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| Author: | Cohen, M. A. Whang, S. |
| Title: | Competing in product and service: A product life-cycle model |
| Journal: | Management Science
1997 : FEB, VOL. 43:4, p. 535-545 |
| Index terms: | SERVICE MANAGEMENT LOGISTICS AFTER-SALES SERVICE INVENTORIES |
| Language: | eng |
| Abstract: | This study develops a product life-cycle model that studies a set of strategic choices facing manufacturers as they design the joint product or service bundle for a product requiring maintenance and repair support after its sale. A competitive game-theoretic framework is adopted, where there is competition for the provision of after-sales service between an independent service operator and the manufacturer.An equilibrium to sequential game characterizes the product price and the service quality or price. The resulting outcome is applied to support the valuation of alternative product designs in explicit consideration of the tradeoff between product sale profit and form after-sales service provision. |
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