Abstract

In disruptive innovation, a new entrant firm with fewer resources challenges the established incumbent firms. The new entrant firm offers an innovative product that is considered superior in new features appealing to a group of new customers, but inferior along the traditional performance attributes valued by mainstream customers. Previous research primarily focuses on the product strategies that could benefit the incumbent firms, thus, it is less unclear how the new entrant firm should strategize the innovative product. This article investigates the product pricing and positioning strategies for the new entrant firms who wholly invest in a single product. Our analytical model incorporates two horizontally distinct product attributes, where potential consumers have different preferences and reservation prices toward the two product attributes. We identify four product pricing and positioning strategies, and their corresponding optimal conditions. Our analysis shows that the product position is closely related to the customer valuation gap between the two attributes. As the innovative product will improve sufficiently on the traditional performance attributes, results from this study can be applied at different stage of product development by the new entrant firm.

摘要

在颠覆性创新中，资源较少的新进入企业会挑战现有的现存企业。这家新进入的公司提供了一种创新产品，该产品被认为具有吸引新客户的新功能，但在功能上却不如主流客户所重视的传统性能。先前的研究主要集中在可以使现有公司受益的产品策略上，因此，不清楚新进入的公司应如何制定创新产品的战略。本文研究了完全投资单一产品的新进入公司的产品定价和定位策略。我们的分析模型结合了两个水平不同的产品属性，潜在的消费者对这两个产品属性具有不同的偏好和保留价格。我们确定了四种产品定价和定位策略，以及它们相应的最佳条件。我们的分析表明，产品位置与两个属性之间的客户评估差距密切相关。由于创新产品将充分改善传统性能属性，因此这项研究的结果可以由新进入的公司应用于产品开发的不同阶段。