Pricing Of The Extended Warranty

Nowadays,more and more people focus on the warranty which is veryimportant to market stable and development.And when buyers buyproducts,they consider more on the warranty. Furthermore,everyone inmodern society faces more keen competition. Since1960s,researchers fromall of the world has obtain much achievement. Now Chinese companies havealso focus more on the warranty,and recognize it as a new method formarketing.And the extended warranty also become more and more importantfor the domestic researchers managers and buyers.But the results of extendwarranty research are still much poor,so this paper focus on the research ofextended warranty among manufacturers repairer and buyers,provide newmodel,to decide the best pricing.First all,this paper introduce some old theories of warranty the currentsituation of research in china and other countries and the tactics ofwarranties.In the first part, we will consider the long-run average cost per unittime,and use a less flexible tactics,then we can get a Optimalsolution.Further we will consider a situation if the price will be changed.In the second part, we will consider total expected discounted cost of aless flexible tactics and a flexible tactics.The result could help manufacturers provide more effective tactics forextended warranty.