search query: @author Doraszelski, U. / total: 3
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| Author: | Doraszelski, U. Draganska, M. |
| Title: | Market segmentation strategies of multiproduct firms |
| Journal: | Journal of Industrial Economics
2006 : MAR, VOL. 54:1, p. 125-149 |
| Index terms: | market segmentation strategy competition products companies models |
| Language: | eng |
| Abstract: | This study analyzes a multiproduct duopoly asking whether firms should offer general purpose products (hereafter as: pd./pds.) or tailor their offerings to fit specific consumer needs. Offering (here as: off-g.) a targeted pd. has 2 effects: utility (here as: ut-y.) increases for some consumers due to increased (as: incd.) fit, whereas ut-y. decreases for others due to incd. misfit. It is shown that in addition to the degree of fit and misfit, the intensity of competition and the fixed cost of off-g. an additional pd. determine firms' market segmentation strategies. |
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