Dynamic Pricing Strategies for New Products with Extended Warranty Contracts PDF Download
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Author: 张盛球
Publisher:
ISBN:
Category : Pricing
Languages : en
Pages : 0
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Author: 张盛球
Publisher:
ISBN:
Category : Pricing
Languages : en
Pages : 0
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Author: Shengqiu Zhang
Publisher: Open Dissertation Press
ISBN: 9781361371039
Category :
Languages : en
Pages :
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This dissertation, "Dynamic Pricing Strategies for New Products With Extended Warranty Contracts" by Shengqiu, Zhang, 张盛球, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: An extended warranty provides consumers the opportunity to rectify product failures at little or no cost after the expiry of the base warranty. Empirical evidence has shown that the selling of extended warranty contract (EWC) has become a profitable business in many manufacturing and retail industries. This thesis investigates the dynamic pricing problem for a new product with the option of purchasing an extended warranty contract (EWC). The research simultaneously determines the pricing strategies for both the product and the associated EWC, and the production rate to maximize the manufacturer's long-term total profit. The results show that the provision of EWC will significantly affect the optimal pricing strategy for the new product, and may also affect its optimal production plan. The research establishes three mathematical models for making optimal pricing decisions under different operational settings. The first model considers a centralized selling system in which the manufacturer sells the product and offers the associated EWC to the consumer directly. The second model extends the first one by incorporating the production and inventory decisions in the analysis. The third model considers a decentralized system in which the manufacturer sells the new product to consumers through an independent retailer. The EWC can be offered either by the manufacturer or by the retailer. It is shown that each scenario leads to a differential Stackelberg game in which the manufacturer and the retailer are players. For the first model, the Pontryagin maximum principle is used to derive the necessary condition for the optimal pricing strategies for both the new product and the associated EWC. Some properties for pricing the new product optimally are then studied. Apart from analysing the characteristics of the optimal pricing strategy under general demand conditions, closed-form solutions for the problem are also derived for some specific demand functions. In cases where closed-form solutions cannot be found, a gradient algorithm is applied to solve the problem numerically. In the second model, the production rate becomes a decision variable because the unit production cost depends on the chosen production rate. Results of the analysis show that the optimal selling price for the EWC remains the same as that in the first model, while the optimal selling price for the new product are affected by the production rate. The results also show that the gradient algorithm fails to converge, thus is no longer suitable for the second model due to the complexity caused by the boundary conditions. A more robust control vector parameterization method is then developed to compute the numerical solution. Analysing the third model theoretically indicates that some necessary conditions related to the optimal wholesale price and the optimal retail price must be satisfied for the existence of an open-loop Stackelberg equilibrium. Some important managerial insights are derived on the basis of the properties characterizing the optimal solution. The control vector parameterization method is then further developed to solve the differential game problem. Numerical experiments are then carried out to demonstrate which distribution channel results in the largest profit. DOI: 10.5353/th_b5435661 Subjects: Warranty Pricing
Author: Kamonkan Laksana
Publisher:
ISBN: 9780549277538
Category :
Languages : en
Pages : 188
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Book Description
Extended warranties provide "piece of mind" to a consumer in that product failures which occur after the base warranty expires are rectified at little or no cost. They also provide an additional source of revenue for manufacturers or third party providers. We analyze a number of extended warranty contracts which differ in design, including restrictions on deferrals and renewals. With the use of dynamic programming, we compute the optimal strategy for a consumer with perfect information and determine the optimal pricing policy for the provider given the consumer's risk characterization. We illustrate how profits can be dramatically increased by offering menus of extended warranty contracts, as opposed to stand alone contracts, with the use of integer programming. Extensions of this work utilize the dynamic programming approach to examine the consumer's behavior in light of technological change (improvement in the product's reliability) and competition for service contracts from multiple providers. This information provides input to an original equipment manufacturer as to how they should plan product improvement programs when refreshing designs. The investment cost, warranty period, and market conditions are crucial factors for determining the optimal design refresh program from a manufacturer's perspective.
Author: D.N.Prabhakar Murthy
Publisher: Springer Science & Business
ISBN: 1447164407
Category : Technology & Engineering
Languages : en
Pages : 405
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Book Description
Serving to unify the existing literature on extended warranties, maintenance service contracts and lease contracts, this book also presents a unique perspective on the topic focussed on cost analysis and decision-making from the perspectives of the parties involved. Using a game theoretic approach together with mathematical modelling, results are presented in an integrated manner with key topics that require further research highlighted in order to serve as a starting point for researchers (engineers and statisticians) who are interested in doing further work in these areas. Designed to assist practitioners (managers, engineers, applied statisticians) who are involved with extended warranties, maintenance service contracts and lease contracts, the book provides them with the models and techniques needed for proper cost analysis and effective decision-making, The book is also suitable for use as a reference text in industrial engineering, applied statistics, operations research and management.
Author: Shabnam Rezapour
Publisher: CRC Press
ISBN: 1351381229
Category : Business & Economics
Languages : en
Pages : 276
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Book Description
A fail-safe supply network is designed to mitigate the impact of variations and disruptions on people and corporations. This is achieved by (1) developing a network structure to mitigate the impact of disruptions that distort the network structure and (2) planning flow through the network to neutralize the effects of variations. In this monograph, we propose a framework, develop mathematical models and provide examples of fail-safe supply network design. We show that, contrary to current thinking as embodied in the supply network literature, disruption management decisions made at the strategic network design level are not independent from variation management decisions made at the operational level. Accordingly, we suggest that it is beneficial to manage disruptions and variations concurrently in supply networks. This is achieved by architecting fail-safe supply networks, which are characterized by the following elements: reliability, robustness, flexibility, structural controllability, and resilience. Organizations can use the framework presented in this monograph to manage variations and disruptions. Managers can select the best operational management strategies for their supply networks considering variations in supply and demand, and identify the best network restoration strategies including facility fortification, backup inventory, flexible production capacity, flexible inventory, and transportation route reconfiguration. The framework is generalizable to other complex engineered networks.
Author: Maria Octoviany
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Business is something that is complicated in living it. When a business is built, there will be new product products produced and when the product can be produced, the way to sell it is by setting an effective price so that it can cause customer interest to be able to buy the products that the business produces. Therefore, price is something crucial that needs to be considered the most and needs to use various strategies so that later the output produced can really be maximized. In this article, we will discuss what factors need to be considered in setting prices and also 8 strategies for applying prices to new product products that can be used as a foundation in a business. The strategies are: 1) Loss Leader Pricing, 2) Competition Based-Pricing, 3) Dynamic Pricing, 4) High Low Pricing, 5) Basing Point Pricing, 6) Captive Pricing, 7) Skimming Pricing, 8) Penetration Pricing,9) Keystone Pricing,10) Market based pricing.
Author: Zhefang Zhou
Publisher:
ISBN:
Category :
Languages : en
Pages : 113
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Product warranties have been an integral part of production and marketing strategies for a manufacturer to gain market shares and control quality related costs. Since offering aggressive warranty polices could result in a very high cost to a manufacturer, effective design of warranty policies is crucial for him to succeed in today's competitive world.
Author: Pil Hwa Yoo
Publisher:
ISBN:
Category :
Languages : de
Pages : 38
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Author:
Publisher:
ISBN:
Category : Government purchasing
Languages : en
Pages : 1512
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Author: Abel P. Jeuland
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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