| Author: | Yang, Hongru |
| Title: | Two selected topics in durable goods marketing strategy from the perspectives of depreciation and maintenance |
| Advisors: | Ng, C. T. Daniel (LMS) Cheng, T. C. Edwin (LMS) Guo, Xiaomeng (LMS) |
| Degree: | M.Phil. |
| Year: | 2023 |
| Subject: | Durable goods, Consumer -- Marketing Product life cycle Hong Kong Polytechnic University -- Dissertations |
| Department: | Department of Logistics and Maritime Studies |
| Pages: | viii, 67 pages : color illustrations |
| Language: | English |
| Abstract: | Durable goods are defined as products which can be stored or inventoried for a long time. The degree of product durability is usually measured in terms of its lifespan or expressed in quality, which is a variable as important as price to consumers. Moreover, after-sales maintenance of durable goods has also become a matter of great concern. Therefore, in this thesis we study two selected topics in the marketing strategy of durable goods from the perspectives of consumption depreciation and maintenance. In the first topic, we study durable goods with consumption depreciation, which are the categories of durable goods, like books, toys, and game cassettes, whose physical properties rarely depreciate but consumption values decline quickly, are especially active in the second-hand and rental platforms. We construct and compare different two-period strategic models of durable goods with a monopolistic manufacturer and obtain some interesting results. First, we focus on the pure leasing and selling strategies, and find that for durable goods the manufacturer’s profit is higher for leasing than that for selling. Besides, we show that the manufacturer of durable goods with consumption depreciation will suffer more from second-hand competition than that without consumption depreciation. Then, we consider two hybrid strategies, i.e., selling-leasing strategy and selling-reselling strategy, and find that both hybrid strategies do not necessarily help the manufacturer gain more profit since they cannot subdivide the market. Furthermore, we make some extensions and verify the robustness of our models. In the second topic, we investigate the maintenance service of durable products. Maintenance has been receiving increasing attention in the manufacturing world, and the development of related technologies has brought about an explosive increase in the performance of equipment maintenance. However, the failure of service providers’ operations strategies to keep pace with the technology results in waste of service providers’ investment. We develop an analytical and mathematical tool for optimizing operational strategies of competing service providers with imperfect online monitoring. Then, we make sensitivity analyses and explore the meaning behind the influences of parameter changes on the strategies, and the results are robust when extending it to the model of n competing service providers. Besides, we find that the weaker party in the competition could benefit from the deterioration of the market when the stronger party suffers a loss. Finally, we summarize a general pattern of the equilibrium consumer arrival rate in response to the optimal service rate. |
| Rights: | All rights reserved |
| Access: | open access |
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