search query: @author Png, I. P. L. / total: 4
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| Author: | Moorthy, K. S. Png, I. P. L. |
| Title: | Market segmentation, cannibalization, and the timing of product introduction |
| Journal: | Management Science
1992 : MAR, VOL. 38:3, p. 345-359 |
| Index terms: | MARKET SEGMENTATION NEW PRODUCTS INNOVATION PRODUCT DIFFERENTIATION MARKETS |
| Language: | eng |
| Abstract: | Consider a seller who faces two customer segments with differing valuations of guality of a durable product. Should he introduce two differentiated products at once or one at a time? Under the simultaneous strategy the lower quality would cannibalize demand for the higher quality. To reduce cannibalization, the seller could lower the quality of the low-end model and reduce the price of the high-end one. Alternately, he could increase the quality of the low-end model but delay its release. Sequential introduction, however, would mean that profits from the low-end model arrive later. It is shown that sequential introduction is better than simultaneous introduction when cannibalization is a problem. |
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