Trade-in strategy by Considering User Maintenance Costs

• Main Authors: Ya-Chi Hsu, 許雅棋
• Other Authors: 陳振明
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/81894438809815081959

碩士 === 國立中央大學 === 工業管理研究所 === 103 === In durable product market, replacement purchasing decisions represent a significant portion of the total sales. To increase sales and purchasing frequency by the customers, more and more original equipment manufacturers use trade-ins strategy for price discrimination between new and replacement buyers of durable products. The study analyze and compare two benchmark scenarios with and without trade-ins provided by the firm. The analytical model is developed under stationary equilibrium to investigate the impact of trade-in rebates on the consumer behaviors. We also consider that incorporates the key durable goods features into model formulation, specifically the user maintenance costs, the deterioration rate (or durability) and the variation in quality of the used goods. In our analysis, trade-in rebates will increase as the deterioration in quality increasing, but decreasing in the user maintenance costs