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Simultaneous Consumer Utilities, Multi-Sided Markets and Consumer Synergies
Last modified: 2019-12-18
Abstract
By employing a systemic approach, which is completely dissimilar to those used in the literature, this work scrutinizes issues related to the following problems: (1) What are the most fundamental decisions a retailer can make in terms of its offers to consumers? (2) When can simultaneous consumer utilities be produced by collocating products and/or services? (3) When can a positively correlated multi-sided market be formed? And (4) without particular talent and luck how can a synergistic innovation be introduced? Due to the specific approach taken, we are able to describe how simultaneous consumer utilities, two-sided markets and consumers’ willingness to pay additional react with one another and how the previous problems can be addressed by establishing a series of 6 propositions. To explore the possibility of systemically generating new ideas instead of waiting for the seemingly sudden and random appearance of disruptive technologies, a mechanical procedure is developed for the potential of producing synergistic innovations on either the producer or the demand side. Because of the certainty systems science offers, the general conclusions developed in this paper are expected to provide practically useful recommendations for entrepreneurs, managers and retailers to create and to capture values for consumers and their companies.
Keywords
collocation of products; market demand; simultaneous consumer utility; multi-sided market