Delayed Product Introduction

We investigate the incentives of a monopolistic seller to delay the introduction of a new and improved version of his product. By analyzing a three-period model, we show that the seller may prefer to delay introducing a new product, even though the enabling technologies for the product are already available. The underlying motivation is analogous to that found in the durable goods monopolist literature – the seller suffers from a time inconsistency problem that causes his old and new products to cannibalize each other. Without the ability to remove existing stock of the old product from the market, shorten product durability, or pace research and development (R&D), he may respond by selling the new product later. We characterize the equilibria with delayed introduction, and study their changes with respect to market and product parameters. In particular, we show that delayed introduction could occur regardless of whether the seller can offer upgrade discounts to consumers, that instead, it is related to quality improvement brought about by the new product, durabilities, and discount factors. Further, we show that delayed introduction could bring socially efficient outcomes as well. Based on the insights of the model, we provide practical suggestions on pricing and policies

Technology Timing and Pricing In the Presence of an Installed Base

This paper studies a vendor.s timing and pricing strategies to tackle its own installed base when selling a newly improved product. We characterize the market with either a partly- or fully- covered installed base, consumers. relative willingness to pay for the newly improved version of the product, and their relative payoffs from delayed purchase. Instead of using the conventional assumption of constant consumer reservation price, we propose that if consumers already own an existing (old) version of a durable product, their willingness to purchase the newly improved version would increase over time. This effect, interweaving with consumer heterogeneity on valuation of quality and purchase history, may enable perfect intertemporal price discrimination (Salant 1989). We find that upgrade pricing may not be able to differentiate consumers with different purchase history when consumer heterogeneity is sufficiently high. Instead, the vendor would maximize its profit through intertemporal price discrimination, delayed product introduction, or pooling pricing. By overcoming the intractability of studying delayed product introduction in a market with heterogeneous consumers, this study analytically confirms Fishman and Rob.s conjecture (2000) that heterogeneity in consumers. valuation of quality may discourage a vendor to launch a new product. Particularly, consumers. anticipation of future price reduction can lead to delayed product introduction even when the extent of quality improvement embodied in the new product is high.New product introduction, intertemporal price discrimination, delayed product introduction, installed base, upgrade policy

When Is a Preannounced New Product Likely to Be Delayed?

Consider that a firm announces a deadline for a new product introduction. Conditional on such a preannouncement, how must an external observer evaluate whether the product will be delayed beyond that deadline? Using data collected from managers in the computer hardware, software, and telecommunications industries, the authors present an analysis that demonstrates that delays in new product introductions beyond preannounced deadlines can be jointly explained by factors related to (1) the firm's motivations to delay the product, (2) the presence of constraints that prevent delay (or the availability of opportunities to delay the product), and (3) the firm's abilities pertaining to product development

Unfortunately The Introduction Of Our New Product Will Be Delayed: An Exploratory Examination Of Factors That Influence A Firm To Announce Changes In Its New Product Plans

New product preannouncement research investigates formal and deliberate communications by a firm regarding its future new product introductions (e.g., types of new products, new product attributes, plans for distribution, planned launch date). However, previous studies have primarily focused on communication related to the firm’s intent to introduce a new product and largely ignored communications regarding changes in their status, such as launch delays as well as cancellation of the new product introduction. The goal of this study is to address this shortfall by examining antecedents factors  influencing a preannouncing firm (i.e., one that preannounces its new products) to also announce changes in to its new product introduction plans (NPCs); specifically, delays in the introduction of a new product or its cancellation. This topic is particularly relevant given the importance that recent studies have placed on the investigation of false new product preannouncements or bluffs, especially in the software industry where they are termed vaporware.  Furthermore, in the wake of the many recent high-profile corporate scandals (e.g., Enron and Tyco), a growing emphasis on corporate disclosure, particularly regarding performance shortfalls (e.g., new product delays and cancellations), also highlights the need for further research on corporate communication regarding changes to new product introduction plans.  Additionally, unlike most extant preannouncement research that attempts to examine differences between preannouncers and non-preannouncers, our study only examines firms that preannounce their new product introductions and then, goes further, by examining post-preannouncement behavior. In developing our framework, we propose five antecedents that motivate a preannouncing firm’s propensity, when the situation arises, to issue announcements regarding delays in a new product introduction or its cancellation. Additionally, we highlight the use of NPCs as strategic marketing communication tools that can continually inform and influence a wide range of target audiences (e.g., buyers, employees, supply chain participants, investors, and business media). The hypotheses are tested via factor score regression with a sample of 221 U.S. – based manufacturers. Our findings indicate that it is not the firm’s desire to communicate in a general sense through information sharing nor its concerns regarding competitors that motivates preannouncing firms to issue NPCs. Instead, the preannouncing firm’s desire to build its reputation, the innovativeness of its industry, and the degree to which buyers must make substantial pre-purchase investments are the main drivers of communication regarding changes to its new product introduction plans. As a set, these findings are particularly interesting as they indicate that the preannouncing firm’s desire to reduce uncertainty, often in its own favor, underlies its decision to issue NPCs

Economic modelling using constraint logic programming

This paper investigates the use of constraint logic programming (CLP) in economic modelling through the design and implementation of two economic models. The first model, the Desai- Henry model contains only linear equations while the second model, constructed by the author, contains non-linear elements. In order to implement the second model, a non-linear constraint solver was constructed. This was necessary because, although CLP is a very powerful programming paradigm, currently available implementations lack any on-linear constraint solving mechanisms

Parameters for Carrot Quality: and the development of the Inner Quality concept

The life processes of the carrot plant were demonstrated by various parameters in this study. Growth processes, including photosynthesis, absorption of nitrogen and other nutrients and formation of cells, tissues and organs, are measured by the parameters weight of leaves and roots and emission 30-50 white of delayed luminescence. The nitrate content may indicate growth but has to be investigated further. Differentiation processes, including refining, ordering, ripening and secondary metabolisms, are measured by the parameters root stumpiness, saccharose, sweetness, dry matter and emission 30-50 ratio of delayed luminescence. Some other parameters may indicate differentiation processes but have to be further investigated: leaves/root weight ratio, monosaccharides/saccharose ratio, carotenes, initial and total emission white, hyperbolicity ratio and slope white of delayed luminescence. Integration of growth and differentiation is measured by resistance to pests and disease, total appreciation and storage test. Some other parameters may indicate integration but need further investigation: carrot taste, slope white of delayed luminescence. Copper chloride crystallisation did not produce clear pictures due to failure of the method applied and should be further investigated since, in the Apple-1 and -2 studies (Bloksma et al., 2001, 2004 b), it was one of the indicators of the life processes. Electro-chemical parameters, except possibly pH, did not indicate growth processes in his study or in the Apple-1 and -2 studies

LEARNING FROM INTERORGANIZATIONAL PRODUCT FAILURE EXPERIENCE IN THE MEDICAL DEVICE INDUSTRY

Much research examines the causes of product failures such as the Ford Pinto gas tank design. Research also examines the consequences of product failures such as new product introductions resulting from the need to improve failed products. However, little is known about how the causes and consequences of product failures interact across different firms, and generate inter-organizational learning, within the same industry. Specifically, limited research has examined if a firm learns to reduce its own annual rate of product failures (e.g., experiences fewer product-related adverse events) by attending to the product failures and new product introductions of its competitors. In addition, we also do not know (1) how delayed reporting of product failure influences interorganizational learning, and (2) how the introduction of new products by one company impacts another firm’s effort to learn from this competitor’s product failures. To address these gaps, this dissertation develops and tests relationships between (1) inter-organizational learning from product failures, (2) product failure reporting delays, and (3) new product introductions. Regression analysis of 98,576 manufacturing firm-year observations from the medical device industry over a ten-year period (1998 to 2008) supports the proposed model. Specifically, the analysis supported two insights: (1) As expected, a competitor’s reporting delays can inhibit learning from others’ failures by increasing the chance of making poor inferences about the failure. Unexpectedly, however, delays can also improve inter-organizational learning because in reports that have taken longer to file, a clearer understanding of the failure’s cause-effect relationships is developed. iii (2) As expected, a competitor\u27s new product introductions positively impact interorganizational learning by transferring knowledge of product design between firms. Unexpectedly, a competitor’s new product introductions can also negatively impact inter-organizational learning from product failure by distracting the observing firm’s attention away from the competitor’s failures. The thesis contributes to the inter-organizational learning literature by: (1) modelling learning from others’ product failures, (2) highlighting the effects of reporting delays, and (3) showing how others’ new product introductions can distract. This thesis shows that learning from others’ product failures and new product introductions has significant benefits because it prevents serious injury and death among device users