PRICE AND SERVICE COMPETITION WITH MAINTENANCE SERVICE BUNDLING 被引量：6

PRICE AND SERVICE COMPETITION WITH MAINTENANCE SERVICE BUNDLING

导出

摘要 In many equipment manufacturing industries, firms compete with each other not only on products price, but also on maintenance service. More and more traditional products oriented finns are offering their customers products bundled with maintenance service （P＆S bundles）. In this study, we examine finns＇ incentive to offer customers products bundling with long-term maintenance or repair support service in a duopoly competitive environment. When providing P＆S bundles, a finn need to determine the service level （in terms of average response time guarantee for the service in this paper） to offer and needs to build a service facility to handle the maintenance service requirements. Based on the analysis of three sub-game models, we characterize the market conditions in which only one firm, both finns or neither finn will offer P＆S bundles. Finally, we analyze the affects of serval market factors on firms＇ strategy choices. In many equipment manufacturing industries, firms compete with each other not only on products price, but also on maintenance service. More and more traditional products oriented finns are offering their customers products bundled with maintenance service （P＆S bundles）. In this study, we examine finns＇ incentive to offer customers products bundling with long-term maintenance or repair support service in a duopoly competitive environment. When providing P＆S bundles, a finn need to determine the service level （in terms of average response time guarantee for the service in this paper） to offer and needs to build a service facility to handle the maintenance service requirements. Based on the analysis of three sub-game models, we characterize the market conditions in which only one firm, both finns or neither finn will offer P＆S bundles. Finally, we analyze the affects of serval market factors on firms＇ strategy choices.

作者 Yi Wang Linyan Sun Rong Qu Gang Li

机构地区 Department of Industrial Engineering Department of Industrial Engineering Automated Scheduling Optimization and Planning Group

出处《Journal of Systems Science and Systems Engineering》 SCIE EI CSCD 2015年第2期168-189,共22页 系统科学与系统工程学报（英文版）

基金 supported by the Natural Science Foundation of China(No.61174171) the Fundamental Research Funds for the Central Universities the soft science project of Shaanxi Province State-Sponsored Study Abroad Program of China(CSC) the School of Computer Science,University of Nottingham

关键词 Service competition QUEUES products and service bundles product differentiation Service competition, queues, products and service bundles, product differentiation

分类号 F274 [经济管理—企业管理]

引文网络
相关文献

参考文献19

1Allon, G. & A. Federgruen. (2007). Competition in service industries. Operations Research, 55 (1): 37-55.
2Allon, G. & A. Federgruen. (2008). Service competition with general queueing facilities. Operations Research, 56 (4): 827-849.
3Carbajo, J., DeMeza, D. & Seidmann D, J. (1990). A strategic motivation for commodity bundling. Journal of Industrial Economics, 38(3): 283-298.
4Chen, Y. (1997). Equilibrium product bundling. Journal of Business, 70 (1): 85-103.
5Chen, H. & Wan, Y. (2005). Capacity competition of make-to order firms. Operations Research Letters, 33 (2): 187-194.
6Cohen, M.A. & Whang, S. (1997). Competing in product and service: a product life cycle model. Management Science, 43 (4): 535-545.
7Daniel, M. B. (2001). Product differentiation, competition, and international trade. The Canadian Journal of Economics, 34 (4): 1010-1023.
8Fan, M., Kumara, S. & Whinston, A.B.(2009). Short-term and long-term competition between providers of shrink-wrap software and software as a service. European Journal of Operational Research, 196 (2): 661-671.
9Herrmann, A., Huber, F. & Coulter, R.H.,~ (1997). Product and service bundling decisions and their effects on purchase intention. Pricing Strategy & Practice, 5 (3): 99-104.
10Kameshwaran, S., Viswanadham, N. & Desai, V. (2009). Bundling and pricing of product with after-sales services. International Journal of Operational Research, 6 (1): 92-109.