Authors
Ruxian Wang, Chenxu Ke, Shiliang Cui
Publication date
2022/1
Journal
Manufacturing & Service Operations Management
Volume
24
Issue
1
Pages
430-447
Publisher
INFORMS
Description
Problem definition: In this paper, we develop an integrated framework to study a firm’s joint decisions on product price, quality, and service duration in a variety of monopolistic and competitive scenarios. Academic/practical relevance: Product price, quality, and ancillary service (such as maintenance and factory warranty) are arguably among the most important factors consumers consider when making a purchase decision. Meanwhile, they are also seen as effective instruments for firms to achieve market segmentation. We consider a cost structure for a firm in which the service cost depends on the product quality level. In particular, if quality is associated with product reliability (respectively, complexity), the service cost would decrease (increase) in the quality level. Methodology: We adopt the widely used multinomial logit model and the nested logit model to study consumers’ choice behavior and employ mixed …
Total citations
2020202120222023202413171923
Scholar articles
R Wang, C Ke, S Cui - Manufacturing & Service Operations Management, 2022
R Wang, S Cui - Service and Pricing (September 25, 2017), 2017