Trade-in services have been widely adopted by firms in electric vehicles(EVs)to retain replacement consumers and to enhance brand loyalty.In this initial stage of the EV diffusion,it is still ambiguous which trade-in strategy(i.e.,the whole EV trade-in and the mixed one)would be more beneficial to EV-makers in the context of future business.We have developed a stylized model to analyze the impact of different EV trade-in strategies and other relevant factors on the EV maker's payoffs.The EV maker's demand is derived from consumers'utility under a trade-in scheme.Various trade-in factors such as trade-in rebate and residual value are considered.Finally,from the perspective of consumer surplus and social welfare,the paper discusses the social advantages of two trade in strategies.The result shows that the whole EV trade-in option is a better choice for the EV firms if the residual value of used EV is relatively high,otherwise the EV firms prefer the mixed one.Intriguingly,the battery trade-in option benefits replacement consumers due to a relatively high trade-in rebate while may hurt new consumers;under whole EV trade-in scenario,new consumers obtain more utilities from purchasing new products than those under the only battery trade-in,meanwhile the market size affects the EV firms'optimal decisions.In addition,EVs enterprises and consumers benefit from government subsidies,and government subsidies under the mixed trade-in strategy can bring better benefits to them.The research of this paper has certain theoretical guiding significance for EVs enterprises to implement the old for new strategy and the government subsidy policy.
Electric Vehicles(EVs)Trade-in ServicesCustomer SegmentationPriceGovernment Subsidy
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维普
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