Competition and market dynamics in duopoly: the effect of switching costs

Yang, Yang; Wu, Cheng-Hung

doi:10.1007/s00291-022-00669-w

OR Spectrum

2022

DOI: 10.1007/s00291-022-00669-w

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Competition and market dynamics in duopoly: the effect of switching costs

Yang Yang

Cheng-Hung Wu

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Cited by 3 publications

References 41 publications

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Randomized pricing of a storable good in the presence of consumer stockpiling

Gökgür,

Karabatı

2023

OR Spectrum

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Randomized pricing of a storable good in the presence of consumer stockpiling

Gökgür,

Karabatı

2023

OR Spectrum

View full text Add to dashboard Cite

Predicting and optimizing marketing performance in dynamic markets

Guhl,

Paetz,

Wagner

et al. 2024

OR Spectrum

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Our world is turbulent: ecological, social, political, technological, economic, and competitive business environments change constantly. Consumers have changing preferences, learn, build trust in brands, adopt new products, and are persuaded by advertising. Firms innovate and engage in and respond to competition. Exogenous events, such as changes in economic conditions and regulations, as well as human crises, also cause major shifts in markets. This special issue focuses on novel Marketing data and modern methodologies from different fields (e.g., Operations Research (OR), Statistics, Econometrics, and Computer Science), which help firms understand, utilize, and respond to market dynamics more efficiently. Here we propose a framework comprising analytical methods and data for dynamic markets that is useful for structuring research in this domain. Next, we summarize the history of the Marketing/OR interface. We highlight studies at the Marketing/OR interface from the last decade focusing specifically on dynamic markets and use our proposed framework to identify trends and gaps in the extant literature. After that, we present and summarize the papers of the current special issue and their contributions to the field against the backdrop of our framework and the trends in the literature. Finally, we conclude and discuss which future Marketing/OR research could tackle important issues in dynamic markets.

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Optimal coupon distribution strategy of retailers considering cross-industry joint promotion

Li,

Peng

2024

APJML

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PurposeEmpirical evidence indicates that cross-industry cooperation is a popular promotional format in which retailers can engage in market resource sharing and exchange. Although many retailers participate in cross-industry joint promotion by issuing coupons to each other, the degree of correlation between cross-industry products and the consumer switching behavior can significantly impact the promotional effect of these coupons. The purpose of this paper is to investigate the effectiveness of the cross-industry joint promotion and the optimal coupon distribution strategy of retailers based on these two factors.Design/methodology/approachThis paper analyzes the four cases of no cross-industry joint promotion, unilateral issuance of coupons and bilateral issuance of coupons, and discusses the best coupon distribution strategy for retailers based on the degree of product correlation and consumer switching costs. Furthermore, the applicability of the coupon distribution strategy is enhanced by incorporating numerical analysis.FindingsThe results show that the retailers can improve their income level by implementing cross-industry joint promotion. The retailers always price higher when only their promotional partners distribute coupons. When the degree of product correlation and consumer switching costs are high, the retailers issuing cross-industry coupons bilaterally is the optimal joint promotion strategy. When the degree of product correlation or consumer switching costs are low, the low-value retailer issuing coupons can achieve a win-win situation for retailers.Originality/valueThis paper addresses an interesting and practical issue related to the coupon distribution strategies based on the product correlation and consumer switching behavior, thereby providing new theoretical value and managerial implications for retailers to choose the optimal joint promotion strategy under different market conditions.

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Competition and market dynamics in duopoly: the effect of switching costs

Cited by 3 publications

References 41 publications

Randomized pricing of a storable good in the presence of consumer stockpiling

Randomized pricing of a storable good in the presence of consumer stockpiling

Predicting and optimizing marketing performance in dynamic markets

Optimal coupon distribution strategy of retailers considering cross-industry joint promotion

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