Product Entry Timing in Dual Distribution Channels: The Case of the Movie Industry

Topics:
Positioning and Segmentation,
Product Development and Design,
Product Life Cycles
Tags:
Channel,
Entry,
Internet-Journals,
Movie
Source:
Internet-Journals

Vendor Registration: required

Overview: In many durable goods industries, firms continuously offer new products to customers and market them in different versions through different channel of distribution. This paper examines the issue of when to introduce the product into the different channels. The determinants of entry time include the discounting of future profits, the foresight of the firm, customers' expectations, and the possibility of cannibalization. Of special interest is the effect of customers' expectations about the timing of sequential entries. Specifically, it is shown here that profits decline if firms ignore the role of customer expectations.

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Format: PDF | Size: 332KB | Date: Apr 2005 | Pages: 20

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