Intertemporal Pricing of New Products: Incentivizing Consumer Learning and Inertia

SSRN Electronic Journal ◽

10.2139/ssrn.2513532 ◽

2014 ◽

Cited By ~ 3

Author(s):

Dan Zou

Keyword(s):

New Products ◽

Consumer Learning ◽

Intertemporal Pricing

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Consumer Learning and The Creation of Primacy Advantages For Followers

Journal of Business Strategies ◽

10.54155/jbs.17.2.145-162 ◽

1970 ◽

Vol 17 (2) ◽

pp. 145-162

Author(s):

Brian Engelland ◽

Bruce Alford

Keyword(s):

New Products ◽

Relative Advantage ◽

Consumer Learning ◽

The Creation

This paper examines the basis for the primacy advantages that pioneersenjoy, then applies it to the strategic plight of followers. The authors developand test a Model of Innovation Learning that shows how individuals relatetheir understanding of new products to those with which they've had previousexposure. In an application of the model to the introduction of a new packagedgood, three factors - relative advantage, expertise, and familiarity arefound to have statistically significant effects on perceived distinctiveness;and perceived distinctiveness is found to be a predictor of perceptual separationand primacy advantage. Suggestions are given to assist in strategy formulationdecisions for followers.

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