The Strategy of New Product Introduction in Durable Goods with Secondary Market : Application of the Optimization Method to Supply Chain Problem
Joint Authors
Source
Journal of Applied Mathematics
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-03-13
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
The aim of this paper is to address how the secondary market affects the strategy of the manufacturer’s new product introduction by using the optimization method.
To do so, we develop a two-period model in which a monopolistic manufacturer sells its new durable products directly to end consumers in both periods, while an entrant operates a reverse channel selling used products in the secondary market.
We assume that the manufacturer launches a higher quality product in the second period for the technological innovation.
We find that the secondary market can actually increase the manufacturer’s profitability and drives the new product introduction in the second period.
We also derive the effect of the durability and the degree of quality improvement on the pricing of supply chain partners.
American Psychological Association (APA)
Zhao, Pei& Xiong, Zhongkai. 2014. The Strategy of New Product Introduction in Durable Goods with Secondary Market : Application of the Optimization Method to Supply Chain Problem. Journal of Applied Mathematics،Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-480171
Modern Language Association (MLA)
Zhao, Pei& Xiong, Zhongkai. The Strategy of New Product Introduction in Durable Goods with Secondary Market : Application of the Optimization Method to Supply Chain Problem. Journal of Applied Mathematics No. 2014 (2014), pp.1-10.
https://search.emarefa.net/detail/BIM-480171
American Medical Association (AMA)
Zhao, Pei& Xiong, Zhongkai. The Strategy of New Product Introduction in Durable Goods with Secondary Market : Application of the Optimization Method to Supply Chain Problem. Journal of Applied Mathematics. 2014. Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-480171
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-480171