Analysis of Modular Architecture and Trade-in

DOI

10.2991/snce-17.2017.40How to use a DOI?

Keywords

Modular Architecture; Pricing; Trade-in

Abstract

This paper studies the problem of modular architecture when the durable goods are sequential innovation and manufacturers adopt the trade-in policy. It is assumed that consumer preferences for product quality are uniformly heterogeneous. In order to expand sales, the manufacturers used the trade-in policy to buy back the old modules. Through the study found that, The manufacturer's profit is commonly effect by upgrading quality loss and the second version improved module and the launch time of second version product and not the loss degree is low, the high quality of product must makes high profits. When the product is gradual improvement, the quality of the second version product is not high, the attraction of high-end consumers is insufficient, so these consumers will choose to buy the first version of product and then upgrade product. if the product design can not make the loss degree low enough, the manufacturer should not put much resources into the improvement of the performance module in the future to improve the quality.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Luo Zican
AU  - Shen Houcai
PY  - 2017/07
DA  - 2017/07
TI  - Analysis of Modular Architecture and Trade-in
BT  - Proceedings of the 2017 7th International Conference on Social Network, Communication and Education (SNCE 2017)
PB  - Atlantis Press
SP  - 199
EP  - 206
SN  - 2352-538X
UR  - https://doi.org/10.2991/snce-17.2017.40
DO  - 10.2991/snce-17.2017.40
ID  - Zican2017/07
ER  -