Marketing Strategies On Warranty And Extend Warranty Services For Durable Goods Enterprises

With the global economic environment changing and the emergence of new business models,the main way of the competition between enterprises changes from the product price into price and value-added services comprehensive strength of the contest,especially the enterprises which manufacture durable goods with a longer period of use,higher value characteristics.Consumers buying durable goods not only concerned about the quality and price of the product itself,but also concerned about the services provided by the enterprise during the process of using the product.And the product warranty service period is an important indicator that measure how about the after-sale service is.As consumers can not directly observe the product quality level,warranty period passes an effective signal to convey product quality information.The longer warranty period means the more reliable product quality assurance.Therefore,many of durable goods manufacturing enterprises recognize after-sales service as an important marketing strategy to improve customer satisfaction and loyalty,and according to relevant research reports,the benefits of after-sales service has gone beyond the traditional marketing methods.Of course,some durable goods companies also introduced a paid extended service strategy,and consumers only need to pay a certain fee for continuing to enjoy free warranty service when the product exceeds the warranty period after a certain period of time.The launch of this service not only reduces the user's risk of using the product beyond the warranty period,but also it is a new source of growth for corporate profits.The after-sales services enterprises provide meet the needs of consumers to obtain services,but users will produce dissatisfaction or complain about the emotional effect at the same time with enjoying the service.The emotional effect of the consumer will affect the effectiveness of the enterprise's implementation of the service strategy.Therefore,based on the consideration of consumers' emotional effect and without considering consumers' emotional effect,this paper analyzes product equilibrium price,discusses the impact of the quality assurance service strategy and the extended service strategy on the equilibrium price of the product,and further study the disadvantages of durable goods enterprises how to use the warranty service strategy and extended service strategy to reverse its competitive disadvantage,from the point of view of consumer utility and the condition that the product faulty is random and obeys the exponential distribution.The main part of the paper can be divided into four main parts:In chapter 3,we don't consider the emotional utility of consumers,and establish a differential game model to discuss the impact of unit product warranty service input and product warranty period on the equilibrium price of duopoly products.The conclusion is that the higher the product warranty service of the durable goods enterprises,the longer the warranty period and the higher the equilibrium price of the products.However,the relationship between the product investment service and the warranty effect on the consumer utility affects the price of the competitor under the equilibrium.The inferior enterprises can increase the product quality assurance service investment or extend the warranty period of to narrow the price difference with the high-quality products,and further can be achieved the same price as high-quality enterprises under the balance.But the strategy of increasing product warranty service investment is better than the strategy of extending the warranty period.In chapter 4,we do not consider the emotional utility of the consumers,establish the dynamic differential game model,discuss the impact of the extended service price and the extended period on the equilibrium price of the product,and further analyze how the inferior vendors can use the extension service strategy to reverse the disadvantage in the market.The conclusion shows that if the firm increases the price of the extended price,the equilibrium price of the product will be reduced.The existence of an extension period can minimize the equilibrium price of the product.The inferior enterprises can adopt reducing the extension of service price strategy and increasing service investment strategy to reverse its weakness in the market competition;and under certain conditions,extending the extension period could not reverse the disadvantages of inferior enterprises.In chapter 5,we consider the consumer's emotional utility to construct the duopoly differential game model,study the equilibrium price of durable goods and the impact of the quality of service and the impact of the warranty period on the equilibrium price,and further analyze the effectiveness of service input strategy and warranty period strategy for inferior enterprises.The results show that the equilibrium price of high quality durable goods is proportional to the proportion of warranty service and warranty period,and the equilibrium price of low quality durable goods increases with the increase of warranty service investment,but the change of warranty period characteristics with service investment is relate to the investment.For the inferior durable goods enterprises,the strategy of increasing investment to reduce the price difference with the high quality enterprise is effective,but the effectiveness of extending the warranty period to reduce the price difference is relate to theinvestment level.In the case of inferior durable goods enterprises to take two strategies to reverse its price disadvantage are effective,increasing the quality of service investment is the optimal strategy to achieve no price difference with high quality products.In chapter 6,we consider the influence of consumer sentiment and construct the duopoly differential game model to study the influence of the extended service strategy of the durable enterprise on the equilibrium price of the product,and further discuss the validity of the extended service strategy.The conclusion is that the input of the service is different in different ranges,and the equilibrium price of the product varies with the increment of the service investment.The equilibrium price of the extended service of the high quality product is proportional to the service investment,and the change of service price with the increasing of service investment is also related to the failure rate and extension period for inferior enterprise.The trend of the equilibrium price of durable goods is affected by the warranty period and the extension period,which show different characteristics with the service investment,failure rate and consumer utility change.For the inferior enterprises,the service investment to meet greater than 1,to increase the service investment to reduce the price difference with the high-quality products is effective,and it can achieve the same price with high-quality products to sell products.But only under certain condition,it is effective to extend the warranty period and the extension of the strategy to narrow the price difference with the high quality products.