Autonomous trade-in strategy for retailer with market segmentation
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    Abstract:

    With more and more companies beginning to carry out autonomous trade-in strategy,this paper builds strategy models from the viewpoint of supply chain based upon the market segmentation and consumer u-tility. The models are used to study the selection of autonomous trade-in strategy and corresponding supply chain decision-making problems. The study focuses on analyzing the impact of market segmentation and prod-uct depreciation on strategy selection,decision making,and supply chain efficiency. It is found that the strat-egy selection of the retailer depends on the proportion of the external customers and the degree of the product depreciation in addition to the manufacturing cost. When the proportion of old customers and the degree of the products depreciation fall into a certain region,the autonomous trade-in strategy works better than either non-trade-in strategies. In some cases,the manufacturer’s expectation strategy runs in contrast to the retailer’s optimal strategy. Supply chain efficiency is impacted by the proportion of customers and the product deprecia-tion. In addition,when the proportion of old customers or the product depreciation is above a certain thresh-old,the old customers make more contributions to the main bodies’profit than new customers. The research provides certain theoretical guidance for companies implementing the trade-in policy in the supply chain envi-ronment.

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  • Online: April 14,2018
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