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A Product Diffusion Model For Single-Function And Fusion Products, Yuwen Chen, Janice Carrillo
A Product Diffusion Model For Single-Function And Fusion Products, Yuwen Chen, Janice Carrillo
Yuwen Chen
The prosperity of multifunction products (also referred to as fusion products) has changed the landscape of the marketplace for several electronics products. To illustrate, as fusion products gain popularity in cellular phones and office machines, we observe that single-function products (e.g., stand-alone PDAs and stand-alone scanners) gradually disappear from the market as they are supplanted by fusion products. This paper presents a product diffusion model that captures the diffusion transition from two distinct single-function products into one fusion product. We investigate the optimal launch time of the fusion product under various conditions and conduct a numerical analysis to demonstrate the …
Fusion Product Planning: A Market Offering Perspective, Yuwen Chen, Janice Carrillo, Asoo Vakharia, Peter Sin
Fusion Product Planning: A Market Offering Perspective, Yuwen Chen, Janice Carrillo, Asoo Vakharia, Peter Sin
Yuwen Chen
Devices that integrate multiple functions together are popular in consumer electronic markets.We describe these multifunction devices as fusion products as they fuse together products that traditionally stand alone in the marketplace. In this article, we investigate the manufacturer’s fusion product planning decision, adopting a market offering perspective that allows us to address the design and product portfolio decisions simultaneously. The general approach adopted is to develop and analyze a profit-maximizing model for a single firm that integrates product substitution effects in identifying an optimal market offering. In the general model, we demonstrate that the product design and portfolio decisions are …
Product-Portfolio Strategies: The Case Of Multi-Function Products, Yuwen Chen, Asoo Vakharia, Aydin Alptekinoglu
Product-Portfolio Strategies: The Case Of Multi-Function Products, Yuwen Chen, Asoo Vakharia, Aydin Alptekinoglu
Yuwen Chen
Motivated by the proliferation of multifunction products, we investigate product portfolio decisions of a single firm by analyzing the impact of three ma;'or factors. First, because multifunction products provide complete or partial functionalities of single-function products, we incorporate substitution or cannibalization effects between the potential products. Second, we explicitly model the variable costs of manufacturing the single0function and multifunction products. Third, we examine the firm's pricing decisions because of their impact on the degree of cannibalization between the multifunction product and one or more single-function products. Using an economic model, we first characterize the firm's optimal product portfolio (through a …