Empirical Determinants of Product Obsolescence and the Product Cycle: An Application to the Commercial Mainframe Computer Market

Topics:
Product Life Cycles
Tags:
Computer,
Hardware,
Kellogg School Of Management,
Mainframes,
Product,
Product Cycle,
Sales,
Sales Strategy,
Servers
Source:
Kellogg School of Management

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Overview: One investigates the determinants of product obsolescence and the product cycle in the computer mainframe market. One uses hazard models with time-varying covariates to estimate how long a product remains for sale and the rate at which a product's installed base declines to a low level after sales cease. One interprets these as measures of the determinants of success or failure in sales and support activities, respectively. One finds that cannibalization and product vintage have strong effects on both of these activities. One also finds that the duration that a product remains for sale has positive effects on its post-sale support, a finding that suggests that this variable may be a proxy for unmeasured quality and network attributes of the product.

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Format: PDF | Size: 243KB | Date: Aug 2000 | Pages: 40

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