Grey game research about customer preference, international competition and the choice of industrial type

Abstract

Considering the different types of equipment manufacturing industries, consumers' differentiated preferences for Chinese domestic equipment manufacturers and multinational equipment manufacturers, as well as the uncertainty of technological level and dependence on production factor in reality, this paper introduces the interval grey number into the Stackelberg game model, and analyzes the market share of two competing enterprises and the consumer preferences for both of their products based on different industrial types. The results show that when both of the competing firms are engaged in R&D activities, consumers prefer domestic products, and with the improvement of technological level, this preference grows stronger, but the market share of the multinational enterprise is higher than that of local enterprises. When the two competing enterprises are engaged in manufacturing activities, consumers are more inclined to choose products of the multinational company, and with the increasing dependence on production factors, the preference becomes stronger. Meanwhile the market share of the multinational company is higher than the local enterprise. Therefore, from the perspective of consumer preference, China's domestic equipment manufacturing enterprises should choose technology-intensive or technology & labor-intensive industries (or dual-intensive industries).