The launch of new products: New technology driven firm-user interactions with key opinion leaders for single and multiple interactions

Abstract

The launch of a new product is key to any firm’s success. Meanwhile, key opinion leaders (KOLs) have unique advantages in launching a new product in the supply chain, because they can interact with potential users, build customer relations, and enhance user satisfaction via the new technology in online platforms. This paper investigates how KOLs affect users’ utilities and demand as well as firm sales in launching a new product of consumer goods and trendy new product manufacturing industries. It examines the single and multiple dynamic firm–user interaction (FUI) strategies that are the key factors changing the supply chain. Several findings were obtained. 1) When the KOLs’ market influence is high, companies should adopt the FUI strategy to gain the KOLs’ assistance. 2) When users are not intent on buying new products, firms need to interact with users more frequently to increase the latter’s utility and demand. 3) The network externalities of online platforms and users’ preferences for new products are the key factors of dynamic FUI strategies. 4) For multiple interactions, the firm’s profits increase first and then decrease with the increase in the number of FUI. We enrich the literature on the supply chain’s new product sales strategies, improving firms’ new product sales performance, and increasing the success rate of new product development. Numerical experiments also demonstrate the impacts of model parameters on the optimal product selling strategies.