Game Analysis of Selecting Manufacturing Service Modes for Manufacturers

Abstract:

This analysis details manufacturers’ choices of self-service and outsourcing service modes, and the factors which influence manufacturers’ mode selection and pricing decisions, such as customer distribution for high-end and low-end markets, customer utility evaluation and transfer costs are analyzed in the frame work of the Hotelling model. The results indicate that customer utility evaluation for manufacturers’ self-service mode should be enhanced when manufacturers select this mode. And it is important for manufacturers who choose outsourcing service mode to improve service quality considering customer personal needs, expand differentiation of outsourcing services.

• Periodical: Advanced Materials Research (Volumes 201-203)
• Pages: 1107-1111
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.201-203.1107
• Online since: February 2011
• Authors: Xu Mei Zhang, Jie Tong, Min Zhao, Jia Rong Guo
• Keywords: Hotelling Model, Manufacturers’ Self-Service Mode, Manufacturing Service, Outsourcing Service Mode

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