Is it wise to offer rebates for unused extended warranties under trade-in programs in supply chains?

Cao, Kaiying; Su, Yunyi; Han, Guoxin; Choi, Tsan-Ming

doi:10.1016/j.tre.2022.102915

Cited by 8 publications

(1 citation statement)

References 56 publications

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“…As market behaviors promote product upgrading, trade‐in programs can attract consumers and stimulate their purchasing behavior (Purohit, 1995; Ray et al, 2005). In terms of market share and profit, trade‐in programs bring competitive advantages to the manufacturer (Agrawal et al, 2016; Cao et al, 2022; Dong et al, 2023; Ferrer & Swaminathan, 2006; Li, Jia, & Zheng, 2022; Li, Wang, et al, 2022; Quan et al, 2021). The decision whether to launch trade‐in programs has been considered in some papers.…”

Section: Literature Reviewmentioning

confidence: 99%

Updated‐generation product introduction decisions under trade‐in programs and different pricing strategies

Fan,

Zhao,

Zhu

2024

Manage Decis Econ

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Manufacturers introduce updated‐generation products to meet intensified competition under trade‐in programs. Based on this phenomenon, we built a two‐period game‐theoretic model, in which the manufacturer sells the old‐generation product during both periods and considers whether to introduce the updated‐generation product in the second period. We find that under a static pricing strategy, if the costs of both products are low, the updated‐generation product's entry increases the old‐generation product's retail price. The manufacturer cannot benefit from introducing the updated‐generation product if the updated‐generation product's cost is high. Under a dynamic pricing strategy, the updated‐generation product entry benefits both the manufacturer and the consumer.

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Section: Literature Reviewmentioning

confidence: 99%

Updated‐generation product introduction decisions under trade‐in programs and different pricing strategies

Fan,

Zhao,

Zhu

2024

Manage Decis Econ

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Optimal extended warranty strategy considering channel perception and endogenous quality

Zhang,

Gao

2024

Manage Decis Econ

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Extended warranties (EWs) are common in online sales, available from various providers. Manufacturers are typically perceived as better repairers, making their EWs more valuable than retailers'. We explore four cases: no provider (Model N), manufacturer‐provided (Model M), retailer‐provided (Model R), and dual‐provider (Model B). Initially, we analyze exogenous quality, then consider endogenous quality with variable failure rates (Models VN, VM, VR, and VB). While product demand is consistent, EW demand varies across models. Dual‐channel EWs (Model B/VB) maintain manufacturer EW demand but reduce retailer EW demand. They increase profits under exogenous quality but may not under endogenous quality.

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Compete or cooperate? Effects of channel relationships on government policies for sustainability

Dou,

Choi

2024

European Journal of Operational Research

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Is it wise to offer rebates for unused extended warranties under trade-in programs in supply chains?

Cited by 8 publications

References 56 publications

Updated‐generation product introduction decisions under trade‐in programs and different pricing strategies

Updated‐generation product introduction decisions under trade‐in programs and different pricing strategies

Optimal extended warranty strategy considering channel perception and endogenous quality

Compete or cooperate? Effects of channel relationships on government policies for sustainability

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