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Product-line variety and innovation along product life-cycle in car market: are carmakers’ policies really effective?

Author

Listed:
  • Volpato, Giuseppe
  • Stocchetti, Andrea

Abstract

This paper presents some preliminary results of a research concerning the evolution of product variety and product innovation policies of carmakers in the European market. Three market segments are taken into consideration for the period 1984-2004; data concerning model sales and product characteristics of some of the main carmakers are examined and the aspects taken into consideration refers to Product Life-Cycle (PLC), price positioning, rough measures of Product Line Width (PLW) and Product Line Innovation (PLI). The aim of the research is to describe product replacement policies and timing pursued by carmakers within each segment to evaluate the effectiveness of carmakers PLC policies through inter-brand comparison mainly based upon: a) PLC extent for each model, b) PLW variation along the life-cycle, c) PLI effectiveness. Differences in brands policies, as well as evolutionary trends of persistence or of discontinuity within the same brand are investigated, as well as the relation between PLC trend and timing in new model introduction.

Suggested Citation

  • Volpato, Giuseppe & Stocchetti, Andrea, 2006. "Product-line variety and innovation along product life-cycle in car market: are carmakers’ policies really effective?," MPRA Paper 29312, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:29312
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    References listed on IDEAS

    as
    1. Giuseppe Volpato & Andrea Stocchetti, 2005. "L'investimento pubblicitario in Italia nel settore Automotive: nuove tendenze, implicazioni teoriche e manageriali," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2005(1).
    2. Petri Suomala, 2004. "The Life Cycle Dimension Of New Product Development Performance Measurement," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 193-221.
    3. Polli, Rolando & Cook, Victor, 1969. "Validity of the Product Life Cycle," The Journal of Business, University of Chicago Press, vol. 42(4), pages 385-400, October.
    4. Evaristo R. Clementi & Pier Angelo Piazza & Giuseppe Volpato, 2005. "Competitive assembly: brown or green field site – conventional or flexible plant – what's the best?," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 5(3), pages 351-373.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Car Industry; Product Policy; Car Marketing;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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