Study On Leasing And Selling Strategies And Financial Leasing Pricing Strategies For Durable-goods Manufacturers

Since the reform and opening up in 1978,China has seen a rapid economic growth.And it has led to the continuous prosperity of durable goods market as well.After China joins the WTO,many multinational enterprises enter the market of China,which has intensified the competition.Meantime,both manufacturers and consumers are facing capital constraints due to the impact of the financial crisis.All these changes in market environment put forward higher requirements on the management level and profitability of durables manufacturers.Therefore,they have to innovate continuously and provide consumers with better products and services,to struggle for the market share and profit.One of the important changes is the innovation in marketing channels,especially the development of leasing channel.The Leasing goods is popular with many consumers because of its flexible operation and low price,as you can return it to the company whenever you don't need it.Obviously,it's an important concern for durable goods companies to choose between leasing and selling.Based on the existing theory and development of construction machinery market in China,this article analyzes the durable goods monopolist's profit level under different various strategies with mathematical models and obtains the optimal prices and production,which provides management insights for those manufacturers on their channel selection and pricing strategies.At first,this article summarizes the existing literatures referring to durable goods,and puts forward some new questions about the he development status of Chinese construction machinery market.Then,based on consumer utility theory,an infinite horizon selling model is constructed to compare the profit of manufacturers under different pure channel strategies.the effect of market structure and product quality is discussed as well to explain the advantages of leasing channel.Later,this article introduces an extended model in which the manufacturer operates two channels at the same time.On the one hand,the relationship between the leasing and selling channels under strategy strategy is analyzed,which has indicated the dominant position of leasing channel.On the other hand,this section also studies the influence of the leasing agent.Finally,a basic financial leasing pricing model is constructed,based on the practice of construction machinery financial leasing industry in China.And it is optimized from the perspective of payment method,which offers a guidance for those manufacturers that want to enter the financial leasing market of construction machinery.