Research on Pricing and Extended Warranty Strategy of E-commerce Products under Hybrid sales model

In this paper, we consider a manufacturer selling products on an e-commerce platform using a hybrid sales model, construct three decision models based on different providers of extended warranty for the products, respectively, conduct a game analysis to determine the optimal decisions of the manufacturer and the e-commerce platform, and compare the product pricing and extended warranty strategies of the different models, and analyze the impact of the relevant parameters on the decisions. The results of the study show that for manufacturers, it is optimal for e-commerce platforms to provide extended warranties when the market expansion effect of extended warranties on product demand is weak, and vice versa; the intensity of competition between manufacturers and e-commerce platforms raises the wholesale price of the product, which in turn pushes up the selling price of the product; and the impact of the potential market share of resale channels on the profits of both parties is more pronounced, and manufacturers and e-commerce platforms are concerned with thecompetition for market share.

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Publication Details

Published
2024-09-20
DOI
https://doi.org/10.1145/3705618.3705668
Primary Topic
Supply Chain and Inventory Management
Type
article
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article

Research on Pricing and Extended Warranty Strategy of E-commerce Products under Hybrid sales model

Peng Wan, Qingqing Xu, Xuepu Zhao
Supply Chain and Inventory Management
article

Research on Pricing and Extended Warranty Strategy of E-commerce Products under Hybrid sales model

Peng Wan, Qingqing Xu, Xuepu Zhao
article en

Abstract

In this paper, we consider a manufacturer selling products on an e-commerce platform using a hybrid sales model, construct three decision models based on different providers of extended warranty for the products, respectively, conduct a game analysis to determine the optimal decisions of the manufacturer and the e-commerce platform, and compare the product pricing and extended warranty strategies of the different models, and analyze the impact of the relevant parameters on the decisions. The results of the study show that for manufacturers, it is optimal for e-commerce platforms to provide extended warranties when the market expansion effect of extended warranties on product demand is weak, and vice versa; the intensity of competition between manufacturers and e-commerce platforms raises the wholesale price of the product, which in turn pushes up the selling price of the product; and the impact of the potential market share of resale channels on the profits of both parties is more pronounced, and manufacturers and e-commerce platforms are concerned with thecompetition for market share.

Qingdao University of Technology (CN)
Industry, innovation and infrastructure
Openalex Percentile: Top 62%
Supply Chain and Inventory Management
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Research on Pricing and Extended Warranty Strategy of E-commerce Products under Hybrid sales model — Peng Wan, Qingqing Xu, et al. · (2024) | TGRS Research Map | TGRS