Study On The Price Strategies And Development Of Chian's Used Automobiles Market

Information asymmetry is a basic feature of used automobiles, and a stable and mature market of used automobiles should possess such feature within measure. However, China's market not only lacks a standard and normative business pattern and evaluation system, but also has no perfect internet of nationwide used automobiles market information and no advanced idea of after service. In such environment of market, a severe problem of asymmetry of information of our used automobiles market arose, which not only frustrated the consumption of used automobiles but also affected the continuity, stability and speed of the used automobiles market.The development of international automobiles industry shows that a thriving new automobiles market must be based on the possession of a stable circulating market of used automobiles. As an important link of automobiles industry chain, the healthy development of the market of used automobiles plays an important role in the development of China's automobiles industry. However, compared with the rapid development of new automobiles market, China's used automobiles market has been quite lagged behind. Therefore, to analyze China's used automobiles market from new perspectives and to reduce the degree of market information asymmetry in different levels is very significant for the development of China's used automobiles.This dissertation starts from the quality-contingent pricing theory to analyze how the used automobiles dealers employ this theory to make pricing strategies in the current market environment so as to achieve the maximum of enterprise profits. On the basis of defining the probability of quality evaluation and for the purpose of achieving per expected revenue maximization, this theory builds a model of quality-contingent pricing. It not only establishes the theorizing foundation for the optimum pricing and discount, but also proves from the angle of prices that the lower the degree of asymmetry, the more possible it is for the enterprises and customers to achieve the maximization of benefit. In this framework of theory, this dissertation further illustrates that in the current used automobiles market, the free will evaluation policy, put forward by the government, aiming at developing the used automobiles market, can not achieve the expected effect, aside from this, it would hinder the development of the market as well. Therefore, on the basis of the screening theory, this paper proposes that our used automobiles market should employ the evaluation policy of reducing the evaluation costs and establish the used automobiles association to perfect the entrance approval system and punishment system. At last the paper proposes to establish a comprehensive trade mechanism of used automobiles market and stresses the theory of distribution of used automobiles and the theory of after service.This dissertation comes to such conclusion: in the current used automobiles market environment, instead of the single pricing strategy, quality-contingent pricing strategy should be employed to reduce the uncertainty of buyers'feeling for quality of goods so that the enterprise could show information relevant to the quality to the consumers; On the part of the government, it is not appropriate for it to employ the free will evaluation strategy, but instead an industry organization---used automobiles association--- should be established; At last the author proposes to improve the used automobiles environment from the aspect of the used automobiles distribution enterprises, that is, the distribution enterprises of used automobiles should establish a comprehensive distribution system and a good after service system.This paper provides the distribution enterprises of used automobiles some use for reference on how to make a reasonable pricing mechanism in the current used automobiles market environment. In addition, it also provides supportive evidence for government and enterprises to operate the used automobiles market persistently and effectively.