Real options for the marketing of high technology products

Bettley, Alison (2006). Real options for the marketing of high technology products. In: 2nd European Conference on Management of Technology: Technology and Global Integration, 10-12 Sep 2006, Birmingham, UK.



The marketing of high technology products (HTPs) has long been considered problematic because of the risks associated with these products for both suppliers and customers. Real Options (RO) thinking is a framework for decision-making under conditions of high uncertainty. Its application to technology investment decisions is well-established but its relevance to the marketing function has so far been little explored. This paper analyses HTP marketing problems and their solutions in terms of the associated risk factors. Several ways in which RO thinking can be applied to reduce supply and/or demand side risk are identified together with two significant limitations to its use. Recommendations for further research are provided.

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