The impact of unit cost reductions on gross profit: Increasing or decreasing returns?

The impact of unit cost reductions on gross profit: Increasing or decreasing returns?

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We suggest that marketers actively participate in reducing unit costs during new product development, consistent with the theme of integrated marketing and manufacturing. Most marketing managers misjudge the impact on gross profit of reducing variable unit manufacturing costs, mistakenly believing t...

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Bibliographic Details
Main Authors: Ely Dahan, V. Srinivasan
Format: Article
Language:English
Published: Elsevier 2011-09-01
Series:IIMB Management Review
Subjects:
Cost reduction
Increasing returns
New product development
Pricing
Integrated marketing and manufacturing
DFMA
Online Access:http://www.sciencedirect.com/science/article/pii/S0970389611000644
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spelling doaj-0aca3e1b3b634cfbba23ee4e68a38de82020-11-24T22:01:37ZengElsevierIIMB Management Review0970-38962011-09-0123313113910.1016/j.iimb.2011.06.004The impact of unit cost reductions on gross profit: Increasing or decreasing returns?Ely Dahan0V. Srinivasan1Researcher, UCLA Medical School, 2542 Cardigan Court, Los Angeles, CA 90077-1377, USAAdams Distinguished Professor of Management Emeritus, Graduate School of Business, Stanford University, Stanford, CA 94305-5015, USAWe suggest that marketers actively participate in reducing unit costs during new product development, consistent with the theme of integrated marketing and manufacturing. Most marketing managers misjudge the impact on gross profit of reducing variable unit manufacturing costs, mistakenly believing that such cost reductions yield decreasing or linear returns while they actually generate increasing returns.http://www.sciencedirect.com/science/article/pii/S0970389611000644Cost reductionIncreasing returnsNew product developmentPricingIntegrated marketing and manufacturingDFMA
collection DOAJ
language English
format Article
sources DOAJ
author Ely Dahan
V. Srinivasan
spellingShingle Ely Dahan
V. Srinivasan
The impact of unit cost reductions on gross profit: Increasing or decreasing returns?
IIMB Management Review
Cost reduction
Increasing returns
New product development
Pricing
Integrated marketing and manufacturing
DFMA
author_facet Ely Dahan
V. Srinivasan
author_sort Ely Dahan
title The impact of unit cost reductions on gross profit: Increasing or decreasing returns?
title_short The impact of unit cost reductions on gross profit: Increasing or decreasing returns?
title_full The impact of unit cost reductions on gross profit: Increasing or decreasing returns?
title_fullStr The impact of unit cost reductions on gross profit: Increasing or decreasing returns?
title_full_unstemmed The impact of unit cost reductions on gross profit: Increasing or decreasing returns?
title_sort impact of unit cost reductions on gross profit: increasing or decreasing returns?
publisher Elsevier
series IIMB Management Review
issn 0970-3896
publishDate 2011-09-01
description We suggest that marketers actively participate in reducing unit costs during new product development, consistent with the theme of integrated marketing and manufacturing. Most marketing managers misjudge the impact on gross profit of reducing variable unit manufacturing costs, mistakenly believing that such cost reductions yield decreasing or linear returns while they actually generate increasing returns.
topic Cost reduction
Increasing returns
New product development
Pricing
Integrated marketing and manufacturing
DFMA
url http://www.sciencedirect.com/science/article/pii/S0970389611000644
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AT vsrinivasan impactofunitcostreductionsongrossprofitincreasingordecreasingreturns
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