Managing Successive Generation Product Diffusion in the Presence of Strategic Consumers

Frequent new product release and technological uncertainty about the release time pose significant challenges for firms to manage successive generation of products. On the one hand, strategic consumers may delay their purchase decision and substitute the earlier generation with the newer generation...

Full description

Saved in:
Bibliographic Details
Main Author: GUO, Zhiling
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2011
Subjects:
Online Access:https://ink.library.smu.edu.sg/sis_research/1878
https://ink.library.smu.edu.sg/context/sis_research/article/2877/viewcontent/cist2011_submission_51.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
id sg-smu-ink.sis_research-2877
record_format dspace
spelling sg-smu-ink.sis_research-28772016-01-19T11:09:34Z Managing Successive Generation Product Diffusion in the Presence of Strategic Consumers GUO, Zhiling Frequent new product release and technological uncertainty about the release time pose significant challenges for firms to manage successive generation of products. On the one hand, strategic consumers may delay their purchase decision and substitute the earlier generation with the newer generation product. On the other hand, the firm must fully anticipate consumer reactions and take into account the effect of their strategic behavior on product pricing and successive generation product diffusion. This paper proposes a prediction market to forecast new product release. We show that the market information aggregation mechanism can improve forecast accuracy of new product launch. Better forecasting increases consumer surplus, firm revenue, and social welfare. 2011-11-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/1878 https://ink.library.smu.edu.sg/context/sis_research/article/2877/viewcontent/cist2011_submission_51.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Computer Sciences Management Information Systems
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Computer Sciences
Management Information Systems
spellingShingle Computer Sciences
Management Information Systems
GUO, Zhiling
Managing Successive Generation Product Diffusion in the Presence of Strategic Consumers
description Frequent new product release and technological uncertainty about the release time pose significant challenges for firms to manage successive generation of products. On the one hand, strategic consumers may delay their purchase decision and substitute the earlier generation with the newer generation product. On the other hand, the firm must fully anticipate consumer reactions and take into account the effect of their strategic behavior on product pricing and successive generation product diffusion. This paper proposes a prediction market to forecast new product release. We show that the market information aggregation mechanism can improve forecast accuracy of new product launch. Better forecasting increases consumer surplus, firm revenue, and social welfare.
format text
author GUO, Zhiling
author_facet GUO, Zhiling
author_sort GUO, Zhiling
title Managing Successive Generation Product Diffusion in the Presence of Strategic Consumers
title_short Managing Successive Generation Product Diffusion in the Presence of Strategic Consumers
title_full Managing Successive Generation Product Diffusion in the Presence of Strategic Consumers
title_fullStr Managing Successive Generation Product Diffusion in the Presence of Strategic Consumers
title_full_unstemmed Managing Successive Generation Product Diffusion in the Presence of Strategic Consumers
title_sort managing successive generation product diffusion in the presence of strategic consumers
publisher Institutional Knowledge at Singapore Management University
publishDate 2011
url https://ink.library.smu.edu.sg/sis_research/1878
https://ink.library.smu.edu.sg/context/sis_research/article/2877/viewcontent/cist2011_submission_51.pdf
_version_ 1770571634195824640