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Author:

Li, Jian (Li, Jian.) | Wang, Huan (Wang, Huan.) | Deng, Zhiwen (Deng, Zhiwen.) | Zhang, Wen (Zhang, Wen.) (Scholars:张文) | Zhang, Guoqing (Zhang, Guoqing.)

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Abstract:

In this paper, we explore how a monopoly manufacturer chooses the market strategies and decides the optimal price to obtain maximum profit. We divide the market into the C-type market and the N-type market, and analyze the profitability of the monopoly manufacturer who takes the pure-selling, pure-leasing and hybrid strategy respectively, considering consumers' capital constraint and the life span of the durable goods in an indefinite time horizon model. (1) We find that a larger proportion of the consumers with capital constraint has a more significant impact on the prices and it could slow down the development of the rental market. When the scale of the group attains up to a threshold level, it would greatly influence the customers' demand and their marketing strategy, and encourages more manufacturers to take the leasing strategy. (2) In the Hybrid Strategy, we see explicit growth in the overall profit with both the leasing channel and the selling channel working together, although the former outperforms the latter. The suppressed selling channel, in fact, has to lower the price to keep the market coverage, with an independent market structure. (3) Finally, we find that a leasing agent may help the manufacturer at first and then become a tough competitor. These findings provide new insights for the operation of large construction machinery manufacturing companies. subject classification numbers as needed.

Keyword:

Selling channel Capital constraint Leasing channel Durable goods

Author Community:

  • [ 1 ] [Li, Jian]Beijing Univ Technol, Sch Econ & Management, Beijing Modern Mfg Ind Dev Res Base, Beijing, Peoples R China
  • [ 2 ] [Wang, Huan]Beijing Univ Technol, Sch Econ & Management, Beijing Modern Mfg Ind Dev Res Base, Beijing, Peoples R China
  • [ 3 ] [Zhang, Wen]Beijing Univ Technol, Sch Econ & Management, Beijing Modern Mfg Ind Dev Res Base, Beijing, Peoples R China
  • [ 4 ] [Deng, Zhiwen]Beijing Univ Chem Technol, Sch Econ & Management, Beijing, Peoples R China
  • [ 5 ] [Zhang, Guoqing]Univ Windsor, Fac Engn, Windsor, ON, Canada

Reprint Author's Address:

  • 张文

    [Zhang, Wen]Beijing Univ Technol, Sch Econ & Management, Beijing Modern Mfg Ind Dev Res Base, Beijing, Peoples R China;;[Zhang, Guoqing]Univ Windsor, Fac Engn, Windsor, ON, Canada

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Source :

FLEXIBLE SERVICES AND MANUFACTURING JOURNAL

ISSN: 1936-6582

Year: 2021

Issue: 2

Volume: 34

Page: 317-350

2 . 7 0 0

JCR@2022

ESI Discipline: ENGINEERING;

ESI HC Threshold:87

JCR Journal Grade:3

Cited Count:

WoS CC Cited Count: 7

SCOPUS Cited Count: 6

ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 3

Affiliated Colleges:

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