College of Management Science, Management Department, University of Lowell, One University Ave., Lowell, MA 01854, USA
Abstract:
The price-oriented experience curve has been widely utilized as a model to design marketing strategies. Yet, it is cost over which many firms exercise the most control. This article explores the cost-oriented learning curve in conjunction with the product life cycle model as joint strategy constructs. Implications of variations in the learning curve parameters are examined.