Market segmentation, cannibalization, and the timing of product introductions

Article Abstract:

The relative advantages of sequential and simultaneous product introductions are examined using a model that allows a seller to choose one of these two product introduction strategies in a situation where the seller has to cater to separate market segments that require different quality valuations of the new product being introduced. The model shows that sequential product introduction is the better approach when cannibilization is a key issue. On the other hand, the model also shows that simultaneous product introductions are more applicable in situations where the seller is unable to pre-commit to a set future price and product design.

Research, Management, Product development, Market segmentation

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Why do retailers deal? An inventory explanation

Article Abstract:

Price deals, or price specials, on nonperishable goods can, under certain circumstances, be beneficial for the retailer as well as the consumer because the inventory carrying cost is passed on to the consumer. It is assumed in the analysis that consumers alter their purchasing, but not their consumption, patterns because of the sales. A classical economic order quantity (EOQ) model is used to represent the retailer's environment, and the optimal behavior of both the retailers and the customers are derived.

Analysis, Prices and rates, Retail industry, Retail trade, Retail stores, Stores, Inventory control

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