Price and duration of extended warranty decisions on e-commerce platform under wholesale mode and consignment mode
To study the optimal price and duration strategy for e-commerce platform to provide extended warranty service,a Stackelberg game model was established.The optimal price and duration strategy of e-commerce platform extended warranty service under wholesale and consignment mode was compared.The influence of different modes,extended warranty cost and commission level on the optimal extended warranty strategy was revealed.The result showed that the extended warranty benefited the e-commerce platform under the wholesale model and damaged the manufacturer's profit.Under the consignment mode,the e-commerce platform provided extended insurance services without affecting the manufacturer's profit when the commission was high;the manufacturer and the e-commerce platform could form a win-win situation in the consignment mode when the commission was low,and the effective-ness of the base warranty was high;the two models had the same demand for the extended warranty,the same unit price of the extended warranty,and there was a proportional relationship between the duration and product price,which was affected by the base warranty and extended warranty effectiveness,extended warranty price and cost.E-commerce platforms should provide differentiation services for products with different commissions.
extended warrantywholesale modeconsignment modeStackelberg game