nach oben

Marketing Letters

Erschienen in:

01.06.2008

Technological advances in digital cameras: Welfare analysis on easy-to-use characteristics

verfasst von: Junji Xiao

Erschienen in: Marketing Letters | Ausgabe 2/2008

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This paper examines the characteristics attributed to the success of digital cameras by studying both the demand and the supply sides of the digital-camera market. A discrete choice model is employed to investigate consumer preferences over digital camera characteristics during the period 1996–1998. The empirical findings reveal that Sony’s ‘Easy-to-Use’ storage system contributes significantly to Sony’s demand advantage and profitability. Also, the welfare analysis demonstrates that ‘Easy-to-Use’ attributes significantly contribute to social welfare improvement.

Vorheriger Artikel Nonparametric item response theory for investigating dimensionality of marketing scales: A SERVQUAL application

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Resolution has been regarded as the most important feature for a digital camera in both business reports and academic researches. But the resolutions of Mavica cameras were not more than 0.307 mega pixel, while the average resolution in the market was 0.380, and the leading resolution even reached 1.22 mega pixels.

My sample covers the inception periods of the digital camera industry. Product diffusion theory tells us an innovation is first adopted by a selected group of buyers, called innovators. They may have more homogeneous tastes. A heterogeneous demand model is also estimated, but little variation in the results is generated. To simplify the consequent estimation, therefore, I assume the consumers are homogeneous.

I thank Randy Bucklin for his comments on this point.

Popular Photography, September 1998.

Compare Olympus D300L with 6 MB international memory versus D320L with 2 MB external flash memory.

These two new models were introduced in October 1997, but they are not equipped with much desirable characteristics. For instance, their resolutions are 0.307 and 0.115, respectively, and both of them do not carry zoom. From the cost function, therefore, they are supposed to be priced low, which is observed from the estimated price in Table 2. My model predicts they deserve large market share due to low price. Apparently, the estimated market share in Table 2 proves this prediction. On the whole, the low marginal cost and the dominant market share imply high profits for both models.

Berry, S. (1994). Estimating discrete-choice models of product differentiation. RAND Journal of Economics, 25(2), 242–262.CrossRef

Berry, S., Levinsohn, J., & Pakes, A. (1995). Automobile prices in market equilibrium. Econometrica, 60(4), 889–917.CrossRef

Carranza, J. (2002). Durable goods demand with exogenous innovation: An empirical study of the digital photo cameras market. Ph.D. dissertation, Yale.

Hansen, L. (1982). Large sample properties of generalized method of moments estimators. Econometrica, 50(4), 1029–1054.CrossRef

Neelamegham, R., & Chintagunta, P. (2004). Modeling and forecasting the sales of technology products. Quantitative Marketing and Economics, 2, 195–232.CrossRef

Petrin, A. (2002). Quantifying the benefits of new products: The case of the minivan. Journal of Political Economy, 110(4), 705–729.CrossRef

Song, I., & Chintagunta, P. (2003). A micromodel of new product adoption with heterogeneous and forward-looking consumers: Application to the digital camera category. Quantitative Marketing and Economics, 1(4), 371–407.CrossRef

Song, M. (2007). Measuring consumer welfare in the CPU market: An application of the pure characteristics demand model. Rand Journal of Economics, 38–32, 429–446.CrossRef

Trajtenberg, M. (1989). The welfare analysis of product innovations: With and application to computed tomography scanners. Journal of Political Economy, 97, 444–479.CrossRef

Titel: Technological advances in digital cameras: Welfare analysis on easy-to-use characteristics
verfasst von: Junji Xiao
Publikationsdatum: 01.06.2008
Verlag: Springer US
Erschienen in: Marketing Letters / Ausgabe 2/2008
Print ISSN: 0923-0645
Elektronische ISSN: 1573-059X
DOI: https://doi.org/10.1007/s11002-008-9033-6

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 2/2008

Nonparametric item response theory for investigating dimensionality of marketing scales: A SERVQUAL application

Empathetic responses to advertising: Testing a network of antecedents and consequences

Image feedback effects of brand extensions: Evidence from a longitudinal field study

Hierarchical Bayesian conjoint models incorporating measurement uncertainty

Framing effects in mixed price bundling

Product uniqueness as a driver of customer utility in mass customization