Introduction Strategies for Innovative Products Considering Strategic Consumers: Simultaneous VS. Sequential

Aiming at the introduction strategy of innovation products, this paper constructed models of sequential introduction strategies and simultaneous introduction strategy based on the innovation level, obtained the equilibriums by backward induction under different strategies and discussed the firm' equilibrium decision. Study shows that the optimal introduction strategy is influenced by the unit production cost, the relative innovation degree and the degree of consumer strategy. In general, when the unit production cost of high-innovation products is moderate, the simultaneous introduction strategy is better than the sequential. The relative innovation level affects the high-innovation products' price in period 2 from two aspects: the innovation effect (the greater the innovation level is, the higher the price is) and the innovation-willingness effect (innovation level indirectly affects the product price by influencing the consumers' willingness to pay). In addition, narrowing the price difference of low-innovation products in two periods can effectively alleviate consumers' strategic waiting behavior.