Study On The Warranty Pricing Strategy For Second-hand Product Considering Quality Improvement

Nowadays product warranty has a close relationship with corporate profits and gets increased application. Naturally it arouses widespread concern both in academic aspect and reality. Currently the related researches about new product warranty issues are more than second-hand product warranty issues. Along with the rapid development of the second-hand market, the problems of second-hand product in the process of trading begin to appear:consumers can’t protect their rights when product fails. It is easy to know that warranty service has become one of the important factors which restrict the development of the second-hand market. Existing product warranty pricing strategies of second-hand products are mainly from a one-dimensional point of view, which can’t meet the needs of different types of product warranty. Taking into account the use history of second-hand products and quality uncertainty, develop a reasonable warranty strategy concerned the second-hand product features becomes a serious problem.This thesis combined the second-hand product quality improvement strategy with warranty pricing issues and built profit model from the view of one-dimensional warranty. Optimization method was used to maximize profits for decision-making target. And the optimal improvement level and optimal warranty price was studied. Then the impact on gross profit using improvement strategy and do not use was analysed, and found that using improvement strategy can effectively reduce costs and thus increase the total profit. Then two-dimensional warranty profit model was built considering the consumers’different usage on the basis of one-dimensional warranty. And get optimal warranty pricing strategies on different consumer’ usage. The optimal warranty pricing strategies was got on the different consumers’ usage. At last, verified the validity of the model and the correctness of the conclusions and provided a reference for the practical application of the model.