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Combination Pricing Strategy Of Product-Extended Warranty In Online Shopping Supply Chain Considering Channel Structure And Service Mode

Posted on:2024-05-02Degree:MasterType:Thesis
Country:ChinaCandidate:W JiangFull Text:PDF
GTID:2569306917991489Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
In recent years,the fierce competition has led to thin profits in the product market,and companies have put their emphasis on the field of after-sales service to enhance their core competitiveness.The extended warranty is highly valued by enterprises for its good performance in terms of profitability and service experience,and supply chain node enterprises have provided extended warranty to realize the extension of the value chain.However,in the practice of extended warranty operation and management,there are still problems that need to be solved.In terms of the extended warranty model,due to the heterogeneity of the cooperation model between enterprises,service providers need to further clarify the optimal extended warranty model under the differentiated channel structure;in addition,in terms of extended warranty competition strategy,online stores have the advantage in the extended warranty market,and manufacturers have to innovate the extended warranty operation strategy under the differentiated channel structure;in terms of managing product quality risk,product quality risk affects product and extended warranty decisions,and companies still need innovative risk management tools.Based on the above practical issues and considering the channel structure,this paper studies the optimal service model,sales method,operation strategy of the extended warranty,and the best decision to deal with product quality risk in the online service supply chain,and explores the joint pricing strategy of product extended warranty based on the above supply chain structure.The specific research contents are as follows.First,the problem of service model selection under differentiated channel structure is addressed.We mainly study the optimal provision and sales strategies of the extended warranty in the online shopping supply chain under the differentiated channel structure,and explore the pricing decisions of product and extended warranty under different scenarios.A secondary supply chain consisting of a manufacturer and an online store is constructed,and the equilibrium solution of manufacturer-provided extended warranty and online store-provided extended warranty is compared and analyzed in the context of the online store’s own channel and the manufacturer’s direct sales channel.The bundled sales strategy of product and extended warranty is further extended.The study shows that the enterprise with lower extended warranty costs should provide extended warranty under the online store’s own channel,and it should reduce the retail price of the product and the price of the extended warranty to maximize profits;under the manufacturer’s direct sales channel,when the extended warranty commission rate is high,the online store should provide the extended warranty,while the manufacturer will increase the retail price of the product to compensate for the loss;the extended warranty bundling strategy depends on the additional valuation of the bundled product,if the additional valuation is higher,then the extended warranty should be bundled under the manufacturer’s direct sales channel,while the extended warranty will be sold separately under the online store’s own channel.Furthermore,the issue of complimentary extended warranty competition strategy for differentiated channel structure.This paper innovatively proposes a complimentary extended warranty,studies the interaction between paid and complimentary extended warranties under a differentiated channel structure,and discusses the pricing strategy of products and extended warranties under different models.The main analysis is to compare the equilibrium solutions of the manufacturer not providing complimentary extended warranty and providing complimentary extended warranty under the differentiated channel structure,and to give manufacturers the optimal provision strategy about complimentary extended warranty.The study shows that regardless of the channel structure,manufacturers should offer complimentary extended warranties if the number of knowledgeable consumers is high,and online stores also benefit from complimentary extended warranties to some extent.The presence of complimentary extended warranties raises the retail price of products,but does not affect the pricing strategy of paid extended warranties.Finally,the issue of product quality risk management tools in the extended warranty supply chain needs to be innovated.The study investigates the introduction of commercial insurance to manage product quality risk in the context of an online store that chooses its own channel and provides extended warranties,explores the optimal purchase strategy of commercial insurance in the supply chain,and compares the equilibrium solutions of product and extended warranty with and without commercial insurance strategy and corporate profits.The study shows that online store should adopt differentiated commercial insurance strategies when cooperating with different manufacturers with different risk tolerance,on one hand,the online store should choose to purchase low-premium commercial insurance when playing with manufacturers with low risk tolerance,and premiums positively influence product pricing decisions but do not effect extended warranty pricing strategies;on the other hand,it should not purchase commercial insurance when playing with manufacturers with higher risk tolerance.This study enriches the theory of service model and operation strategy in the extended warranty supply chain,reveals the pricing strategies of products and extended warranties under different supply chain structures,and provides some references for enterprises in similar environment in reality...
Keywords/Search Tags:extended warranty, pricing, model choice, distribution contract, consumer behavior
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