Two-dimensional Extended Warranty Strategy Design For New And Remanufactured Products

Servitization of manufacturing industry has become a new trend of manufacturing industry development.In addition to the overall improvement of product quality,perfect after-sales service is also an important sign of both the improvement of enterprises competitiveness and a strong manufacturing industry.As an important part of after-sales service,extended warranty service(’extended warranty’)is not perfect in its supervision and management system,and its pricing strategy is not scientific and comprehensive.Under this background,this dissertation combines the problems found in the research of durable goods enterprise,relevant data analysis and literature research to carry out the following research work.First,the dynamic pricing strategy and optimization of two-dimensional extended warranty for new product from the perspective of dealers are proposed.Product extended warranty strategy and its pricing design are not only affected by reliability engineering factors in each stage of product life cycle,but also affected by fluctuating market factors.First,a dynamic cost model is established that considers the phase of product design phase,manufacturing,sales,and after-sales.Then,in view of the impact of product dynamic engineering factors on product pricing and the impact of herd consumption behavior on demand,dynamic product and its two-dimensional extended warranty demand models are established.The two-dimensional extended warranty policy and its pricing issues are strategically designed and optimized to maximize dealers’ profits.In addition,the necessary and sufficient conditions for the existence of solutions for dynamic pricing strategy design are given.At last,simulation experiments are conducted to verify the effectiveness and feasibility of the model.Second,the two-dimensional extended warranty pricing strategy design for new products from the perspective of consumers and dealers are established.In view of the long service life and high price of durable consumer goods,consumers’ purchase behavior is relatively rational,which requires enterprises to design personalized extended warranty policies and pricing design to meet consumers’ personal needs on the basis of understanding consumers’ ”psychological evaluation”.By considering the different usage rates of consumers,different extended warranty purchase nodes,different maintenance measures and the actual failure process of the product,extended warranty cost for the product are analyzed.In order to achieve a win-win situation of consumers and dealers,two-dimension product extended warranty policy and its pricing design are established from a bilateral perspective.Finally,the theory and method proposed by this research are verified by automobile case in China.Third,from the perspective of circular economy,the pricing strategy and optimization design of two-dimensional extended warranty for remanufactured products in the late stage of the product life cycle are constructed.Based on the price and sales volume of the new products sold in the first stage,considering the product recycling stage and remanufacturing processing stage in the life cycle of the remanufactured products,the cost model of the remanufactured products and the extended warranty cost model are set up.As a new industry,remanufactured products are not widely recognized by consumers.Therefore,considering the acceptability of remanufactured products,a demand function of remanufactured products and the two-dimensional extended warranty demand model are established so as to maximize the profits of dealers.At the same time,the characteristic coefficients of remanufactured products,including recycling rate and remanufacturing level,are discussed and analyzed.Based on the proposed methods,this dissertation enriched the relevant theories of two-dimensional extended warranty pricing strategy for durable consumer products,and provided scientific theoretical guidance for dealers to solve the main problems faced in two-dimensional extended warranty pricing.