IDEAS home Printed from https://ideas.repec.org/p/uct/uconnp/2016-36.html
   My bibliography  Save this paper

Revisiting the Product Life Cycle

Author

Listed:
  • Dennis Heffley

    (University of Connecticut)

Abstract

Simplicity of the basic product life cycle (PLC) concept helps to explain its popularity in economics, management, marketing, and other business-­‐related fields; but this simplicity also poses a risk of incorrectly estimating and misinterpreting the time paths of product sales and prices. This review highlights both theoretical and empirical applications of the PLC and offers some suggestions about how to improve applications of the concept. In particular, expanding the PLC framework to consider multiple determinants of sales and prices, rather than treating these outcomes as simple time-­‐dependent relationships, would enhance our understanding of market processes. JEL Classification: Key words:

Suggested Citation

  • Dennis Heffley, 2016. "Revisiting the Product Life Cycle," Working papers 2016-36, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2016-36
    as

    Download full text from publisher

    File URL: https://media.economics.uconn.edu/working/2016-36.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guifang Yang & Keith Maskus, 2001. "Intellectual property rights and licensing: An econometric investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 58-79, March.
    2. Fishman, Arthur & Rob, Rafael, 2002. "Product innovations and quality-adjusted prices," Economics Letters, Elsevier, vol. 77(3), pages 393-398, November.
    3. Dollar, David, 1986. "Technological Innovations, Capital Mobility, and the Product Cycle inNorth-South Trade," American Economic Review, American Economic Association, vol. 76(1), pages 177-190, March.
    4. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
    5. B Aytac & S D Wu, 2011. "Modelling high-tech product life cycles with short-term demand information: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(3), pages 425-432, March.
    6. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-583, June.
    7. Rink, David R. & Swan, John E., 1979. "Product life cycle research: A literature review," Journal of Business Research, Elsevier, vol. 7(3), pages 219-242, September.
    8. Berrin Aytac & S. Wu, 2013. "Characterization of demand for short life-cycle technology products," Annals of Operations Research, Springer, vol. 203(1), pages 255-277, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    2. repec:use:tkiwps:1818 is not listed on IDEAS
    3. Alcalá, Francisco & Solaz, Marta, 2018. "International Relocation of Production and Growth," CEPR Discussion Papers 13422, C.E.P.R. Discussion Papers.
    4. H. T. Tran & E. Santarelli, 2013. "Determinants and Effects of Innovative Activities in Vietnam. A Firm-level Analysis," Working Papers wp909, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Lin, Hwan C., 2010. "Technology diffusion and global welfare effects: Imitative R&D vs. South-bound FDI," Structural Change and Economic Dynamics, Elsevier, vol. 21(4), pages 231-247, November.
    6. Yang, Guifang & Maskus, Keith E., 2001. "Intellectual property rights, licensing, and innovation in an endogenous product-cycle model," Journal of International Economics, Elsevier, vol. 53(1), pages 169-187, February.
    7. Christoph March & Ina Schieferdecker, 2021. "Technological Sovereignty as Ability, Not Autarky," CESifo Working Paper Series 9139, CESifo.
    8. Sèna K. Gnangnon, 2021. "Aid for Trade and services export diversification in recipient countries," Australian Economic Papers, Wiley Blackwell, vol. 60(2), pages 189-225, June.
    9. Lu, Chia-Hui, 2007. "Moving up or moving out? A unified theory of R&D, FDI, and trade," Journal of International Economics, Elsevier, vol. 71(2), pages 324-343, April.
    10. Connolly, Michelle, 1999. "North-South Technological Diffusion: A New Case for Dynamic Gains from Trade," Working Papers 99-08, Duke University, Department of Economics.
    11. Christopher F. Baum & Mustafa Caglayan & Oleksandr Talavera, 2016. "R&D Expenditures and Geographical Sales Diversification," Manchester School, University of Manchester, vol. 84(2), pages 197-221, March.
    12. Zigic, Kresimir, 1998. "Intellectual property rights violations and spillovers in North-South trade," European Economic Review, Elsevier, vol. 42(9), pages 1779-1799, November.
    13. Edwin L.-C. Lai, 2008. "The international product cycle and globalization of production," Staff Papers, Federal Reserve Bank of Dallas, issue May.
    14. Grossman, Gene M & Helpman, Elhanan, 1991. "Endogenous Product Cycles," Economic Journal, Royal Economic Society, vol. 101(408), pages 1214-1229, September.
    15. Hagspiel, Verena & Huisman, Kuno J.M. & Kort, Peter M. & Lavrutich, Maria N. & Nunes, Cláudia & Pimentel, Rita, 2020. "Technology adoption in a declining market," European Journal of Operational Research, Elsevier, vol. 285(1), pages 380-392.
    16. André Varella Mollick & João Ricardo Faria & Pedro H. Albuquerque & Miguel A. León-Ledesma, 2008. "Can globalisation stop the decline in commodities' terms of trade?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(5), pages 683-701, September.
    17. Guo, Xuezhen, 2014. "A novel Bass-type model for product life cycle quantification using aggregate market data," International Journal of Production Economics, Elsevier, vol. 158(C), pages 208-216.
    18. Lee, Seong-Hoon & Goo, Young-Wan, 2008. "Endogenous Income Distribution with Product Obsolescence," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 49(2), pages 75-90, December.
    19. Fratesi, Ugo, 2007. "The Spatial Diffusion of Innovations and the Evolution of Regional Disparities," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 11, pages 131-160.
    20. Ros Jaime, 2013. "Latin America’s Trade and Growth Patterns, the China Factor, and Prebisch’s Nightmare," Journal of Globalization and Development, De Gruyter, vol. 3(2), pages 1-16, March.
    21. Zhu, Susan Chun, 2005. "Can product cycles explain skill upgrading?," Journal of International Economics, Elsevier, vol. 66(1), pages 131-155, May.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uct:uconnp:2016-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark McConnel (email available below). General contact details of provider: https://edirc.repec.org/data/deuctus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.