OEM‐servicizing with a multiusecycle product: Model analysis and insights
Yinshi (Agnes) Gao,
Saurabh Bansal,
V. Daniel R. Guide
Abstract:Customers of many OEMs in business‐to‐business markets today demand product‐servicizing in which instead of buying the product from the OEM they buy the use of a product during a lease. During the lease, (i) the customer uses the product and returns it to the OEM after the use reaches a specific level, (ii) the OEM remanufactures the product in a costly process and sends it back to the customer, and this usecycle is repeated multiple times. The lease terms typically involve a use‐based payment. While a greater… Show more
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