Choosing products to launch from a set of platform based variants and determining their prices are some of the critical decisions involved in any new product development (NPD) process. Commercial vehicles are products, whose sales are closely tied with the economic conditions. The manufacturers have to choose the variants of the commercial vehicles to launch and sequence the product launches in such a way that profitability is maximized. We develop a two period model to choose the platform based variants, their prices and launch sequences with the two periods, spanning two economic conditions, for example boom and recession. Our model helps in determining realistic prices of products in different economic conditions.
Chaudhuri, A., & Singh, K. (2009). Two period product choice models for commercial vehicles. In N. Srinivasa Raghavan, & J. A. Cafeo (Eds.), The Art and Science Behind Successful Product Launches (289-301). Springer Verlag. https://doi.org/10.1007/978-90-481-2860-0