or welfare). We formulate this problem faced by a monopolist as a mathematical program, outline how to obtain the market data from a sample...
Persistent link: https://www.econbiz.de/10008787885
This paper shows that when the alternatives offered to consumers span the preference space (as it would be chosen by a firm), search or evaluation costs may lead consumers not to search and not to choose if too many or too few alternatives are offered. If too many alternatives are offered, then...
Persistent link: https://www.econbiz.de/10008787904
An accurate understanding of the structure of competition is important in the formulation of many marketing strategies. For example, in new product launch, product reformulation, or positioning decisions, the strategist wants to know which of his competitors will be most affected and hence most...
Persistent link: https://www.econbiz.de/10008788038
problem in which a manufacturer segments the market on quality attributes and offers products that are partial substitutes … and may at the same time lead to higher quality products. Further, a less efficient production technology does not … technology, the demand cannibalization problem may distort product quality upward or the number of products upward, which is …
Persistent link: https://www.econbiz.de/10008788158
When should a firm introduce a line extension or improved product in order to maximize total profits from the original product and the line extension? We identify three critical issues which affect the answer to this question: the interrelationship of sales of the two products because of...
Persistent link: https://www.econbiz.de/10008789712