Single Rollover Research Articles

Single rollover or dual rollover: How a monopoly NEV manufacturer responds to NEV credit policy

The NEV credit policy plays a crucial role in advancing the new energy vehicle (NEV) industry and environmental conservation. This study investigates the monopoly NEV manufacturer’s optimal rollover strategy (Single Rollover (SR) vs. Dual Rollover (DR)) and pricing scheme (skimming vs. penetration) under the government’s stricter calculation criteria for NEV credit policy, considering a two-period market with strategic consumers. We find that the NEV manufacturer typically adopts a skimming pricing scheme in DR strategy, while a penetration pricing scheme in SR strategy. The choice between SR and DR strategy hinges on the government’s calculation criteria for NEV credits, product upgrade speed, and vehicle environmental performance improvement. When the calculation criterion for NEV credits is moderate, or when it is low, coupled with fast product upgrade speed and marginal improved environmental performance of the new vehicle, SR strategy is beneficial to the NEV manufacturer to avoid the cannibalization between new and old vehicles. In contrast, the NEV manufacturer can benefit from DR strategy through price discrimination between new and old vehicles to attract consumers from different market segments. However, stricter calculation criteria for NEV credits do not always result in higher social welfare.

Optimal Trade‐In and Pricing Strategy under Strategic Consumers and Sequential Innovation

With the growing emphasis on the advancement of the circular economy, companies are investigating various approaches, such as trade‐in strategies, to stimulate consumption and support the circular economy. Although there is a substantial amount of research on trade‐ins, there is a scarcity of multistrategy studies on upgrade programs. In order to address this deficiency, we created four two‐period dynamic game models that utilize strategic consumer and product sequential innovation as the basis for examining company pricing and strategic decision‐making. Our research shows that a single rollover upgrade program can generate significant revenues when there is a high level of product innovation and consumers are strategic in their decision‐making. On the other hand, a dual rollover upgrade program can target a bigger range of customers who are looking to replace their current products. If the product is not highly innovative or strategically important for consumers, the profit advantage of the upgrade program with a single rollover is lost. In such cases, the upgrade program with a dual rollover not only ensures revenue but also helps to increase the size of the customer group who are more willing to replace their products.

The Joint Decision of Cost Reduction Effort and Product Rollover Strategy for Fashion Items in the Presence of Strategic Consumers

The trend in the fashion industry forces them to change their collection more frequently than ever. Product rollover strategy refers to the retailer’s decision how to manage the old product when the new one enters the market. They can either withdraw the old product to avoid cannibalization between two products (called a single rollover strategy) or sell both to maximize total sales (called a dual rollover strategy). This study considers a supplier who sells an innovative product through a retailer, which the latter subject to decides the rollover strategy. Through analytical approaches, we investigate the interaction between a supplier's cost-reduction and a retailer's rollover strategy when strategic consumers are present in the market. We found that the supplier's capability in R&D plays a crucial role in equilibrium results. When the firm is highly efficient in cost reduction, the introductory product price can be increased regardless of the rollover strategy being chosen. Our study demonstrates a counterintuitive result where a dual rollover strategy might have a lower introductory price compared to the single rollover strategy when the investment in production cost takes place. This finding shows how a supplier’s cost reduction effort mitigates the cannibalization effect while delivering a better profit.

Optimal product rollover strategies for successive-generation products: The role of the trade-in program and product characteristics

When introducing new generation product (NGP), firms face the problem of whether to phase out old generation product (OGP) (i.e., single rollover strategy) or continue selling OGP at discounted prices (i.e., dual rollover strategy). Besides, the popularity of trade-in transactions and product characteristics (i.e., innovation level and durability level) that directly affect customers’ purchase decisions may further complicate the choice of product rollover strategy. This paper develops an analytical model to investigate a firm’s optimal product rollover strategies with a trade-in program incorporating product characteristics. We find that the firm is better off following a single rollover strategy under the trade-in program when customers are strategic. The trade-in program is not necessarily beneficial to the firm. Specifically, when either the durability level of OGP or the innovation level of NGP is sufficiently low, the trade-in program cannot improve the firm’s profitability. Interestingly, we find that improvement of the innovation level of the NGP is not always beneficial to the firm under the trade-in program, particularly when the durability of the OGP is at a relatively high level.

Influence of the load position of heavy vehicles on the service life of asphalt pavements

ABSTRACT Numerical models were designed to simulate the mechanical behaviour of pavement structures. Usually, the load is applied in the centre of the pavement structure and the resulting stresses, strains and deformations in the design space are calculated. It is assumed that the loading of the tyre on the edge of the pavement structure has significant effects on the stresses inside the structure and so on the durability of these pavements. The purpose of this study is to investigate the effect of the tyre position on the slopes of road construction. So a very detailed FE model of the pavement structure with the banquet area was designed and the impacts of different vehicle classes are calculated. Based on the German numerical dimensioning methodology, the service life for the different loading conditions was determined. The research results show that the contact area of the tyres as well as the lateral distance to the outer edge of the road have a significant influence on the service life of roads. The direct comparison of the resulting damage potential of trucks and agricultural or forestry vehicle shows that agricultural or forestry vehicles tend to cause slightly higher damage in a single rollover, but have a low overall risk due to the lower number of overruns during the period of usage of the road. The simulation results also show that there is a significant influence on the damage potential, which is strongly dependent on the footprint of the load and the distance to the outer edge of the road.

Dynamic pricing for the successive-generation products in the presence of strategic customers and limited trade-in duration

PurposeThis paper investigates the dynamic pricing strategy of a firm for the successive-generation products under the conditions of the limited trade-in duration and strategic customers. Further, it explores the effect of a limited trade-in duration on the choice of the myopic and strategic customers, besides the optimal dynamic pricing and trade-in strategy of the firm.Design/methodology/approachBased on the choice behavior of the myopic and strategic customers, the authors have developed a two-period game-theoretic analytical model to decide the optimal retail prices of the successive-generation products and the optimal trade-in rebate when the firm adopts a dynamic pricing strategy and then investigate three extensions of the basic model to discuss the change in the results owing to the relaxation of certain conditions.FindingsThe authors find from the results that, in terms of profit maximization, it is better to extend the limited trade-in duration, and hence, the firm should implement a dynamic pricing strategy. However, in the situation of using a static pricing strategy, the firm should extend the limited trade-in duration only if the incremental value of the new generation products is below a certain threshold. Moreover, the firm should use a dual rollover strategy instead of a single rollover one. If all customers in the market are myopic, then the firm should also extend the limited trade-in duration.Research limitations/implicationsThis study mainly discusses the impact of limited trade-in duration on the firm's dynamic pricing strategy when facing strategic customers, which provides several directions for future research. First, if the government offers subsidies to consumers, how will strategic consumers make purchase decisions? How would the enterprise make its pricing decision? Second, when asymmetric information exists between consumers and firms, how will it affect consumers' choice behavior and firms' pricing decisions? All these issues are worth exploring in the future.Practical implicationsThese results offer certain managerial insights for the firm in the decision making on pricing within the trade-in program.Originality/valueThis is the first work to study the dynamic pricing strategy of the firm for the successive-generation products under the conditions of the limited trade-in duration and strategic customers. Further, this work discusses the changes in results owing to the relaxation of certain conditions.

Product rollover and direct sales decisions in dual-channel supply chains

This study investigates product rollover and direct sales decisions in a supply chain with one fashion manufacturer and one retailer when two style generations are sequentially introduced to the market over two periods. The retailer serves as the exclusive sales channel during the introductory period of a style generation. Both the retailer and manufacturer are capable of selling the old style generation in the second period. The retailer adopts dual rollover if she sells the old style generation, and single rollover if she does not. We develop a two-stage game to explore the chain members’ equilibrium decisions while accounting for the manufacturer’s cost inefficiency in direct sales and consumers’ mental account deficit. We find that the manufacturer’s cost inefficiency has double-edged effects and can offset the negative effect of consumers’ mental account deficit on the introduction of a new style generation. Furthermore, a win–win outcome can be achieved when the manufacturer with an intermediate level of cost inefficiency engages in direct sales and consumers have high valuations of the old style generation or when the manufacturer with significant cost inefficiency does not engage in direct sales.

Manufacturer’s Business Strategy: Interaction of Sharing Economy and Product Rollover

This paper develops an analytical framework to study a manufacturer’s optimal business strategy involving the interaction of product sharing and product rollover in the sharing economy. Our analysis reveals that, regardless of whether the production cost is high or low, the manufacturer will participate in product sharing as long as the new product’s rental cost is not very high. Furthermore, under the manufacturer’s participation in product sharing, the manufacturer will sell two generations of products when the production cost is low. When the production cost is moderate, the manufacturer will adopt single rollover. Finally, the manufacturer’s participation in product sharing will increase the old/new product’s price and the manufacturer’s total profits but will decrease the old/new product’s demand in the sales market. Meanwhile, the manufacturer’s product sharing will decrease the price and demand of idle products from owners in the sharing market.

Analysis on product rollover strategies: The innovation level perspective

We focus on the firm's decision on product rollover strategies from the view of innovation level. Consider an innovative firm produces and sells durable goods to strategic consumers over two periods. In period one, the firm offers a product with a low innovation level. During that period, the firm continues to innovate such that a product with a high innovation level can be offered in period two. The analysis is separated into two parts: minor-to-moderate innovation and major innovation. We find that the rollover decision is considerably different when the innovation is minor-to-moderate from when the innovation is major. In the former case, the optimality of each rollover strategy is fully determined by the innovation level of the product introduced in period two and the customers' discounter factor; whereas in the latter case, the single rollover strategy always dominates the dual rollover strategy. Moreover, the firm's pricing policy under single rollover is strongly dependent on the innovation level of the product introduced in period two. Whereas under dual rollover, the firm's pricing decision is independent of the innovation level. Finally, it is to be noted that the findings in this research are mainly contingent on the model framework.

Can Strategic Customer Behavior Speed Up Product Innovation?

We study a monopolistic firm which introduces two product versions sequentially in two periods. We analyze and compare the firm's decisions on the innovation level of the new version, the production quantities and prices of both versions, and the associated profit in four settings: when the customers are myopic or strategic in period 1 and whether the leftover inventory of the old version is phased out from the market (single rollover strategy) or is sold in the market (dual rollover strategy). In period 2, newcomers who wish to buy the new version arrive in the market. We show that the firm can improve both its profit and its innovation level by adopting an appropriate rollover strategy when selling to strategic customers. This finding underscores the importance of choosing a rollover strategy. Interestingly and differently from the existing literature, we see that strategic waiting behavior can accelerate innovation. These analytical insights remain largely valid when some of the customers who cannot get the old version due to a stockout leave the market before the new version arrives, or when some of the newcomers are interested in the new version as well as the leftover old version.

The interaction between product rollover strategy and pricing scheme

In high-tech and innovative industries, many firms make joint decisions on product rollover strategy and pricing scheme and offer trade-in programs under some circumstances to encourage repeated purchasing. This paper studies the interaction between product rollover strategy and pricing scheme with trade-in program offered, by proposing a two-period model incorporating market heterogeneity and consumers' forward-looking behavior. The results show that for both single rollover and dual rollover, the firm is better off following price skimming when consumers are not strategic enough, and product salvage value is low compared to new product innovation level; otherwise, penetration pricing is preferable. For given pricing scheme, the firm's optimal rollover strategy depends on product innovation level, salvage value, and how strategic the consumers are. Under either rollover strategy, the firm has no incentive to offer the trade-in program under the circumstances when product innovation level is low, product salvage value is extremely low or high, or consumers are not strategic enough.

Analysis of Product Rollover Strategies in the Presence of Strategic Customers

Frequent product introductions emphasize the importance of product rollover strategies. With single rollover, when a new product is introduced, the old product is phased out from the market. With dual rollover, the old product remains in the market along with the new product. Anticipating the introduction of the new product and the potential markdown of the old product, strategic customers may delay their purchases. We study the interaction between product rollover strategies and strategic customer purchasing behavior and find that single rollover is more valuable when the new product's innovation is low and the number of strategic customers is high. Interestingly and counter to intuition, the firm may have to charge a lower price for the old product as well as receive a lower profit with a higher value disposal (outside) option for the old product under single rollover. Facing a market composed of both strategic and myopic customers, the firm does not necessarily reduce the stocking level as more myopic customers become strategic. This paper was accepted by Yossi Aviv, operations management.

Analysis of Product Rollover Strategies in the Presence of Strategic Customers

Frequent product introductions emphasize the importance of product rollover strategies. With single rollover, when a new product is introduced, the old product is phased out from the market. With dual rollover, the old product remains in the market together with the new product. We study the interaction between product rollover strategies and strategic customers' purchase behavior. We fi nd that single rollover is more valuable when the innovation of the new product is low and the number of strategic customers is high. Interestingly and counter to intuition, the firm may suffer from a high value disposal option for the old product.

Adsorption and Reorientation Kinetics of Lysozyme on Hydrophobic Surfaces

Using total internal reflectance fluorescence (TIRF), we observe that lysozyme adsorption onto hydrophobic surfaces can exhibit kinetic overshoots at some conditions, while, at lower free solution concentrations or flow rates over the surface, the coverage monotonically approaches its final value. This behavior is explained by an interfacial relaxation from an end-on to a side-on orientation, which occurs by rollover and not by the displacement of end-on adsorbed proteins by side-on adsorbing proteins. Rollover and displacement models are compared with data to prove this point. Ultimately, we quantitatively predict the kinetic traces for a variety of different adsorption histories (free solution concentration, flow rate, interruption of adsorption by flowing solvent) using a rollover model with reversible transport-limited adsorption of end-on oriented lysozyme and a single rollover rate constant.