Differential pricing and production strategies for heterogeneous products under cannibalization and promotional effects

Liu, Aijun; Jing, Meiting; Miao, Jie; Li, Zengxian; Yang, Yun

doi:10.1016/j.jmse.2022.07.001

Cited by 2 publications

(3 citation statements)

References 44 publications

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“…Liu and Zhang (2017) found that the dual rollover strategy offers advantages in enhancing the market share of an enterprise's products, while the single rollover strategy leads to higher profits. Furthermore, the dual rollover strategy intensifies competition between products, resulting in lower equilibrium prices for new products compared to the single roller strategy (Liu et al, 2022). Yu et al (2016) pointed out that there is no one‐size‐fits‐all approach to the process of rolling out old and new products; rather, the roller strategy is contingent upon the specific market environment in which the enterprise operates.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The impact of the cannibalization effect and its importance to enterprises have been underscored in numerous studies (Okorie et al, 2021; Salema et al, 2007). For instance, Liu et al (2022) investigated the influence of the cannibalization effect on the pricing and production strategies of manufacturers and recyclers, revealing that it can lead to a decrease in demand and prices for new products while increasing the demand and prices for remanufactured products. Jiang and Jain (2012) noted that more prevalent “leapfrogging” behavior among consumers makes the cannibalization effect more pronounced.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Contemporary scholars tend to focus on enterprises' product‐launch strategies in monopolistic scenarios (Gong et al, 2015; Niu & Xia, 2021; Liu et al, 2022; Tan & Leng, 2023). For instance, Li and Liang (2023) examined the pricing decisions surrounding single oligopoly iteration products.…”

Section: Literature Reviewmentioning

confidence: 99%

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Product rolling strategies in competitive scenarios based on differential games

Li,

Tan

2024

Manage Decis Econ

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In competitive scenarios, we analyze the optimal pricing, launch timing, and influencing factors of new products by establishing three differential game models. The findings indicate that (1) the depreciation rate of old products directly impacts the pricing strategies of advantaged and disadvantaged enterprises. Enterprises with competitive advantages tend to set higher prices for new products when old products depreciate faster, while those with fewer advantages adjust their pricing strategies by initially increasing prices for the latest prices and eventually reducing them. (2) The rate of old‐product depreciation also affects the timing of new‐product launches. Advantaged enterprises tend to delay their product launches when the impact of the new product on the old ones is significant, while disadvantaged enterprises opt for earlier launches under similar circumstances. (3) The technological level of the new product influences the timing of its launch for both advantaged and disadvantaged enterprises. Higher technological levels prompt advantaged enterprises to launch earlier and disadvantaged enterprises tend to follow suit. (4) High levels of innovation in new products by advantaged enterprises prompt earlier launches by disadvantaged enterprises. These results may offer valuable insights for enterprises in formulating effective product rollover strategies.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Product rolling strategies in competitive scenarios based on differential games

Li,

Tan

2024

Manage Decis Econ

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Contract design for a closed-loop supply chain considering information asymmetry of remanufacturing process innovation

Zhao

MAO

2023

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PurposeAsymmetric cost information exists between a supplier and a manufacturer regarding the manufacturer's process innovation for remanufacturing (PIR), which may hurt the supplier's profit. The authors therefore seek to develop a menu of nonlinear pricing contracts for channel information sharing.Design/methodology/approachBased on principal–agent theory, the supplier, acting as a Stackelberg leader, designs a menu of nonlinear pricing contracts to impel the manufacturer to disclose its private cost information on PIR (i.e. PIR efficiency). In addition, the authors compare the equilibrium outcomes under asymmetric and symmetric information to examine the effects of asymmetric PIR information on the production policies and profits of the supplier and the manufacturer.FindingsThe proposed contract menu encourages th4e manufacturer to spontaneously share PIR efficiency information with the supplier. Asymmetric PIR information may distort the output of new products upward or downward, but the output of remanufactured products may only be distorted downward. In addition, the manufacturer with high PIR efficiency gains information rent, and interestingly, the increase in the probability of low PIR efficiency amplifies its information rent. Finally, an asymmetric information environment may increase the threshold for the manufacturer to enter remanufacturing.Originality/valueThe authors probe the issue of the supplier's contract design by jointly considering remanufacturing, process innovation and information asymmetry. The paper expands the influencing mechanism of process innovation information in the remanufacturing field. The authors also observe new results that may offer guidance to decision makers.

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Differential pricing and production strategies for heterogeneous products under cannibalization and promotional effects

Cited by 2 publications

References 44 publications

Product rolling strategies in competitive scenarios based on differential games

Product rolling strategies in competitive scenarios based on differential games

Contract design for a closed-loop supply chain considering information asymmetry of remanufacturing process innovation

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