Abstract
The present paper attempts to push forward the studies of brand extension by formulating the problem and making use of the optimal stopping theory, to determine the optimal timing of the brand extension in a stochastic market. The main findings are as follows. If each customer gets wealthier stochastically over time, luxury fashion brand producer should postpone the timing of extending its brand to a new market, while if the number of customer increases stochastically, she/he should postpone that timing if the market uncertainty is less than a threshold level; she/he should accelerate the timing if the market uncertainty is more than a threshold level.
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Fujita, Y. (2017). Analytical Modeling Research for Luxury Fashion Products: Optimal Timing of Brand Extension in a Stochastic Market. In: Choi, TM., Shen, B. (eds) Luxury Fashion Retail Management. Springer Series in Fashion Business. Springer, Singapore. https://doi.org/10.1007/978-981-10-2976-9_7
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DOI: https://doi.org/10.1007/978-981-10-2976-9_7
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