An Approach to Discriminating Cut-off Point of Product Life Cycle Based on Polynomial Regression Model

摘要

Identifying cut-off points over stages of product life cycle is an important content of accounting for enterprise life cycle. The common method used in pract ice for recognizing cut -off points is analogy, that is, to qualitatively discriminate product life cycle according to the changes of sales or sales volumes over time. This method, however, could not give a quantitative description on the ambiguity of the divisions on product life cycle. Based on literature study and analysis, this paper proposes a new method of polynomial regression model. By fitting profit changes with product life cycle curve, it is possible to accurately discriminate cut -off points over stages of product life cycle. We wish this method could help enterprises to know well about which stage their prod uct locate in the market t imely, hence enable them to select agreeable market ing strategy to the product life cycle, facilitate their products renovation and guarantee enterprises' development stable and sustainable.