Exploratory and Normative Models for New Products Sales, Prices and Launch Locations
01 / 2006 - 06 / 2010
This projects aims to increase our understanding of how new products are launched, priced over time and geographically distributed. To reach this aim, new theoretical models will be either developed or adapted from different research domains. The purpose of developing new models is twofold: Our first aim is exploratory. That is, first we will use models to answer questions such as how firms launch sequences of new products, how firms set prices for new products and where firms launch new products. Our second aim is normative. Hence, our objective is to apply new models to answer questions such as when should firms launch different versions of a new product, how should firms set prices for new products over time and where should firms launch new products. The project is composed by three main topics: New Products Launch Time Strategies (1 paper) New Products Pricing Strategies (2 papers) New Product Distribution Strategies (1 paper) Some aspects of new products are well known and have been already generalized from previous empirical research; for example, new high technology products prices decline over time or the cumulative sales of new products follow an S shape. The Bass (1969) model is the most used and well known model to explain and rationalize the S shape of new products cumulative sales. However, there are not such models available to explain the introduction of sequences of new products or models that explain the well known declining price pattern of new products and the geographical distribution of their demand. Therefore, this project will contribute to previous literature by introducing new models to explain unexplored topics in the new products literature.