scholarly journals Research on Supply Chain Extended Warranty Service Strategy Under Fair Concern

2020 ◽  
Author(s):  
Jiali Pan
Keyword(s):  
Supply Chain ◽  
Service Strategy ◽  
Extended Warranty ◽  
Warranty Service

Pricing Decisions and Provider Choice on Extended Warranty Service in Supply Chain

2019 ◽  
Vol 12 (4) ◽  
pp. 55-71 ◽  
Author(s):  
Rong Zhang ◽  
Mengjiao Li ◽  
Bin Liu
Keyword(s):  
Supply Chain ◽  
Total System ◽  
Service Cost ◽  
Supply Chain System ◽  
Provider Choice ◽  
Retail Pricing ◽  
Pricing Decisions ◽  
Extended Warranty ◽  
Cost Coefficient ◽  
Warranty Service

This article constructed a manufacturer-leading supply chain system considering the extended warranty service (EW) with a single manufacturer and a single retailer to study the influence of service cost on the choice of the EW provider. First, this article analyzed retail pricing, EW pricing, EW quality, the manufacturer's profit, the retail's profit and the total system profit in Model M and Model R. Then, the article analyzed the influence of service cost on the choice of the EW provider. Finally, it shows that if only part of consumers purchases the product with the EW, the manufacturer benefits from EW provided by the retailer. However, the retailer has to balance the ratio of the service cost coefficient. Furthermore, all consumers purchase the product with the EW, both the manufacturer and the retailer has to balance the ratio of service cost coefficient between manufacturer and retailer.

scholarly journals Optimal Pricing Strategies in a Product and Service Supply Chain with Extended Warranty Service Competition considering Retailer Fairness Concern

2019 ◽  
Vol 2019 ◽  
pp. 1-15 ◽  
Author(s):  
Du Zhao ◽  
Xumei Zhang ◽  
Tinghai Ren ◽  
Hongyong Fu
Keyword(s):  
Supply Chain ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Price Difference ◽  
Extended Warranty ◽  
Service Supply Chain ◽  
Reasonable Range ◽  
Fairness Concerns ◽  
Extended Warranties ◽  
Warranty Service

This paper examines optimal pricing in a two-tier product and service supply chain consisting of a manufacturer and a retailer in the context of vertical competition in extended warranty in two cases: one considering the retailer’s fairness concerns and one without considering the retailer’s fairness concerns. A manufacturer-dominated product and service supply chain game-theoretic model on the Stackelberg model is developed to analyse how the level of vertical competition in extended warranty service and the intensity of a retailer’s fairness concerns influence the optimal pricing of products and extended warranties for the manufacturer and retailer. This study finds the following: (i) Two parties of the supply chain employ differential pricing strategies for extended warranties when the retailer has fairness concerns. (ii) Compared to the same pricing strategies for extended warranty service when the retailer has no fairness concerns, the increase of competition intensity of vertical extended warranty service will enlarge the price difference of extended warranty service. Meanwhile, it is the intensity of fairness concerns that determines the influences of retailer’s fairness concerns on the price difference of extended warranties. (iii) If no fairness concerns are raised, an increase in the level of vertical competition in extended warranty service would benefit both supply chain parties, rather than hurting their profit. If the retailer is fair-minded, its fairness utility increases when the intensity of the fairness concerns rises in a reasonable range and decreases when the intensity exceeds the reasonable range, but for the manufacturer, its profits will be damaged as long as the retailer raises fairness concerns.

scholarly journals Effects of channel encroachment on the software and service decisions in it supply chains

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Tinghai Ren ◽  
Nengmin Zeng ◽  
Dafei Wang ◽  
Shuwei Cheng
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
High Price ◽  
Software Developers ◽  
Sales Price ◽  
Software Developer ◽  
It Service ◽  
Extended Warranty ◽  
Service Supply Chain ◽  
Intensity Of Competition

<p style='text-indent:20px;'>Currently, many upstream software developers not only sell software through downstream service providers, but also directly sell it to clients. However, in the field of IT service supply chain management, there is a lack of research on the channel encroachment of software developers. In this study, we consider an IT service supply chain with a software developer, a service provider and client enterprises. Clients can either purchase the software (developed by the software developer) from the provider with a high price and additional pre-sale services, or directly purchase it from the developer with a low price but without pre-sale service. After purchasing the software, the clients can also purchase the extended warranty service from the developer. The study shows that the market size occupied by the developer and the intensity of competition between the two parties will neither affect the developer's product and service pricing decisions, nor influence the total demand for software products and extended warranty services, and thus will not impact his own profit. However, these factors will impact the provider's decisions for pre-sale service quality and software sales price, thereby affecting the provider's software demand and profit, and thus impact the performance of the supply chain. In addition, as the intensity of competition between both parties increases, the provider will simultaneously choose to reduce the pre-sales service quality and the software sales price to compete with the developer. Different from conclusions of the existing research on competition, we surprisingly observe that as the sensitivity of client enterprises to the extended warranty services price increases, both parties will increase the software price to compete. The encroachment of the developer will reduce the provider's software demand and profit, and thus lead to a decline in the performance of the supply chain. Therefore, the encroachment of the developer is an act of squeezing out partners by decreasing the profit of the provider, but without affecting his own profit.</p>

scholarly journals Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective

2018 ◽  
Vol 10 (12) ◽  
pp. 4738 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Ji Zhang ◽  
Chenliang Li ◽  
Yizhao Zhao
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Coordination Mechanism ◽  
Market Demand ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Warranty Service

The remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model of remanufacturing closed-loop supply chain under the Stackelberg game model. The present study discussed and compared the decision variables, including remanufacturing product pricing, extended warranty service pricing, warranty period and supply chain system profit. The research shows that consumers’ decision-making significantly affirms the dual marginalization effect of the supply chain system while significantly affecting the supply chain warranty decision; the improved revenue sharing contract and the two charge contracts respectively coordinates the manufacturer-led and retail-oriented closed-loop supply chain system, which effectively implements the Pareto improvement of the closed-loop supply chain system with warranty services. In the present study, the model is verified and analyzed by numerical simulation.

Better Buy, Inc.

2017 ◽  
pp. 1-3
Author(s):  
Brandt R. Allen ◽  
E. Richard Brownlee
Keyword(s):  
Financial Reporting ◽  
Financial Accounting ◽  
Revenue Recognition ◽  
Electronic Products ◽  
Sales Price ◽  
Product Sale ◽  
Extended Warranty ◽  
Elective Course ◽  
One Year ◽  
Warranty Service

This case pertains to one of the most important topics in financial accounting and reporting: revenue recognition. It is intended for use in a required MBA financial accounting course or in an MBA elective course in Financial Reporting and Analysis. The company, Better Buy, Inc., is an electronics retailer selling TVs and other electronic products. The company is a bit unique, however, in that it not only sells major brand TVs, but it also sells TVs under its own brand that carry a one-year warranty for which the retailer—not the manufacturer—is responsible. The company also offers an additional two-year warranty on its TVs that also is the sole responsibility of the retailer. The case asks students to address a number of revenue recognition situations along with the associated expenses. These situations include a product sale where the sales price also includes a warranty provision, a “bundle” of a product sale and an extended warranty sale, and a bundle of a product sale and an extended warranty sale where the company has an agreement to outsource the servicing of its extended warranty service

Designing differential service strategy for two-dimensional warranty based on warranty claim data under consumer-side modularisation

2019 ◽  
Vol 234 (3) ◽  
pp. 550-561
Author(s):  
Tong Peng ◽  
Liu Chunling
Keyword(s):  
Service Providers ◽  
Claim Data ◽  
Two Dimensional ◽  
Function Type ◽  
Service Strategy ◽  
Actual Usage ◽  
Proposed Model ◽  
Warranty Service ◽  
The Mathematical Model

With the development of modular manufacturing technology and diversified demand for products, the demand for differential warranty service has become increasingly prominent. This article proposes a differential service strategy for two-dimensional warranty using warranty claim data under consumer-side modularisation. In contrast to previous research that optimised maintenance strategies under a given failure density function, this article obtains actual usage rate and failure density functions of main failure types by determining the function type and parameter fitting. A detailed case study of a product under a two-dimensional warranty is discussed to interpret the proposed model. Using the mathematical model proposed in this research, warranty service providers can offer consumers a differential warranty service under consumer-side modularisation.

Sign in / Sign up

Export Citation Format

Share Document