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Author: | Dearden, J. Lilien, G. Yoon, E. |
Title: | Marketing and production capacity strategy for non-differentiated products: winning and losing at the capacity cycle game |
Journal: | International Journal of Research in Marketing
1999 : FEB, VOL. 16:1, p. 57-74 |
Index terms: | RESEARCH MARKETING GAMES |
Language: | eng |
Abstract: | Customer satisfaction and supplier loyalty in markets where product are mainly undifferentiated are heavily affected by assurance of supply. Markets manage production capacity in such markets to assure supply, but the resulting capacity competition leads to cycles of over-capacity followed by capacity deletions, which lead to under-capacity. The authors investigate some of the possible causes of this form of industry behavior in two ways. |
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