TITLE

NEW PRODUCT PRICING IN QUALITY SENSITIVE MARKETS

AUTHOR(S)
Smith, Stephen A.
PUB. DATE
January 1986
SOURCE
Marketing Science;Winter86, Vol. 5 Issue 1, p70
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper considers the problem of pricing a new product in a market having competing products of different qualities and market penetration levels, as measured by the cumulative number of units sold. Each customer type selects his optimal product based on maximizing consumer surplus. Pricing policies for a new product are determined for the seller based on cumulative profit maximization without discounting. An example is solved in detail for two demand function forms. (Pricing; New Product Entry; Quality Differentiation)
ACCESSION #
4475187

 

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