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J4  2014, Vol. 11 Issue (1): 124-    DOI:
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Optimal Production and Sampling of Primary and Contingent Products Under Supply Constraint
HU Zhineng,QU Tingting
Sichuan University, Chengdu, China

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Abstract  In this paper, a model group of diffusion process of primary and contingent products is established, and the impact of free samples on diffusion process is explored with considering repeat purchase, multiple-unit purchase and various pricing strategies under supply constraint. It argues that by balancing the production capacity and cost, the firm can determine a proper production capacity to meet the market; when the production capacity is enough, there is no need to set up the preparatory period to produce products; when the production capacity is too small to meet the demand, there is no need to sampling; when the production capacity reaches a certain extent, the sampling level will keep in a stable level. It is significant for the firm to determine the sampling level under different production capacity. 
Key wordsprimary product      contingent product      free sample      pricing strategy      production capacity     
Received: 10 July 2012     
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