Designing Digital Rollovers: Managing Perceived Obsolescence through Release Times
نویسندگان
چکیده
When releasing a new version of durable product, firm aims to attract customers as well persuade its existing customer base upgrade. This is commonly achieved through rollover strategy, which comprises the price product decision discontinue sale (solo rollover) or sell at discounted (dual rollover). In this study, we argue that timing release an important—but overlooked—third lever in design successful strategy. The influences consumers' perception obsolescence, by considered obsolete merely reference product. reinforces upgrading behavior customers, but it also necessitates deep discounts keep viable dual rollover. We analyze impact on solo and rollovers markets for digital goods (i.e., where production costs are negligible) composed naive sophisticated consumers. Under assumption both old would offer similar utility if there was no perceived show selecting times from continuous timeline can induce sufficiently large parts upgrade so optimal. characterize resulting market segmentation, managerial policy advice.
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ژورنال
عنوان ژورنال: Production and Operations Management
سال: 2021
ISSN: ['1059-1478', '1937-5956']
DOI: https://doi.org/10.1111/poms.13459