Slope endogeneity non linear approach to new product release

Former researchers have viewed price elasticity based econometrics and less attention to slope endogeneity influencing the same price (Luan, & Sudihr, 2010). To address the issue of slope in DVD sales the researchers selected endogenous variables (advertising, release timing, and retail price) (Luan, & Sudihr, 2010). For example of slope endogeneity the author's understood that the market sometimes pay more for homogeneous products based on preference. The literature presented a gap in addressing price coefficient beyond econometrics with little reference to the cause of the endogeneity slope. The literature leads us to believe managers are well aware of current variables when they set the price. The problem for researchers using the previous data before was the lack of data to support the managers price decisions. But using the variables listed above allows researchers a better opportunity to address slope endogeneity for new items. Reference Luan, Y. J., & Sudihr, K. (2010). Forecasting marketing-mix responsiveness for new products. Journal of Marketing Research (JMR), 444-457. doi:10.105974.2.444.