By a News Reporter-Staff News Editor at Journal of Engineering -- Current study results on Industrial Engineering have been published. According to news originating from Tianjin, People's Republic of China, by VerticalNews correspondents, research stated, "Versioning is a widely adopted differentiation strategy in information technology industry. This paper investigates the optimality of versioning strategies of information products in a monopolist market with two-dimensional product quality and various customer distributions."
Our news journalists obtained a quote from the research from Tianjin University, "A niching steady-state genetic algorithm (Niching SSGA) is adopted to obtain numerical solutions for analytically intractable optimization problems. Our experiments show that the three-version scheme is more profitable than the one-version scheme when an information product is differentiated along two independent quality dimensions, while the one-version scheme is more profitable when only one quality dimension is considered. In addition, we study three types of customer distributions, namely, the uniform distribution, the exponential distribution, and the Gaussian distribution. Our investigation verifies that the customer distribution has a significant impact on the optimality of the versioning strategy of information products in a two-dimensional vertical differentiation model. This issue has not been investigated yet either analytically or numerically."
According to the news editors, the research concluded: "Moreover, when the highest-quality version is exogenously priced higher than the optimal price in the one-version scheme, the multiple-version strategy is more profitable and has a greater market coverage as well."
For more information on this research see: Optimal versioning in two-dimensional information product differentiation under different customer distributions. Computers & Industrial Engineering, 2013;66(4):962-975. Computers & Industrial Engineering can be contacted at: Pergamon-Elsevier Science Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, England. (Elsevier - www.elsevier.com; Computers & Industrial Engineering - www.elsevier.com/wps/product/cws_home/399)
The news correspondents report that additional information may be obtained from H.Y. Feng, Tianjin University, Coll Management & Econ, Tianjin 300072, People's Republic of China. Additional authors for this research include M.Q. Li and F.Z. Chen.
Keywords for this news article include: Asia, Tianjin, Industrial Engineering, People's Republic of China
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