Research on Power Structure of Innovation Product of Supply Chain Considering Anticipated Regret

doi:10.3969/j.issn.1007-7375.2019.05.005

Abstract

Abstract: To research the impact of consumers' anticipated regret on innovative products' upgrading strategy in the supply chain, theoretical models were established and solved in three market power structures, including manufacturer being leader (M), retailer being leader (R) and having no leader (N). And then, the impact of some parameters are analyzed, including consumer's anticipated regret, innovation quality, depreciation rate and state probability, on the equilibrium results and system profit. The result show that, 1) facing strategic consumers' anticipated regret, innovative product remain attractive to consumers and the no leader (N) mode is good for consumers, while the state probability is high, pricing skimming is well suited for innovative product; 2) facing the continuous generation of innovative product, enterprises should adopt the strategy of moderate innovation for long-term development. When the innovation quality reaches the threshold, pricing penetration is well suited for innovative product. Under faster technical obsolescence, pricing skimming is well suited for current product and pricing penetration is well suited for innovative product.

Key words: consumers' anticipated regret, product innovation rollover, market dominant structure, pricing strategy

CLC Number:

F274

ZHANG Nian, LI Shiyang, JIANG Lin, JIAN Jie. Research on Power Structure of Innovation Product of Supply Chain Considering Anticipated Regret[J]. Industrial Engineering Journal , 2019, 22(5): 32-42.

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