Abstract: In practice, the firms usually offer trade-in services to replacement customers with used products to improve their sales and profits. It assumes in this paper that a monopoly manufacturer offers four types of rebate payments of trade-in service to replacement customers: only gift card card (G), only cash (C), gift card and cash for customers to choose alternatively (GC), and gift and cash (G+C). Four trade-in mathematical models under different types of rebate payments are established to determine the manufacturer's optimal new product price, rebate payment price and rebate payment type. Results show that the optimal new product prices of model G, GC and G+C are the same, and higher than that of model C; the optimal gift card rebate payment prices of model G and GC are the same, and higher than that of model G+C; the optimal cash rebate payment prices of model GC and G+C are the same, and lower than that of model C; the optimal profits of model GC and G+C are the same, and larger than those of model G and C, and the profits of model G and C depend on the residual value of used products and other parameters.
Keywords: trade-in; gift card; cash; rebate payment; pricing
合肥工业大学学报自科版