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CN 34-1054/N

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Service quality standard and pricing decision for wedding-car leasing platforms

  • 1.

    School of Management, University of Science and Technology of China, Hefei 230026, China

  • 2.

    School of Management, Zhejiang University, Hangzhou 310058, China

Cite this:
https://doi.org/10.3969/j.issn.0253-2778.2016.12.009
  • Received Date: 20 January 2016
  • Accepted Date: 12 April 2016
  • Rev Recd Date: 12 April 2016
  • Publish Date: 30 December 2016
    Abstract

  • Abstract

    Typically, wedding-car leasing platforms gather a number of wedding-cars together and then provide service for clients. Besides pricing for both sides of platforms under the consideration of two-sided network externalities, the service quality provided by platforms is also important. A dynamic game model was built to investigate the trade-offs of pricing decision and service quality. Two distinct settings, charge fees by the cost of one car and charge fees by total cost, were considered. By analyzing the model the optimal service quality and optimal pricing decision were obtained, and the effects of customer and wedding-car externalities on optimal service quality and optimal pricing decision were revealed.

    Abstract

    Typically, wedding-car leasing platforms gather a number of wedding-cars together and then provide service for clients. Besides pricing for both sides of platforms under the consideration of two-sided network externalities, the service quality provided by platforms is also important. A dynamic game model was built to investigate the trade-offs of pricing decision and service quality. Two distinct settings, charge fees by the cost of one car and charge fees by total cost, were considered. By analyzing the model the optimal service quality and optimal pricing decision were obtained, and the effects of customer and wedding-car externalities on optimal service quality and optimal pricing decision were revealed.
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    • References(19)
  • [1]
    DESAI P, PUROHI D. Leasing and selling optimal marketing strategies for a durable goods firm[J]. Management Science, 1998, 44(11): 19-34.
    [2]
    DESAI P, PUROHI D. Competition in durable goods markets: The strategic consequences of leasing and selling[J] .Marketing Science, 1999, 18(1): 42-58.
    [3]
    梁喜. 零售与租赁混合渠道下的汽车制造商渠道结构比较[J].系统工程,2008,27(8): 8-13.
    LIANG Xi. Comparative analysis of carmakers channel structure in hybrid channel of retail and rental[J]. System s Engineering, 2008, 27(8): 8-13.
    [4]
    GRNROOS C. Marketing in Service Companies[M]. Malmo Liber, 1983.
    [5]
    GRNROOS C. Strategic Management and Marketing in the Service Sector[M].U.S.: Marketing Science Institute,1983.
    [6]
    PARASURAMAN A, ZEITHAML V A, BERRY L L. A conceptual model of service quality and its implications for future research[J]. Journal of Marketing, 1985, 49: 41-50.
    [7]
    PARASURAMAN A, ZEITHAML V A, BERRY L L. SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality[J]. Journal of Retailing, 1988, 64(1): 12-40.
    [8]
    AKBABA A. Measuring service quality in the hotel industry: A study in a business hotel in Turkey[J].International Journal of Hospitality Management, 2006, 25: 170-192.
    [9]
    CRISTOBAL E, FLAVIAN C, GUINALIU M. Perceived e-service quality (PeSQ): Measurement validation and effects on consumer satisfaction and web site loyalty[J]. Managing Service Quality, 2007, 17(3): 17-40.
    [10]
    DABHOLKAR P A, THORPE D L, RENTZ J O. A measure of service quality for retail stores: Scale development and validation[J].Journal of Academy of Marketing Science, 1996, 24(1): 3-14.
    [11]
    蒲国利,苏秦,戴宾.基于容忍区域理论的我国零售业服务质量测量方法[J].系统工程,2012,30(9),9-19.
    PU Guoli, SU Qin, DAI Bin. Using zone of tolerance to measure service quality of retail industry in China[J]. Systems Engineering, 2012,30(9),9-19.
    [12]
    ROCHET J C,TIROLE J. Platform competition in two-sided markets[J].J Eur Econ Assoc,2003,1(4):990-1 029.
    [13]
    CAILLAUD B, JULLIEN B. Chicken & egg: Competition among intermediation service providers[J].Rand J Econ, 2003: 309-328.
    [14]
    ROCHET J C, TIROLE J. Two-sided markets: A progress report[J]. Rand J Econ, 2006, 37(3): 645-667.
    [15]
    ARMSTRONG M. Competition in two-sided markets[J]. The RAND Journal of Economics, 2006, 37(3): 668-691.
    [16]
    HAGIU A. Pricing and commitment by two-sided platforms[J]. Rand J Econ, 2006, 37(3): 720-737.
    [17]
    BOUDREAU K. Open platform strategies and innovation: Granting access vs. devolving control[J]. Management Science, 2010, 56(10): 1 849-1 872.
    [18]
    HAGIU A, SPULBER D. First-party content and coordination in two-sided markets[J]. Management Science, 2013, 59(4): 933-949.
    [19]
    纪汉霖. 用户部分多归属时的平台企业定价及选址问题[J].系统工程,2010,28(3):40-45.
    JI Hanlin. Hotellings competition in pricing and location selection of two-sided market platforms when users partially multihoming[J]. Systems Engineering, 2010, 28(3):40-45.
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    [1]
    DESAI P, PUROHI D. Leasing and selling optimal marketing strategies for a durable goods firm[J]. Management Science, 1998, 44(11): 19-34.
    [2]
    DESAI P, PUROHI D. Competition in durable goods markets: The strategic consequences of leasing and selling[J] .Marketing Science, 1999, 18(1): 42-58.
    [3]
    梁喜. 零售与租赁混合渠道下的汽车制造商渠道结构比较[J].系统工程,2008,27(8): 8-13.
    LIANG Xi. Comparative analysis of carmakers channel structure in hybrid channel of retail and rental[J]. System s Engineering, 2008, 27(8): 8-13.
    [4]
    GRNROOS C. Marketing in Service Companies[M]. Malmo Liber, 1983.
    [5]
    GRNROOS C. Strategic Management and Marketing in the Service Sector[M].U.S.: Marketing Science Institute,1983.
    [6]
    PARASURAMAN A, ZEITHAML V A, BERRY L L. A conceptual model of service quality and its implications for future research[J]. Journal of Marketing, 1985, 49: 41-50.
    [7]
    PARASURAMAN A, ZEITHAML V A, BERRY L L. SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality[J]. Journal of Retailing, 1988, 64(1): 12-40.
    [8]
    AKBABA A. Measuring service quality in the hotel industry: A study in a business hotel in Turkey[J].International Journal of Hospitality Management, 2006, 25: 170-192.
    [9]
    CRISTOBAL E, FLAVIAN C, GUINALIU M. Perceived e-service quality (PeSQ): Measurement validation and effects on consumer satisfaction and web site loyalty[J]. Managing Service Quality, 2007, 17(3): 17-40.
    [10]
    DABHOLKAR P A, THORPE D L, RENTZ J O. A measure of service quality for retail stores: Scale development and validation[J].Journal of Academy of Marketing Science, 1996, 24(1): 3-14.
    [11]
    蒲国利,苏秦,戴宾.基于容忍区域理论的我国零售业服务质量测量方法[J].系统工程,2012,30(9),9-19.
    PU Guoli, SU Qin, DAI Bin. Using zone of tolerance to measure service quality of retail industry in China[J]. Systems Engineering, 2012,30(9),9-19.
    [12]
    ROCHET J C,TIROLE J. Platform competition in two-sided markets[J].J Eur Econ Assoc,2003,1(4):990-1 029.
    [13]
    CAILLAUD B, JULLIEN B. Chicken & egg: Competition among intermediation service providers[J].Rand J Econ, 2003: 309-328.
    [14]
    ROCHET J C, TIROLE J. Two-sided markets: A progress report[J]. Rand J Econ, 2006, 37(3): 645-667.
    [15]
    ARMSTRONG M. Competition in two-sided markets[J]. The RAND Journal of Economics, 2006, 37(3): 668-691.
    [16]
    HAGIU A. Pricing and commitment by two-sided platforms[J]. Rand J Econ, 2006, 37(3): 720-737.
    [17]
    BOUDREAU K. Open platform strategies and innovation: Granting access vs. devolving control[J]. Management Science, 2010, 56(10): 1 849-1 872.
    [18]
    HAGIU A, SPULBER D. First-party content and coordination in two-sided markets[J]. Management Science, 2013, 59(4): 933-949.
    [19]
    纪汉霖. 用户部分多归属时的平台企业定价及选址问题[J].系统工程,2010,28(3):40-45.
    JI Hanlin. Hotellings competition in pricing and location selection of two-sided market platforms when users partially multihoming[J]. Systems Engineering, 2010, 28(3):40-45.
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