EXAMINATION OF PRODUCT DIFFERENTIATION : THE ANALYSIS OF PRODUCT DEVELOPMENT STRATEGY IN INK-JET PRINTER INDUSTRY

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  • 製品差別化競争の考察 : インクジェット・プリンタ産業における製品開発戦略の分析
  • セイヒン サベツカ キョウソウ ノ コウサツ インクジェット プリンタ サンギョウ ニ オケル セイヒン カイハツ センリャク ノ ブンセキ

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Abstract

The purpose of this paper is to deduce the mechanisms that cause product differentiation, and to clarify their impact on the price of product development activities. The technologies and product development activities of companies generate a variety of novel qualities, and these are then offered to consumers. Yet not all qualities necessarily foster value and utility for users. This type of product development risk is explained by the concept of market uncertainty. Innovation results in value creation in the form of product quality; innovation also engenders a price premium, and is thus an activity linked with a company's value acquisition. This type of innovation is extensive in the digital equipment industry. On the other hand, commoditization occurs, and such commoditization is related to the phenomenon of insufficient profits for a company. In the present research, Hedonic analysis is performed using POS data on Ink-jet printer to find a quality-adjusted price index. The present research also made it clear that incremental improvements of quality and performance played an important role in price changes for digital equipment. Since digital equipment is modular with an open product architecture, horizontal specialization can readily occur within the industry structure. Within such an industrial structure, only those companies that acquire a price premium through rapid market placement will gain a profit, while companies that lag behind in product-to-market placement will find it difficult to gain a profit. In the case of Ink-jet printer, it was suggested that the decline in transaction price was less for companies that supply higher resolution product that can be incrementally improved, and thus have a strong impact on price, than for companies that supply product with lower resolution.

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