Price and service competition with maintenance service bundling
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 firms are offering their customers products bundled with maintenance service (P&S bundles). In this study, we examine...
| Main Authors: | , , , |
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| Format: | Article |
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Springer
2015
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| Online Access: | https://eprints.nottingham.ac.uk/31075/ |
| _version_ | 1848794123152130048 |
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| author | Wang, Yi Sun, Linyan Qu, Rong Li, Gang |
| author_facet | Wang, Yi Sun, Linyan Qu, Rong Li, Gang |
| author_sort | Wang, Yi |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | 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 firms are offering their customers products bundled with maintenance service (P&S bundles). In this study, we examine firms’ 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 firm 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 firms or neither firm will offer P&S bundles. Finally, we analyze the affects of several market factors on firms’ strategy choices. |
| first_indexed | 2025-11-14T19:11:11Z |
| format | Article |
| id | nottingham-31075 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:11:11Z |
| publishDate | 2015 |
| publisher | Springer |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-310752020-05-04T17:07:39Z https://eprints.nottingham.ac.uk/31075/ Price and service competition with maintenance service bundling Wang, Yi Sun, Linyan Qu, Rong Li, Gang 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 firms are offering their customers products bundled with maintenance service (P&S bundles). In this study, we examine firms’ 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 firm 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 firms or neither firm will offer P&S bundles. Finally, we analyze the affects of several market factors on firms’ strategy choices. Springer 2015-06-01 Article PeerReviewed Wang, Yi, Sun, Linyan, Qu, Rong and Li, Gang (2015) Price and service competition with maintenance service bundling. Journal of Systems Science and Systems Engineering, 24 (2). pp. 168-189. ISSN 1861-9576 Service Competition Queues Products and service bundles Product differentiation http://link.springer.com/article/10.1007/s11518-015-5267-z doi:10.1007/s11518-015-5267-z doi:10.1007/s11518-015-5267-z |
| spellingShingle | Service Competition Queues Products and service bundles Product differentiation Wang, Yi Sun, Linyan Qu, Rong Li, Gang Price and service competition with maintenance service bundling |
| title | Price and service competition with maintenance service bundling |
| title_full | Price and service competition with maintenance service bundling |
| title_fullStr | Price and service competition with maintenance service bundling |
| title_full_unstemmed | Price and service competition with maintenance service bundling |
| title_short | Price and service competition with maintenance service bundling |
| title_sort | price and service competition with maintenance service bundling |
| topic | Service Competition Queues Products and service bundles Product differentiation |
| url | https://eprints.nottingham.ac.uk/31075/ https://eprints.nottingham.ac.uk/31075/ https://eprints.nottingham.ac.uk/31075/ |