Advance Consumer Behavior Analysis Influenced by Technical Innovation and Promotion

Abstract

This paper analysis the influence of technical innovation on advance and spot competition equilibrium. It finds out that the spot promotion has no influence on advance price, but it has an negative effect on both advance price and total revenues. And by providing newest technical innovation which costs little than before, it concludes that technical innovation enlarges consumer preference choice. It could improve firm’s advance price, but its optimal total revenue maybe decrease. And the advance price has a minimum value. So,technical innovation also can help firms to make their price strategy better.