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Physical Sciences and Mathematics Commons

Open Access. Powered by Scholars. Published by Universities.®

Singapore Management University

2018

Analytical modeling

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Full-Text Articles in Physical Sciences and Mathematics

Multigeneration Product Diffusion In The Presence Of Strategic Consumers, Zhiling Guo, Jianqing Chen Mar 2018

Multigeneration Product Diffusion In The Presence Of Strategic Consumers, Zhiling Guo, Jianqing Chen

Research Collection School Of Computing and Information Systems

Frequent new product releases pose significant challenges for firms as they manage successive generations of product diffusion. We develop an analytical model to study the effect of different purchase options by strategic consumers on a firm's profit and the firm's strategies for the timing and pricing of its successive generations of product diffusion. We show that consumers' strategic behavior, although adversely affecting the sales of the first-generation product, positively influences the sales of the second-generation product through an initial “seeding” effect. The influence of strategic consumers on profit and sales depends largely on the discount-to-price ratio of the first generation …


A Model Of Competition Between Perpetual Software And Software As A Service, Zhiling Guo, Dan Ma Mar 2018

A Model Of Competition Between Perpetual Software And Software As A Service, Zhiling Guo, Dan Ma

Research Collection School Of Computing and Information Systems

Duplicate record, see https://ink.library.smu.edu.sg/sis_research/3744/. Software as a service (SaaS) has grown to be a significant segment of many software product markets. SaaS vendors, which charge customers based on use and continuously improve the quality of their products, have put competitive pressure on traditional perpetual software vendors, which charge a licensing fee and periodically upgrade the quality of their software. We develop an analytical model to study the competitive pricing strategies of an incumbent perpetual software vendor in the presence of a SaaS competitor. We find that, depending on both the SaaS quality improvement rate and the network effect, the …


A Model Of Competition Between Perpetual Software And Software As A Service, Zhiling Guo, Dan Ma Mar 2018

A Model Of Competition Between Perpetual Software And Software As A Service, Zhiling Guo, Dan Ma

Research Collection School Of Computing and Information Systems

Software as a service (SaaS) has grown to be a significant segment of many software product markets. SaaS vendors, which charge customers based on use and continuously improve the quality of their products, have put competitive pressure on traditional perpetual software vendors, which charge a licensing fee and periodically upgrade the quality of their software. We develop an analytical model to study the competitive pricing strategies of an incumbent perpetual software vendor in the presence of a SaaS competitor. We find that, depending on both the SaaS quality improvement rate and the network effect, the perpetual software vendor adopts one …