Year
2001
Authors
Abstract
In many of the industries where durable products are used with complementary products, companies announce their new durable products long before their market introduction. This paper analyzes the rationale for product preannouncements in the context of indirect network externalities. We develop a model to analyze how both build consumers’ and program providers’ prior-to-launch perceptions affect the new hardware product’s penetration. While higher consumer expectations always induce a higher penetration rate in the long run, it might occur that the higher expectations amongst the providers of complementary products lead to a lower penetration rate if such expectations remain lower that the ones that consumers have.
LE NAGARD, E. et MANCEAU, D. (2001). Modeling the Impact of Product Preannouncements in the Context of Indirect Network Externalities. International Journal of Research in Marketing, pp. 203-219.