Long-term pricing strategy based on network externalities

2020 ◽  
pp. 1-9
Author(s):  
Jianheng Zhou ◽  
Rongfei Xu
Keyword(s):  
Market Share ◽  
Strategic Behavior ◽  
Stackelberg Game ◽  
Network Externalities ◽  
New Product ◽  
Total Revenue ◽  
Strategic Pricing ◽  
Second Stage ◽  
Product Sales

In product sales with network externalities, a Stackelberg game model is established with a new product and an existing product in the market, investigating the influence of first-mover strategy and non-strategic pricing model on the pricing, market share, and profit of an enterprise. Furthermore, the influence of network externalities and transfer costs on the strategies of latecomers is studied. Finally, the market equilibrium is analyzed. The results show that under the strategic pricing, the first entrant grabs the market share with low price and low profit in the first stage, to obtain greater network externalities in the second stage, enhance the competitiveness with latecomer, and make the total revenue greater. Given network externalities and transfer costs, the strategic behavior of the first entrant makes it harder for the later entrant to enter the market.

scholarly journals Firms’ Strategic Pricing and Network Externalities

2020 ◽  
Vol 2020 ◽  
pp. 1-11
Author(s):  
Jianheng Zhou ◽  
Rongfei Xu
Keyword(s):  
Decision Making ◽  
Network Externalities ◽  
Strategic Decision ◽  
Strategic Consumers ◽  
Strategic Customers ◽  
Strategic Pricing ◽  
Pricing Decisions ◽  
Maximum Profit ◽  
The Impact

For the sale of a product with network externalities, a Stackelberg model involving an incumbent and an entrant is developed considering the impact of three strategic decision-making modes of the incumbent and consumers on the pricing, market share, and profit of firms. In addition, the impact of consumers’ strategic behaviours on firms’ pricing decisions and how firms respond to strategic customers is discussed. The results show that, in the SS (strategic firm facing strategic consumers) decision-making mode, the incumbent will implement long-term pricing and finally obtain the maximum profit, while as a follower of the incumbent, the entrant will also obtain the maximum profit in the SS mode. In the NS (nonstrategic firm facing strategic consumers) decision-making mode, the strategy of consumers seriously weakens the decision-making behaviour of the incumbent and causes the incumbent to obtain the lowest profit, but at the same time, the competitiveness of the entrant is enhanced to a certain extent, thereby rendering its profit higher than that in the NN (nonstrategic firm facing nonstrategic consumers) decision-making mode.

Social learning and network externalities in decision making

2017 ◽  
Vol 51 (1) ◽  
pp. 157-176 ◽  
Author(s):  
Dongling Huang ◽  
Dmitri G. Markovitch ◽  
Yuanping Ying
Keyword(s):  
Social Learning ◽  
Consumer Choice ◽  
Network Externalities ◽  
New Product ◽  
Relative Magnitude ◽  
Estimation Methods ◽  
Content Type ◽  
Product Usage ◽  
Product Categories ◽  
Product Sales

Purpose This paper aims to identify the effects of social learning and network externalities by conditioning on product quality and early sales momentum. This approach is demonstrated using film sales data. Design/methodology/approach This study used econometric modeling approach. Findings It was found that both social learning and network externalities have significant and comparable impacts on film choice. We show that the relative effects of network externalities and social learning in the film market are robust to different momentum and quality definitions and to alternative estimation methods. Originality/value Scholars have long argued that social learning plays a key role in new product diffusion. In some product categories, consumer choice may also be influenced by network externalities, meaning that purchasing popular products may provide the consumer utility above and beyond that derived from product usage directly. We propose a novel identification approach to help quantify the relative magnitude of these two effects on new product sales.

scholarly journals Strategic pricing across the product’s sales cycle: a conceptualization

2017 ◽  
Vol 13 (3) ◽  
pp. 6-16
Author(s):  
David R. Rink
Keyword(s):  
Life Cycle ◽  
Product Life Cycle ◽  
New Product ◽  
Pricing Strategy ◽  
Price Setting ◽  
Strategic Pricing ◽  
Short And Long Term ◽  
The Many ◽  
Initial Price

Establishing the initial price for a new product is one of the most important decisions a firm will make. Implementing and adjusting this price over the sales cycle of the new product are crucial decisions for both its short- and long-term success. A modification of the product life cycle (PLC) concept is presented to reflect one of the many alternative price-setting strategies available to the company. After justifying and illustrating the modified PLC pricing strategy, applications and limitations are presented and discussed.

Evaluating the Financial Performance Through ‘Consumer Centric Decision’ Approach in Pharmaceutical Companies of Bangladesh: a Business Planning Perspective

2017 ◽  
Vol 9 (1) ◽  
pp. 168
Author(s):  
Md Mostafizur Rahman ◽  
Mahmud Uz Zaman
Keyword(s):  
Market Share ◽  
Swot Analysis ◽  
Financial Analysis ◽  
Pharmaceutical Companies ◽  
Short Term ◽  
The Public ◽  
Investment Choice ◽  
Good Investment ◽  
Business Analysis

Pharmaceuticals agglomerations consistently use their brand image and versatile product portfolios to consolidate their position in the financial sector, which is evident in their continuous profit making and expansion in market share. This paper explores the short-term and long-term investment attractiveness through ‘consumer centric decision’ approach in two selected pharmaceutical companies, Renata Limited and Orion Pharma Limited, of Bangladesh over the last three years’ period. This research adopts a systematic approach which primarily addresses the various concerns of investors to illustrate the decision-making process of the existing and future investors. Using primarily domestic transaction data, this study explores how the leading pharmaceuticals companies of Bangladesh effectively use the wide array of drug portfolios mix with appropriate branding techniques to increase their financial profit and market share simultaneously. Both SWOT analysis and Porters Five Forces Model explore the business analysis of Renata Limited in compare to Orion Pharma Limited that provides a conclusion regarding investors’ decision to invest in Renata Limited. Considering the financial analysis, Renata’s financial liquidity is not very satisfactory and could have been improved further if management is prudent on financial strategy settings. Findings of the business analysis indicate that Renata Limited would be a good investment choice for existing and prospective shareholders based on its opportunities for long term and short term growth and further expansion in developing the market. The results suggest that even lower liquidity coupled with higher interest borrowings can be balanced by posing positive picture to the public shareholders by returning the positive dividend to them.

scholarly journals Adapting the definition of multimorbidity – development of a locality-based consensus for selecting included Long Term Conditions

2021 ◽  
Vol 22 (1) ◽  
Author(s):  
Nasrin Hafezparast ◽  
Ellie Bragan Turner ◽  
Rupert Dunbar-Rees ◽  
Alice Vodden ◽  
Hiten Dodhia ◽  
...  
Keyword(s):  
Literature Review ◽  
Selection Process ◽  
Final Decision ◽  
Local Health ◽  
Urban Context ◽  
Long Term Conditions ◽  
Large Cities ◽  
Second Stage ◽  
Local Health Service

Abstract Background Defining multimorbidity has proved elusive in spite of attempts to standardise definitions. For national studies, a broad definition is required to capture national diversity. For locally based studies, the definition may need to reflect demographic and morbidity patterns. We aimed to define multimorbidity for an inner city, multi-ethnic, deprived, young age community typical of many large cities. Methods We used a scoping literature review to identify the international literature, standards and guidelines on Long Term Condition (LTC) definitions for inclusion in our multimorbidity definition. Consensus was categorised into high, medium or low consensus, depending on the number of literature sources citing each LTC. Findings were presented to a workshop consisting of local health service stakeholders who were asked to select LTCs for inclusion in a second stage review. In the second stage, each LTC was tested against seven evaluation domains: prevalence, impact, preventability, treatment burden, progression to multiple LTCs, impact on younger people, data quality. These domains were used to create 12 target criteria. LTC rankings according to consensus group and target criteria scores were presented to a second workshop for a final decision about LTC inclusion. Results The literature review identified 18 literature sources citing 86 LTCs: 11 were excluded because they were LTC clusters. The remainder were allocated into consensus groupings: 13 LTCs were ‘high consensus’ (cited by ≥ 11 sources); 15 were ‘medium consensus’ (cited by 5–10 sources); 47 were ‘low consensus’ (cited by < 5 sources). The first workshop excluded 31 LTCs. The remaining 44 LTCs consisted of: 13 high consensus LTCs, all with high target score (score 6–12); 15 medium consensus LTCs, 11 with high target scores; 16 low consensus LTCs, 6 with high target scores. The final workshop selected the 12 high consensus conditions, 12 medium consensus LTCs (10 with high target scores) and 8 low consensus LTCs (3 with high target scores), producing a final selection of 32 LTCs. Conclusions Redefining multimorbidity for an urban context ensures local relevance but may diminish national generalisability. We describe a detailed LTC selection process which should be generalisable to other contexts, both local and national.

New product and emerging business growth in Kwara State

2016 ◽  
Vol 12 (3) ◽  
pp. 207-227 ◽  
Author(s):  
Seun Oladele ◽  
Femi Oladele
Keyword(s):  
Market Share ◽  
Manufacturing Industry ◽  
Service Industry ◽  
New Product ◽  
Sales Volume ◽  
Test Results ◽  
Business Growth ◽  
Content Type ◽  
Product Service ◽  
Service Portfolio

Purpose – The purpose of this paper is to examine the effect of new product on growth of emerging businesses (EBs) through sales volume and market share. Design/methodology/approach – The study surveyed 137 EBs in Kwara State. Two hypotheses were formulated and tested using correlation and regression analyses. Findings – Results show that service industry is dominant among EBs while the manufacturing industry trails. Many EBs are aware of the complexities of new product, its development and contribution to increasing sales volume, market share and ensuring competitive advantage with apparent infrastructural deficiencies. Test results show that there is a significant positive relationship and effect on sales volume and market share. Originality/value – Encouraging EBs to step up and focus on improving product/service portfolio to transform their fortune is explored giving focus to the benefits of increasing sales volume and market share.

Case study on the implementation of deammonification for the process water treatment of Munich WWTPs

2012 ◽  
Vol 65 (10) ◽  
pp. 1895-1902 ◽  
Author(s):  
Rita Hilliges ◽  
Eberhard Steinle ◽  
Bernhard Böhm
Keyword(s):  
Water Treatment ◽  
Operating Costs ◽  
Process Water ◽  
Second Stage ◽  
Sludge Disposal ◽  
Sludge Digestion ◽  
High Investment ◽  
Flow Treatment

The two-staged WWTP ‘Gut Grosslappen’ has a capacity of 2 mio. PE. It comprises a pre-denitrification in the first stage using recirculation from the nitrifying second stage. A residual post-denitrification in a downstream sand filter is required in order to achieve the effluent standards. Presently the process water from sludge digestion is treated separately by nitrification/denitrification. Due to necessary reconstruction of the biological stages, the process water treatment was included in the future overall process concept of the WWTP. A case study was conducted comparing the processes nitritation/denitrititation and deammonification with nitrification/denitrification including their effect on the operational costs of the planned main flow treatment. Besides the different operating costs the investment costs required for the process water treatment played a significant role. Six cases for the process water treatment were compared. As a result, in Munich deammonification can only be recommended for long-term future developments, due to the high investment costs, compared with the nitritation/denitritation alternative realizable in existing tanks. The savings concerning aeration, sludge disposal and chemicals were not sufficient to compensate for the additional investment costs. Due to the specific circumstances in Munich, for the time being the use of existing tanks for nitritation/denitritation proved to be most economical.

Toxocariasis/cysticercosis seroprevalence in a long-term rural settlement, São Paulo, Brazil

Parasitology ◽  
2009 ◽  
Vol 136 (6) ◽  
pp. 681-689 ◽  
Author(s):  
L. E. PRESTES-CARNEIRO ◽  
D. H. P. SOUZA ◽  
G. C. MORENO ◽  
C. TROIANI ◽  
V. SANTARÉM ◽  
...  
Keyword(s):  
Western Blot ◽  
Taenia Solium ◽  
Sao Paulo ◽  
Rural Settlement ◽  
São Paulo ◽  
Educational Levels ◽  
Second Stage ◽  
Paulo State ◽  
Ocular Manifestations

SUMMARYSeroprevalence of Toxocara and Taenia solium and risk factors for infection with these parasites were explored in a long-term rural settlement in São Paulo state, Brazil. An ELISA for the detection of anti-Toxocara IgG and IgE and anti-T. solium cysticerci was standardized using Toxocara excretory-secretory antigens (TES) obtained from the cultured second-stage larvae of T. canis and by vesicular fluid antigen from Taenia crassiceps cysticerci (VF). For cysticercosis, the reactive ELISA samples were assayed by Western blot using 18 kDa and 14 kDa proteins purified from VF. Out of 182 subjects, 25 (13·7%) presented anti-Toxocara IgG and a positive correlation between total IgE and the reactive index of specific anti-TES IgE (P=0·0265) was found amongst the subjects found seropositive for anti-Toxocara IgG. In these individuals 38·0% showed ocular manifestations. The frequency of anti-T. solium cysticerci confirmed by Western blot was 0·6%. Seropositivity for Toxocara was correlated with low educational levels and the owning of dogs. Embryonated eggs of Toxocara spp. were found in 43·3% of the analysed areas.

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