Research On Product-oriented Product Service System Value-added Mechanism

Product Service System (PSS) is a new concept explored by manufacturers thatare facing fierce competition in market. According to bundling service into product,PSS can help manufacturers extending its profit space, and at the same time it canhelp manufacturers enhance the core competitiveness of their products as it can helpconsumers avoid risk. The paper focus on the mechanism how product-oriented PSSenhance manufacturers profits, and divides it into three parts:Firstly, establishing the measurement model of customer perceived gains. Usingconsumer perceived gains of electric vehicles as an example, it finally finds sevenfactors that effecting consumer perceived gains with statistics methods.Secondly, discussing how product-oriented PSS enhance profits detail. Asconsumers perceived gains have been known, the consumer utilities model can bebuilt with introducing consumers risk aversion index and perceived gains sensibilityindex. Then the manufacturers and the service provider profits model can begenerated after calculating the number of consumers buying different types ofproduct basing on products’ and consumers’ character. Furthermore, the model issolved with dynamic game theory, and the equilibrium prices are found. It is can befound that selling service period to consumers can enhance the manufacturers profitsas well as enhancing product sales if manufacturers want to maximize profits, and italso can be found that the products sales can be increased significantly if manufacturers want to maximize sales.At last, the characters of products that fit to match product-oriented PSS aresolved after comparing different models. The concepts of net present value and profitrate of cost are introduced into analysis model. It can be found that consumersperceived gains and some other characters are factors that determine the best modelof products.In this paper, the mechanism how product-oriented PSS enhance manufacturersprofits is discussed detail with quantitative research, and it has a significance tomanufacturers.