Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
권호 표지

A Study on Product Positioning based on Conjoint Analysis in a Competitive Market

경쟁시장에서 컨조인트분석에 기초한 제품포지셔닝에 대한 연구 : 온라인 게임을 중심으로

  • Published : 2006.09.01
Download PDF
⟨ Previous Next ⟩

Abstract

We introduce a two-stage game theoretic model to support decision making processes for product Positioning and pricing in competitive environment. In the first stage, firms decide on entry and product position, in the second stage, firms compete with price. 'Alpha rule' is used as a choice model. Demand parameters of the choice model are estimated by conjoint analysis. We investigate conditions for the existence of Nash price equilibria in the pricing game. Nash equilibria in the entry and positioning game are produced using a concept of stable sets. An example of the online game industry in Korea is examined.

Keywords

References

  1. 박찬수, '컨조인트 분석', 현대의 마케팅과학,1994
  2. 임호순, 김성호, '세분화시장에서의 제품 및 가격경쟁에 관한 모형', '한국경영과학회지', 제24권, 제1호(1999),pp.13-25
  3. Anderson, S., A Palma, and J. Thisse, Discrete Ooice Theory of Product Differentiation, The MIT Press, Cambridge, 1992
  4. Carpenter, G.S., 'Perceptual position and competitive brand strategy in a two-dimensional, two-brand market,' Management Science, Vol.35, No.9(1989), pp.1029-1044 https://doi.org/10.1287/mnsc.35.9.1029
  5. Choi, S., and W. DeSarbo, 'A Conjoint-based Product Designing Procedure Incorporating Price Competition,' Journal of product innovation management, Vol.11(1994), pp.451-459 https://doi.org/10.1016/0737-6782(94)90032-9
  6. Choi, S., W. DeSarbo, and P.T. Harker, 'Product Positioning under Price Competition,' Management Science, Vol.36, No.2(1990), pp, 175-199 https://doi.org/10.1287/mnsc.36.2.175
  7. Choi, S., W. DeSarbo, and P.T. Harker, 'A numerical approach to deriving long-run equilibrium solutions in spatial positioning models,' Management Science, Vol.38, No.1(1992), pp. 75-86 https://doi.org/10.1287/mnsc.38.1.75
  8. D'Aspremont, C., J.G. Gabszewicz, and J.-F. Thisse, 'On Hotelling's Stability in Competition,' Econometrica, Vol.47(1979), pp.1145-1150 https://doi.org/10.2307/1911955
  9. De Palma, A, V. Ginsberg, Y.Y. Papageorgiou, and J,-F. Thisse, 'The Principle of Minimum Differential Holds Under Sufficient Heterogeneity,' Econometrica, Vol.53(1985), pp.767-781 https://doi.org/10.2307/1912653
  10. Dobson, G. and U.S. Karmarkar, 'Competitive Location on a Network,' Operations Research, Vol.35(1987), pp.565-574 https://doi.org/10.1287/opre.35.4.565
  11. Eaton, B.C. and RG. Lipsey, 'The Principle of Minimum Differentiation Reconsidered : Some New Developments in the Theory of Spatial Competition,' Review of Economic Studies, Vol.42(1975), pp.27-50 https://doi.org/10.2307/2296817
  12. Eiselt, H.A. and G. Laporte, 'Competitive Spatial Models,' European Journal of Operational Research, Vol.39(1989), pp.231-242 https://doi.org/10.1016/0377-2217(89)90161-6
  13. Friedman, J.W, Game Theory with Applications to Economics, Oxford University Press, Oxford, 1986
  14. Fundenberg, D. and J. Tirole, Game Theory, The MIT Press, Cambridge, 1993
  15. Green, P. and A. Krieger, 'An Application of a Product Positioning Model to Pharmaceutical Products,' Marketing Science, Vol.11 No.2 (1992), pp.117-132 https://doi.org/10.1287/mksc.11.2.117
  16. Hadjinicola, G.C., 'Product positioning and pricing under production cost considerations,' Decision Science, Vol.30, No.3(1999), pp.849-864 https://doi.org/10.1111/j.1540-5915.1999.tb00909.x
  17. Hauser, J.R, 'Competitive price and positioning strategies,' Marketing Science, Vol.7(1988), pp.278-288
  18. Hauser, J.R. and SM Shugan, 'Defensive marketing strategies,' Marketing Science, Vol.2, No.4(1983), pp.319-360 https://doi.org/10.1287/mksc.2.4.319
  19. Hotelling, H, 'Stability in Competition,' Economic Journal, Vol.39(1929), pp.41-57 https://doi.org/10.2307/2224214
  20. Kamakura, W.A., 'A Least Squares Procedure for Benefit Segmentation with Conjoint Ex-periments,' Journal of Marketing Research, Vol.25(1988), pp.157-67 https://doi.org/10.2307/3172647
  21. Kuhn, H.W., 'Extensive Games and the Problem of Information,' in Contributions to the Theory of Games II, H. W. Kuhn and A. W. Tucker (eds.) , Princeton University Press, Princeton, 1953
  22. Lane, W.J., 'Product differentiation in a market with endogenous sequential entry,' The Bell Journal of Economics, Vol.2, No.1(1980), pp. 237-260
  23. Rhim, H and L. Cooper, 'Assessing Potential Threats to Incumbent Brands : New Product Positioning Under Price competition in a Multi-segmented Market,' International Journal of Research in Marketing, Vol.52(2005), pp.159-182
  24. Rhim, H., 'Genetic Algorithms for a Competitive Location Problem,' , '경영논집', 제31권(1997), 서울대대학교 경영연구소
  25. Selten, R., 'Reexamination of the Perfectness Concept for Equilibrium Points in Extensive Games,' International Journal of Game Theory, Vol1(1975), pp.25-55