{"title":"Pricing Considering Quality: A Strategy Analysis of Payment Forms","authors":"Lei Fang, Yanlin Li, Kannan Govindan","doi":"10.1002/mde.4445","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>We analyze three business models for electric vehicle power battery use: (1) pure selling strategy, (2) pure leasing strategy, and (3) innovative hybrid strategy where both the selling and leasing services are provided by one monopoly firm simultaneously. The firm decides the power battery quality. We demonstrate that the relative profitability of the monopoly firm's different strategies hinges on the customer's psychological cost and the leasing product's supply–demand ratio. Counterintuitively, for the monopoly firm, when product quality is endogenous, the hybrid strategy is not always more profitable than the pure selling strategy, which differs from the previous studies.</p>\n </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 3","pages":"1721-1734"},"PeriodicalIF":2.5000,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial and Decision Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/mde.4445","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
We analyze three business models for electric vehicle power battery use: (1) pure selling strategy, (2) pure leasing strategy, and (3) innovative hybrid strategy where both the selling and leasing services are provided by one monopoly firm simultaneously. The firm decides the power battery quality. We demonstrate that the relative profitability of the monopoly firm's different strategies hinges on the customer's psychological cost and the leasing product's supply–demand ratio. Counterintuitively, for the monopoly firm, when product quality is endogenous, the hybrid strategy is not always more profitable than the pure selling strategy, which differs from the previous studies.
期刊介绍:
Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.