A DIFFERENTIAL GAME FOR MARKETING STRATEGY IN A DISTRIBUTIVE CHANNEL

This thesis explores the problem of feature fatigue in the context of smart product development and its impact on brand value. Feature fatigue arises when consumers experience dissatisfaction and frustration with excessive and complex product features after the initial excitement wears off. This negative effect can lead to diminished brand value and customer loyalty. The objective of this thesis is to understand the dynamics of feature fatigue and propose strategies to mitigate its impact on consumers and businesses. The study begins by providing a comprehensive overview of the concept of feature fatigue, exploring its causes, manifestations, and consequences in the context of smart products. It exam- ines the psychological factors and decision-making processes that contribute to feature fatigue, shedding light on the cognitive and emotional aspects of consumer behavior in relation to feature-rich products. The model we are about to introduce takes the cue from the paper in [1] by (R. Cesaretto, A. Buratto, P. De Giovanni, 2021) that tackles the feature fatigue issue from a single decision-maker point of view and using optimal control theory. In this thesis, our proposed model extends this framework to encompass a supply chain structure with two key players: a Manufacturer and a Supplier. By doing so, we reimagine and reformulate the problem within the context of a differential game involving two decision-makers. To capture the dynamics of feature fatigue and its influence on brand value, a dynamic model is proposed, wherein the stock of goodwill decreases with excessive technological investments that drive the creation of attrac- tive but ultimately impractical features. To mitigate the negative effects of feature fatigue, a digital servitization strategy is introduced. Overall, this thesis contributes to the understanding of feature fatigue in the context of smart product devel- opment and offers practical recommendations for businesses to design, market, and manage their products to minimize feature fatigue and enhance customer satisfaction.