Abstract
Different product architecture requires different methods of sequential innovation. Hence, firms make sequential innovation decisions based on both pricing and product architecture. As consumers become familiar with product development paths and with an increasing demand for product quality, some customers (quality-concerned strategic customers) prefer to wait for product quality improvement before purchase. In some industries, service cost, the cost of providing product and service support, is extremely high, but is frequently ignored. Therefore, based on extant research, we investigate the innovator's sequential innovation decisions, and investigate the effect service costs exerted on sequential innovation through mathematic modelling and numerical analysis.
Published Version
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