- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
Innovation-driven durable goods markets see substantial changes in quality and available choice sets and subsequent changes of the reference quality in the market over time. Considering the multi-attribute characteristics of these goods, it is important for businesses to identify attributespecific competitive landscapes and develop competitive innovation strategies at the product attribute level. Therefore, this paper proposes a reference-dependent choice model for product quality at the product attribute level that can capture the asymmetric effect of innovation shocks on product demand, i.e., the innovation elasticity of demand, as well as the competitive market structure in product innovation. Moreover, we confirm that there is a certain quality span for a product attribute where the values of products depreciate most significantly due to innovation shocks, which we refer to as the innovation shadow zone. We demonstrate the effectiveness of the proposed approach in developing attribute-specific product innovation strategies using U.S. mobile telephone market data.
6. Conclusion and Future Research
This study suggests a reference-dependent choice model for product quality that can capture the asymmetric effect of innovation shocks on product demand and competitive market structure at the product attribute level. The proposed model enables companies to build attribute-specific product innovation strategies in response to idiosyncratic innovation shocks. Additionally, the proposed model provides a strategy for managing an attribute-level product portfolio. By considering the loss-aversion behavior of consumers, different innovation opportunities were also identified depending on the different levels of product attributes that center on the market reference point. That is, the asymmetric effect of the product innovation elucidated the innovation shadow zone, a certain quality span for a product attribute in which the values of products depreciate most significantly due to innovation shocks of a market.