A system dynamics model for analyzing a product life cycle | |
| Author | Anwarul, Islam |
| Call Number | AIT Thesis no.IE-80-04 |
| Subject(s) | Product life cycle Marketing--Mathematical models |
| Note | A thesis submitted in partial fulfilment of the requirement for the degree of Master of Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | The purpose of this study is to evaluate the characteristics of a Product Life Cycle against various factors especially the effect of advertisement on it. This study takes into account the technology based products, which are durable in nature but rapidly changing its life style due to rapidly expanding technological growth. Various factors were identified and were classified into five groups, namely, producer factors, market factors, durability and obsolescence factors, factors affecting diffusion of technology and consumer behavioral factors; those have bearings on the life cycle of products. As the marketing system is very complex in nature and very difficult to be represented by a single mathematical model, the help of System Dynamics Methodology was taken to solve this complexity. Sensitivity analysis was done to see the behavior of the product life cycle under varying factor conditions and significant factors affecting the life span were identified. The study found out that profitability and promotional expenditure at the initial stage of the product have profound impact on the life cycle. Other factors like investment size, advertising expenditure, price ratio and price perception have substantial effect. Market growth, quality, time and experience and population have very little effect on the life cycle. The model showed that human behavioral impact on life cycle seems very negligible. The result obtained from this System Dynamics model was compared with the actual data and calculated values in order to prove the validity of the model and a close applicability of the model was observed. |
| Year | 1980 |
| Type | Thesis |
| School | School of Engineering and Technology |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Engineering (IE) |
| Chairperson(s) | Tabucanon, Mario T. |
| Examination Committee(s) | Pakorn Adulbhan ; Oudheusden, Dirk L. Van |
| Scholarship Donor(s) | Danish International Development Authority (DANIDA) |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1980 |