Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6898447 | European Journal of Operational Research | 2012 | 11 Pages |
Abstract
⺠We investigate the impact of external options, represented by reservation utility, on product line design and introduction sequence. ⺠We find that heterogeneous reservation utility defines the relative attractiveness of segments and corresponding product line. ⺠Reservation utility makes it more favorable to introduce products sequentially rather than simultaneously. ⺠Aggregating segments is an effective way to mitigate cannibalization when it becomes too difficult to manage with different values of reservation utility across multiple segments. ⺠Introducing products in a non-monotone order of quality can improve profit from simultaneous introduction.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Paul Lacourbe,