Abstract
In any new product development (NPD) process, decisions regarding choice of products to launch, determination of their price and launch sequences are critical. In the context of commercial vehicles, these become more complex, as the prevailing economic conditions also affect the buying decisions of the fleet owners and transport operators. In this paper, we present mathematical models to illustrate how the impact of economic conditions can be incorporated in the above decision making process. Representative data from a commercial vehicle manufacturer in India, Vehicleindia Ltd.†, have been used for analysis. Our model, which determines launch sequence as well as price of the products, provides useful insights on the impact of economic conditions like boom or recession on prices, and also on cannibalization.
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