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| Author: | Desai, P. Purohit, D. |
| Title: | Leasing and selling: Optimal marketing strategies for a durable goods firm. |
| Journal: | Management Science
1998 : NOV, VOL. 44:11:2:2, p. S20-S34 |
| Index terms: | Marketing strategy Consumer durables Cars |
| Language: | eng |
| Abstract: | The authors analyze the problems associated with marketing a durable through leases and sales. They show that the relative profitability of leasing and selling hinges on the rates at which leased and sold units depreciate. The conclude the paper with an empirical analysis of the depreciation rates of leased and sold units of a popular car model, and find that the depreciation rate of leased cars has been significantly lower than the depreciation rate of sold cars. |
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