After-sales service competition in a supply chain: Optimization of customer satisfaction level or profit or both?

Hisashi Kurata and Seong-Hyun Nam

International Journal of Production Economics, 2010, vol. 127, issue 1, 136-146

Abstract: For durable consumer products, after-sales services play an important role in customers' purchase decisions. A manufacturer offers basic warranty available to all customers who buy the product, while a retailer offers optional after-sales service that is available only to customers who pay for the option. We explore the interaction of these two after-sales services assuming two customer segments. Formulating five analytical models, we found that after-sales service plans that are determined to maximize profits do not match optimal after-sales service levels that can satisfy customers the most.

Keywords: After-sales; service; Supersaturation; Supply; chain; management; Game; theory; Marketing-operations; interface (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (27)

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