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The Study of New Product R & D and Testing Based on Behavior

Author: TianLongWei
Tutor: BoXiangZhi
School: Shantou University
Course: Business management
Keywords: New Product R&D Testing Behavior Supply Chain Management Pricing Information Sharing Subsidy Contract
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 26
Quote: 0
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Abstract


Considering the impact posed by process fairness preference of retailer on new product pricing strategy of manufacture and in order to increase the possibility of launching a successful R&D for new product, this paper made a research on cooperation mechanism design of R&D and pricing strategy for new product in a two-level supply chain which contains one manufacture(supplier) and one retailer. This paper found that the optimal wholesale price of new product would increase with a lager coefficient of retailer’s process fairness preference and her participation level, meanwhile, the performance of manufacture, retailer and supply chain would all better-off with the increasing commitment level of manufacture and coefficient of retailer’s process fairness preference, and also the supply chain would get Pareto dominance if manufacture commits completely. The possibility of launching a successful R&D for new product and the performance of supply chain would be elevated if manufacture selects R&D manager with lower coefficient of process fairness preference, new product cooperation project with higher profit, strategic cooperators of R&D with higher coefficient of process fairness preference and performance of supply chain would get Pareto refinement.This paper also studies a new product testing problem in a two-level supply chain and testing is used as a method to solve Galbraith’s Information Gap in new product promotion process. This research found that if the level of uncertainty of new product market is relatively high the retailer would like to report real information of testing, while if the otherwise the retailer could report fake information of testing. When the retailer has a chance to lie about the testing, the manufacture can get the real information by paying information rent and the higher the discount rate of the retailer holds the higher the information rent would be. Meanwhile, this paper studies the impact of information sharing on new product promotion from the prospective of Network Externalities and the result shows that information sharing plays a significant positive role in new product promotion. In the end, this paper finds that testing would better off the promotion of up-level and middle-level new product and the monopoly market is better for testing new product than oligopoly market.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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