New Product Demonstrations And Pricing Decision Under Product Update

Product upgrading has been a common phenomenon,such as Apple,HUAWEI,MI and other enterprises almost every year will launch new products.At the same time,in order to let consumers know about the new products directly and have a good purchase experience,these enterprises also open a wide range of experience stores to provide consumers with product demonstration.So as to improve consumers' feelings and evaluation of the whole purchase process,and improve enterprises' competitiveness.Based on the above reality,this dissertation introduces product demonstration into the product update environment to study the impact of different product demonstration decisions on the product pricing decision and the total profit of the enterprise under the condition of product update.Using Hotelling model to construct the profit models of enterprises in the monopolistic environment and the duopoly environment respectively.Analyze and compare the optimal price of products and enterprise profits in different market environments with or without new product demonstration,and also analyze the decision-making of enterprises in the demonstration of new products.The research shows that in the monopolistic environment,enterprises always have a better chance to demonstrate new products than not to demonstrate them,and the demonstration will increase the price of new products and affect the price of old products according to the cross effect of new products' demonstration on old products.In the duopoly environment,the demonstration decision of the enterprise is related to the demonstration cost and the original market share of the enterprise.When the demonstration cost is high,neither company will show new products.When the display cost is low,both companies will launch a new product demonstration;When the cost of demonstration is medium,the company with more than half of the market share will demonstrate while the other company will not demonstrate new products.The above study considered different market environment,enterprise market share,product update degree and other conditions,which provided theoretical support for the enterprise's demonstration decision and pricing decision when updating products.