Research Based On The Consumer Utility Durable Goods Enterprise Lease Pricing

As an important component of the national economy, durable goods economy provides researchers of microeconomics theories with a great number of topics worthy of study. In China, with the rapid development of economy, both the capacity of supply end and consumption end of durable goods has grown significantly. Such growth is characterized by a process in which the consumption focus of durable goods has shifted from low end to high end, from "old four major items" to "new four major items" and eventually to such high-class consumer durable goods as cars and commercial housings. Currently, the volume of production and marketing of cars in China has been the first in the world for several consecutive years.Despite the remarkable achievement in durable goods industry in the past three decades, it is worth continuous attention and study that complicated and profound changes are happening in the market of durable goods and with them new phenomena and problems are emerging constantly. For instance, the marketing of new cars in China has long been carried out by sales but this mode is changing. On December18th,2009, the E Rent a Car service provided by Dongfeng-Nissan made its official debut. It is a brand-style car-renting service targeted at the company’s car buyers or potential car buyers with the support of the service network and service capacity of its franchises, In2010, some upscale car brand like Faw-VW Audi, Beijing Benz and BMW also entered the car rental market one after another. At the same time, ever-higher social productivity level results in the excess supply of most of the durable goods instead of shortage in the past and consequently the consumers have more and more options. As a result, the behavior differences of different types of consumers in selecting goods are notable.To address such new phenomena and problems, this paper studies issues related to single product and product series, information symmetry and information asymmetry and monopoly and oligarch competition from a consumer utility point of view and with the rental of durable goods as the study object. This paper consists of five parts with a conclusion and outlook after them.(1) Research significance and research actuality This part analyzes the changing trend in the current durable goods market and presents the study background and significance; then, it reviews the research findings on durable goods at home and abroad in a general way, on the basis of which it points out issues worth further study and introduces the study objective and basic content of this paper.(2) Study on the rental pricing of single durable goods provided by durable goods manufacturersIn this part, on the basis of consumer utility, the renting habits of different types of consumes are obtained by analyzing their renting choice behavior. After this, a study is made on the durable goods manufacturers’ pricing decision problem in two periods using dynamic programming. On such basis, a further study is conducted on the effect of old durable goods on the replacement competition of new durable goods faced by enterprises doing rental business.(3) Study on the rental pricing of two durable goods of different qualities provided by durable goods manufacturersThis part considers a situation in which the durable goods manufacturer provides two types of goods with different qualities at the same time which means, in the second period, the consumers have four different durable goods to choose from. The analysis on the renting behavior of the consumers leads to the conclusion that durable goods combinations of different qualities and prices automatically divide consumers into different groups. Then, a study is carried out on the optimum rental pricing decision from the durable goods manufacturers and an analysis is made on its characteristics.(4) Study on the rental pricing problem in the case of information asymmetryThis part studies the durable goods manufacturer’s rental and reverse selection problem on the assumption that there is information asymmetry between the enterprise and consumers over the quality of old durable goods and the price of new durable goods changes dynamically on two periods. On this basis, an example analysis is carried out.(5) Study on the rental pricing problem in the case of duopolyThis part studies the duopoly dynamic game of two duopolistic durable goods enterprises on two periods considering the situation in which there are two major durable goods rental providers which have a great say over the market and the products they offer to consumers are of different qualities. On this basis, a further analysis is made using MATLAB simulation on the effect of durability and competitive intensity on the game equilibrium of duopoly durable goods manufacturers.