Research Of The Perishable Hi-Tech Product Launch Strategy Baced On The Multinomial Logit Choice

Nowadays, life cycle of the Hi-Tech product has been shortened with disruptiveinnovation of the technology, resulting in sharp decline of product’s value in themarket. In response to this phenomenon, scholars introduce the concept ofPerishable Hi-Tech Product (PHTP). It is defined that Perishable Hi-Tech Productsare those that worsen in quality over time, and become lesser in value. For instance,Nokia, the previous dominator of mobile industry, suffers the fate of merger andacquisition because of the mistake in product launching strateg y. Obviously, thedecision-making on time to market and quality of Perishable High-Tech Product hasbecome the key factor affecting the operation of high-tech enterprise. However, theexisting study of Perishable Hi-Tech Product on time to market focuses onqualitative analysis, and scholar does not show a tactical advice about the optimaltime to market. Thus, this article analyses the strategy of Perishable Hi-Tech Producton the time-to-market and quality.First of all, this literature adopts the Logit model to describe the consumerbehavior, and determines the three variables, including the market demand, researchcost and profit under the limited opportunity respectively. After that, it establishesthe PHTP model based on the balance of time-to-market and quality, analyzing thelaunch strategy before and after the competitors. Then, through piecewise analysis ofthe model and the optimal parameter analysis, it summarizes the optimal solution oftime-to-market and profit strategy under different circumstances. At last, this paperdesigns a set of decision-making system that is suitable for enterprise operatinglaunch of Perishable High-Tech Product, in order to enhance the practicability of thismodel. Finally, it proves the reliability of PHTP model under the balance oftime-to-market and quality.With the application of theory in product life-cycle, Perishable High-TechProduct’s renewal and new product launching strategy, this article establish thePHTP model bace on the multinomial Logit choice. Through the design of PHTP’slaunch system, it provides a theoretical support for determining PHTP’s launch andeffectively facilitate the success of product. Meanwhile, this model is obviously referential to the similar perishable products in other industries.