Research On The Introduction Of Durable Goods And Pricing Strategy Based On The Innovation Level Perspective

This article mainly studies the introduction of durable goods and pricing strategies under technological progress.Considering a firm that innovates,produces and sells durable goods to strategic consumers over two periods.In the first period,the firm provides products with low innovation.During this period,the firm continue to innovate products and provide high level of innovation products to consumers in the second period.In this paper,we considered the firm's introduction and pricing strategies products under three circumstances,namely(1)the firm equilibrium decision based on consumer strategic behavior;(2)the firm equilibrium decision considering product depreciation;and(3)consideration of value depreciation the firm balanced decision-making.The first main problem studied in this paper is the optimality of the two durable goods rollover strategies under different technical conditions and influencing factors.In other words,how does the level of product innovation and depreciation factors affect the choice of the optimal rollover strategy of the firm? We found that in minor-to-moderate innovation,the rollover strategy of durable goods based on consumer strategic behavior and considering value depreciation is mainly determined by the level of product innovation.When considering product depreciation,the rollover strategy of durable goods is mainly determined by product depreciation.Under product depreciation,it is also affected by the level of product innovation,and the two together determine the firm's balanced decision.In major innovation,based on the consumer's strategic behavior and considering product depreciation,the single rollover strategy is always optimal;while considering value depreciation,only when the product innovation level is high,the single rollover strategy is the best.Otherwise,the firm's optimal rollover strategy is determined by the level of product innovation and value depreciation.This is different from the first and second cases.This is because when considering value depreciation,value depreciation affects the consumer's utility function and the firm's first-stage product pricing,making the firm's equilibrium decision meaningful under both possible consumer segment structures.The second major question is how under the same rollover strategy,how does the level of product innovation affect the firm pricing strategies and the corresponding consumer segment structure? Under the single rollover,in the first and third cases,the firm pricing strategy is mainly determined by the level of product innovation;when considering product depreciation,it is mainly determined by the level of product depreciation and product innovation.During the dual rollover strategy,we find that the firm's pricing strategy is the same under minor-to-moderate innovation and major innovation.That is to say,the firm balanced decision-making under the dual rollover strategy has nothing to do with technological progress.Finally,through numerical analysis,we compare the equilibrium profits of single and dual rollover strategy in Chapters 3,4,and 5.Based on strategic consumers,the effects of product depreciation and value depreciation on the introduction of durable goods and pricing strategies under different innovation levels and profit discounts are analyzed.