Game Analysis of Customers' Participation in New Product Conceptions Selection Based on Separation Sequential Equilibrium

ABSTRACT Customer participation in new product development (NPD) has various advantages and disadvantages, research has proven that its beneficial factors are more in the early stages. The key in the initial phase of NPD is to understand the real needs of customers. In recent years, research in this field has been done mainly through questionnaires or data mining. However, most of the research have ignored the fact that customer preferences are private information and the influence of different customer groups on their willingness to participate. Because the selection of new product ideas takes place in the early stages of NPD and the degree of advance of customers is also an important parameter that indicates their willingness to cooperate in NPD activities, this paper will study the mechanism of private transfer of customers. Preferences will be considered in the selection phase of NPD concepts and their top grade. Results showed that the leading customers have reasonable motivation to participate in new product development, and advanced customers are more willing to express their product viewpoints.