Durable Goods Rollover Strategy for Product Depreciation

DOI

10.2991/assehr.k.200428.084How to use a DOI?

Keywords

single rollover, dual rollover, product depreciation, strategic consumer

Abstract

This article studies the impact of product depreciation on the product rollover and pricing strategies of durable goods manufacturers under different degrees of product innovation. Based on strategic consumers, the article divides product innovation into two cases: general innovation and major innovation. It analyzes the balanced decision of the firm under different levels of innovation and different rollover strategies, and then draws the optimal rollover strategy for each level of innovation. The research finds that: in general innovation, the equilibrium decision of the firm is affected by the level of product innovation and product depreciation. At the same time, when choosing single product rollover strategy, we must carefully consider the impact of product innovation levels. For major innovations, the single rollover strategy is always better than the dual rollover strategy. In addition, the dual rollover is not affected by the level of product innovation.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Wang Ning
AU  - Ye Taofeng
PY  - 2020
DA  - 2020/05/01
TI  - Durable Goods Rollover Strategy for Product Depreciation
BT  - Proceedings of the 6th International Conference on Humanities and Social Science Research (ICHSSR 2020)
PB  - Atlantis Press
SP  - 385
EP  - 389
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200428.084
DO  - 10.2991/assehr.k.200428.084
ID  - Ning2020
ER  -