How does a retailer's service plan affect a manufacturer's warranty? / Bo Jiang in Management science, Vol. 57 N° 4 (Avril 2011)  

Public ISBD [article]  inManagement science > Vol. 57 N° 4 (Avril 2011) . - pp. 727-740 Titre : How does a retailer's service plan affect a manufacturer's warranty? Type de document : texte imprimé Auteurs : Bo Jiang, Auteur ; Xubing Zhang, Auteur Année de publication : 2011 Article en page(s) : pp. 727-740 Note générale : Management Langues : Anglais (eng) Mots-clés : Service plans Warranty Signaling Distribution channels Game theory Index. décimale : 658 Organisation des entreprises. Techniques du commerce Résumé : A service plan is a type of optional warranty beyond manufacturers' base warranties that retailers offer to consumers. In this paper, we examine how a service plan affects the role played by a manufacturer's base warranty. Analysis shows that when consumers can assess product quality (i.e., the probability of product failure), the manufacturer's warranty is negatively affected by the presence of a service plan. In the presence of such a plan, a base warranty is offered only when the manufacturer is very cost-efficient in providing a warranty relative to the retailer. In this case, although the double-marginalization problem is aggravated, offering a (limited) base warranty reduces the total warranty cost in the channel and provokes the retailer into enlarging the service plan coverage. When consumers cannot assess product quality, a high-quality manufacturer is motivated to offer a base warranty to signal its quality. In the presence of a service plan, however, a very cost-efficient manufacturer is discouraged from doing so. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/cgi/content/abstract/57/4/727 [article] How does a retailer's service plan affect a manufacturer's warranty? [texte imprimé] / Bo Jiang, Auteur ; Xubing Zhang, Auteur . - 2011 . - pp. 727-740. Management Langues : Anglais (eng) in Management science > Vol. 57 N° 4 (Avril 2011) . - pp. 727-740 Mots-clés : Service plans Warranty Signaling Distribution channels Game theory Index. décimale : 658 Organisation des entreprises. Techniques du commerce Résumé : A service plan is a type of optional warranty beyond manufacturers' base warranties that retailers offer to consumers. In this paper, we examine how a service plan affects the role played by a manufacturer's base warranty. Analysis shows that when consumers can assess product quality (i.e., the probability of product failure), the manufacturer's warranty is negatively affected by the presence of a service plan. In the presence of such a plan, a base warranty is offered only when the manufacturer is very cost-efficient in providing a warranty relative to the retailer. In this case, although the double-marginalization problem is aggravated, offering a (limited) base warranty reduces the total warranty cost in the channel and provokes the retailer into enlarging the service plan coverage. When consumers cannot assess product quality, a high-quality manufacturer is motivated to offer a base warranty to signal its quality. In the presence of a service plan, however, a very cost-efficient manufacturer is discouraged from doing so. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/cgi/content/abstract/57/4/727

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