9
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Price and durability decisions on successive generations of electronic durable goods under incremental innovation

, , &
Received 18 Apr 2023, Accepted 24 May 2024, Published online: 05 Jun 2024

References

  • Amankwah-Amoah, J. 2017. “Integrated vs. Add-On: A Multidimensional Conceptualisation of Technology Obsolescence.” Technological Forecasting and Social Change 116: 299–307.
  • Anderson, C. K., and J. G. Wilson. 2003. “Wait or Buy? The Strategic Consumer: Pricing and Profit Implications.” Journal of the Operational Research Society 54 (3): 299–306.
  • Aviv, Y., and A. Pazgal. 2008. “Optimal Pricing of Seasonal Products in the Presence of Forward-Looking Consumers.” Manufacturing & Service Operations Management 10 (3): 339–359.
  • Bala, R., and S. Carr. 2009. “Pricing Software Upgrades: The Role of Product Improvement and User Costs.” Production and Operations Management 18 (5): 560–580.
  • Celebrating 10 Years of iPhones: 63% of all iPhones Ever Sold Are Still in Use [EB/OL]. 2017. https://newzoo.com/insights/articles/63-percent-of-all-iphones-ever-sold-still-in-use/.
  • Choudhary, V., A. Ghose, T. Mukhopadhyay, and U. Rajan. 2005. “Personalized Pricing and Quality Differentiation.” Management Science 51 (7): 1120–1130.
  • Desai, P. S., O. Koenigsberg, and D. Purohit. 2007. “Research Note—The Role of Production Lead Time and Demand Uncertainty in Marketing Durable Goods.” Management Science 53 (1): 150–158.
  • Dhebar, A. 1994. “Durable-goods Monopolists, Rational Consumers, and Improving Products.” Marketing Science 13 (1): 100–120.
  • Fang, C. C. 2020. “Optimal Price and Warranty Decision for Durable Products in a Competitive Duopoly Market.” Reliability Engineering & System Safety 203: 107068.
  • Farshbaf-Geranmayeh, A., and G. Zaccour. 2021. “Pricing and Advertising in a Supply Chain in the Presence of Strategic Consumers.” Omega 101: 102239.
  • Gershoff, A. D., R. Kivetz, and A. Keinan. 2012. “Consumer Response to Versioning: How Brands’ Production Methods Affect Perceptions of Unfairness.” Journal of Consumer Research 39 (2): 382–398.
  • Gowrisankaran, G., and M. Rysman. 2012. “Dynamics of Consumer Demand for new Durable Goods.” Journal of Political Economy 120 (6): 1173–1219.
  • Grewal, R., R. Mehta, and F. R. Kardes. 2004. “The Timing of Repeat Purchases of Consumer Durable Goods: The Role of Functional Bases of Consumer Attitudes.” Journal of Marketing Research 41 (1): 101–115.
  • Guiltinan, J. 2009. “Creative Destruction and Destructive Creations: Environmental Ethics and Planned Obsolescence.” Journal of Business Ethics 89 (1): 19–28.
  • Hu, S., S. X. Zhu, and K. Fu. 2023. “Optimal Trade-in and Refurbishment Strategies for Durable Goods.” European Journal of Operational Research 309 (1): 133–151.
  • Kirkizoğlu, Z., and Ö Karaer. 2022. “After-sales Service and Warranty Decisions of a Durable Goods Manufacturer.” Omega 113: 102719.
  • Kornish, L. J. 2001. “Pricing for a Durable-Goods Monopolist Under Rapid Sequential Innovation.” Management Science 47 (11): 1552–1561.
  • Krishnan, V., and K. Ramachandran. 2011. “Integrated Product Architecture and Pricing for Managing Sequential Innovation.” Management Science 57 (11): 2040–2053.
  • Kumar, R., and S. K. Kaushal. 2019. “A Study of Factors Affecting Consumer Behaviour Towards Electronic Durable Goods.” Indian Journal of Marketing 49 (7): 35–48.
  • Kuppelwieser, V. G., P. Klaus, A. Manthiou, and O. Boujena. 2019. “Consumer Responses to Planned Obsolescence.” Journal of Retailing and Consumer Services 47: 157–165.
  • Leading Apple iPhone shares based on web usage worldwide from 2019 to 2020 [EB/OL]. 2020. https://www.statista.com/statistics/626631/smartphone-market-share-by-device-worldwide/.
  • Lee, J., and N. Berente. 2013. “The era of Incremental Change in the Technology Innovation Life Cycle: An Analysis of the Automotive Emission Control Industry.” Research Policy 42 (8): 1469–1481.
  • Li, H., and S. C. Graves. 2012. “Pricing Decisions During Inter-Generational Product Transition.” Production and Operations Management 21 (1): 14–28.
  • Li, J., H. Wang, Z. Deng, W. Zhang, and G. Zhang. 2022. “Leasing or Selling? The Channel Choice of Durable Goods Manufacturer Considering Consumers’ Capital Constraint.” Flexible Services and Manufacturing Journal 34 (2): 317–350.
  • Liu, J., X. Zhai, and L. Chen. 2019. “Optimal Pricing Strategy Under Trade-in Program in the Presence of Strategic Consumers.” Omega 84: 1–17.
  • Montez, J. 2013. “Inefficient Sales Delays by a Durable-Good Monopoly Facing a Finite Number of Buyers.” The RAND Journal of Economics 44 (3): 425–437.
  • Okada, E. M. 2001. “Trade-ins, Mental Accounting, and Product Replacement Decisions.” Journal of Consumer Research 27 (4): 433–446.
  • Okada, E. M. 2006. “Upgrades and New Purchases.” Journal of Marketing 70 (4): 92–102.
  • Ray, S., T. Boyaci, and N. Aras. 2005. “Optimal Prices and Trade-in Rebates for Durable, Remanufacturable Products.” Manufacturing & Service Operations Management 7 (3): 208–228.
  • Seidl, A., R. F. Hartl, and P. M. Kort. 2019. “A Multi-Stage Optimal Control Approach of Durable Goods Pricing and the Launch of New Product Generations.” Automatica 106: 207–220.
  • Sim, J., J. Oh, and W. T. Huh. 2021. “Optimal pricing policy for successive product generations in the presence of value uncertainty”. Available at SSRN 3851046.
  • Su, X., and F. Zhang. 2009. “On the Value of Commitment and Availability Guarantees When Selling to Strategic Consumers.” Management Science 55 (5): 713–726.
  • Swan, P. L. 1972. “Optimum Durability, Second-Hand Markets, and Planned Obsolescence.” Journal of Political Economy 80 (3, Part 1): 575–585.
  • Yin, S., S. Ray, H. Gurnani, and A. Animesh. 2010. “Durable Products with Multiple Used Goods Markets: Product Upgrade and Retail Pricing Implications.” Marketing Science 29 (3): 540–560.
  • Zhang, Y., and J. Zhang. 2017. “Strategic Customer Behavior with Disappointment Aversion Customers and two Alleviation Policies.” International Journal of Production Economics 191: 170–177.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.