Bundling and pricing of product with after-sale services

Kameshwaran, S. ; Viswanadham, N. ; Desai, Vijay (2009) Bundling and pricing of product with after-sale services International Journal of Operational Research, 6 (1). pp. 92-109. ISSN 1745-7645

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Official URL: http://www.inderscience.com/info/inarticle.php?art...

Related URL: http://dx.doi.org/10.1504/IJOR.2009.026245

Abstract

Bundling is the sale of two or more products in combination as a package. In this paper, we consider the bundling and pricing of a complex durable product with the after-sales repair and maintenance services. The product and service are two different, but related markets for this scenario. The problem of bundling and pricing are considered for two product market structures: monopoly and duopoly. In the monopoly case, the decision framework is an optimisation problem, whereas for the duopoly, the strategic interactions of the two firms are modelled as a two stage non-cooperative game. These decision frameworks enable the manufacturing firms to decide upon the product-service bundling and pricing.

Item Type:Article
Source:Copyright of this article belongs to Inderscience Enterprises Limited.
Keywords:Manufacturing Service Integration; Product Bundling; Non-cooperative Game; Sub-game Perfect Equilibrium; Product Pricing; After-sale Services; Complex Products; Durable Products; Repair; Maintenance; Monopoly; Duopoly
ID Code:97765
Deposited On:11 Nov 2013 10:34
Last Modified:11 Nov 2013 10:34

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