A Game Theory Model of Product Sampling in New Product
This paper discusses the use of product sampling as a marketing tool to reduce consumers’ uncertainty and help them learn about new products before making a purchase decision. The paper provides examples of different product sampling strategies used for various product types and introduces a game theoretic model to find the optimal level of product sampling for companies. The paper assumes that consumers have a prior belief about the new product and that their impression of the product is formed during the product sampling. The study shows that more informative product sampling can increase the likelihood of a consumer with a high prior belief having a favourable impression and a consumer with a low prior belief having an unfavourable impression. This paper summarises how companies in different industries should determine the optimal product sampling level to maximise profit.
