Market Segmentation , Cannibalization , and the Timing of Product Introductions

@inproceedings{Moorthy2008MarketS,
  title={Market Segmentation , Cannibalization , and the Timing of Product Introductions},
  author={K. Sridhar Moorthy and Ivan P. L. Png},
  year={2008}
}
Consider a seller who faces two customer segments with differing valuations of quality of a durable product. Demand is stationary and knos-n. the technology exists to release two products simultaneously, and the seller car1 commit in advance to subsequent prices and qualities. Should he introduce two differentiated products at once or one at a time? Undcr the simultaneous strategy, the lowcr quality would cannibalize demand for the higher quality. To reduce cannibalization, the seller could… CONTINUE READING
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