Dynamic pricing of two-dimensional extended warranty considering the impacts of product price fluctuations and repair learning

2021 ◽  
Vol 210 ◽  
pp. 107516
Author(s):  
Dongfan Wang ◽  
Zhen He ◽  
Shuguang He ◽  
Zhaomin Zhang ◽  
Yiwen Zhang
Keyword(s):  
Dynamic Pricing ◽  
Two Dimensional ◽  
Product Price ◽  
Price Fluctuations ◽  
Extended Warranty

scholarly journals Research on Pricing of Flexible Two-Dimensional Extended Warranty Considering Preventive Maintenance

2019 ◽  
Vol 37 (2) ◽  
pp. 393-400
Author(s):  
Xiaolei Zhang ◽  
Chun Su
Keyword(s):  
Preventive Maintenance ◽  
Two Dimensional ◽  
Maintenance Strategy ◽  
Pricing Model ◽  
Reduction Model ◽  
Warranty Period ◽  
Extended Warranty ◽  
Warranty Cost ◽  
Usage Rates

Facing the uncertainty in transaction of two-dimensional extended warranty, a flexible pricing model is presented considering imperfect preventive maintenance combined with the degradation characteristics of item. The measure of two-dimensional preventive maintenance is carried out based on specified age interval or usage interval, the effect of imperfect preventive maintenance is described by age reduction model. The extended warranty cost is modeled from the perspective of manufacturer and customer, the method of gridding search is employed to optimize the maintenance strategy under different cases. Moreover, customized extended warranty price and warranty services are proposed on the basis of consumer usage rates. The results demonstrate that it is helpful to maximize the benefit of vendor by providing customized warranty strategy, the implementation of preventive maintenance during the whole warranty period can effectively reduce warranty cost for both sides.

scholarly journals Better Product Quality May Lead to Lower Product Price

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Régis Chenavaz
Keyword(s):  
Optimal Control ◽  
Product Quality ◽  
Dynamic Pricing ◽  
Product Innovation ◽  
Production Cost ◽  
Lower Price ◽  
Product Price ◽  
Control Framework ◽  
Innovation Policies

AbstractThis article analyzes the conditions under which better product quality implies higher or lower product price. In an optimal control framework, I make the following assumptions: The firm sets the dynamic pricing and product innovation policies; product innovation raises quality, which drives production cost, and consumers are sensitive to price and quality. I derive a rule of price-quality relationship that stresses the influence of quality on price through the effects of cost (positive), sales (negative), and markup (positive). This article shows that, while maximizing profit and despite a quality and cost increases, the firm may decrease product prices because of the possibility of generating more sales as a result of combining better quality with lower price. This sales effect solves the puzzle of a negative price-quality relationship. More generally, the sales effect mitigates the ability of price to convey information about quality.

scholarly journals Customized Preventive Maintenance Strategies for Products Sold with Two-Dimensional Warranty

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Fangqi Dong ◽  
Huaqiang Wang ◽  
Feng Men ◽  
Lijun Liang
Keyword(s):  
Numerical Analysis ◽  
Preventive Maintenance ◽  
Programming Model ◽  
Two Dimensional ◽  
Maintenance Costs ◽  
Maintenance Strategies ◽  
Warranty Period ◽  
Extended Warranty ◽  
Warranty Cost ◽  
Warranty Costs

Two-dimensional warranty has played a significant role in improving product quality and competitiveness. However, two-dimensional basic warranty (BW) and extended warranty (EW) have not yet been combined effectively, and the customized maintenance strategies based on the consumers’ heterogeneity have been quite limited, which result in high maintenance costs. In this paper, the possibility of reducing warranty cost over BW and EW is explored by classifying customers based on their usage rates and then offering them with customized preventive maintenance (PM) strategies. By considering the purchasing ratio of EW contracts, the PM strategies for BW and EW are closely combined by the bi-level programming model. Numerical analysis is given to show the application of the proposed warranty strategy, and the significant findings and sensitivity of the main parameters are analyzed in the end. The findings demonstrate that the customized PM strategies combining BW and EW can effectively reduce warranty costs within the warranty period and provide a scientific guidance for manufacturers to design a more reasonable PM strategy.

Two-dimensional extended warranty strategy including maintenance level and purchase time: A win-win perspective

2020 ◽  
Vol 141 ◽  
pp. 106294 ◽  
Author(s):  
Zhen He ◽  
Dongfan Wang ◽  
Shuguang He ◽  
Yiwen Zhang ◽  
Anshu Dai
Keyword(s):  
Two Dimensional ◽  
Extended Warranty

A Framework in Determining Extended Warranty by Using Two Dimensional Delay Time Model

2012 ◽  
Vol 433-440 ◽  
pp. 2997-3002 ◽  
Author(s):  
Hairudin Abdul Majid ◽  
Lili Ayu Wulandhari ◽  
Azzurah A. Samah ◽  
Ang Jun Chin
Keyword(s):  
Delay Time ◽  
Time Distribution ◽  
Arrival Rate ◽  
Distribution Data ◽  
Two Dimensional ◽  
Time Model ◽  
Extended Warranty ◽  
Period Estimation ◽  
Optimal Period ◽  
The Impact

A framework for determining optimal period and cost in extended warranty is proposed in this paper. The optimal period and cost is derived from two-dimensional delay time model. Two-dimensional delay time model is governed by age and mileage. Age and mileage gives effect for the rate of defect arrival λ. The steps for obtaining the model to estimate the optimal period cost of extended warranty is presented. It starts from modeling the defect arrival rate, the impact of preventive maintenance toward the defect arrival rate; determine the delay time distribution, data analyzing and the last optimal cost and period estimation for extended warranty.

A customized two-dimensional extended warranty with preventive maintenance

2017 ◽  
Vol 257 (3) ◽  
pp. 971-978 ◽  
Author(s):  
Yeu-Shiang Huang ◽  
Chao-Da Huang ◽  
Jyh-Wen Ho
Keyword(s):  
Preventive Maintenance ◽  
Two Dimensional ◽  
Extended Warranty

Ethics in E-Marketing

2010 ◽  
pp. 105-119
Author(s):  
Erkan Özdemir
Keyword(s):  
Decision Making ◽  
Dynamic Pricing ◽  
Critical Analysis ◽  
Ethical Climate ◽  
Ethical Decision Making ◽  
Ethical Issues ◽  
Marketing Mix ◽  
Product Price ◽  
Traditional Marketing ◽  
Marketing Executives

Some of the ethical issues experienced in traditional marketing practices are encountered in those of e-marketing as well. However, e-marketing practices raise specific new and different ethical issues as well. For instance, new forms of dynamic pricing, spam email advertising, and the use of tracking cookies for commercial purposes have all raised ethical issues. These issues can be examined from the perspective of such components of the traditional marketing mix as product, price, place and promotion, which are under the control of marketing executives. As such, an awareness of the ethical issues in e-marketing under the control of marketing executives is central to the realization of an ethical climate in e-businesses. The aim of this chapter is to present a critical analysis of ethical issues in e-commerce in relation to the marketing mix. The topics discussed within this framework will be enlightening for the ethical decision making process and practices of e-marketing.

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