The impact of third-party-oriented refurbishing on new product quality choice for the original equipment manufacturers.

Autor: Ayuningtyas, Agista, Kurdhi, Nughthoh Arfawi, Saputro, Dewi Retno Sari
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Zdroj: AIP Conference Proceedings; 2024, Vol. 3074 Issue 1, p1-10, 10p
Abstrakt: Numerous research has recently studied how original equipment manufacturers (OEMs) might use product quality as a strategic factor in refurbishing. However, people typically believe that third parties (TPs) and OEMs perform refurbishing activities. However, many OEMs sued those TPs without obtaining licenses, but they paid some third parties to handle the refurbishing instead (CTs). Thus, we investigate the effects of OEMs' strategic choices on the desired quality level during refurbishment. In this study, we examine two models that represent two situations: (1) in-house refurbishing (Model I) or (2) third-party refurbishing (Model O). The OEM can choose the new product's quality to access a new market segment or address the cannibalization issues caused by refurbishing. There are two market segments: high-end and low-end. In this study, we propose a model in which a firm's choice is guided by estimating the number of customers switching for a given price difference. The OEM adjusts the wholesale costs and specifications of the new product. We derive some interesting insights. The models provide the optimal solutions, and a numerical example is presented for illustrative purposes. [ABSTRACT FROM AUTHOR]
Databáze: Complementary Index