Earticle

초록

영어

Trade shows are popular venues for marketers’ pre-launch demonstrations of advanced-stage product concepts, and frequently induce buyers to wait for new models rather than purchase current models without delay. In this study, we develop a two-period model to analyze the inter-temporal strategic interactions in a firm’s pricing strategy for the old and new models when a product concept demonstration is utilized. Our analysis focuses on the interplay of product positioning and product concept demonstrations that induces varying degrees of purchase delays and shapes the firm’s dynamic pricing strategy. We show that pre-launch product concept demonstrations increase profits only when the new model has sufficient horizontal or vertical differentiation from the existing model, and that the mechanisms leading to a profitable concept demonstration are quite different between the two types of differentiations. Product concept demonstrations induce greater volumes of delayed purchases at very low or very high levels of horizontal differentiation, exhibiting a U-shaped pattern, and lead to a lower price for the new model in comparison to its absence. We also find that a simpler pricing policy may dominate more complex pricing strategies when the old model continues to be available on the market along with the new model.

키워드

저자

• Taewan Kim [ Konkuk University ]
• Eunkyu Lee [ Syracuse University ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국마케팅관리학회 학술대회

• 간기

  부정기

• 수록기간

  2018~2025

• 십진분류

  KDC 325 DDC 330