This paper empirically explores the degree to which consumers perceive a manufacturer’s warranty as a signal of unobservable product quality. Data on household purchases of new automobiles from the Consumer Expenditure Survey are used to estimate both conditional and mixed logit models of consumer demand, with the indirect utility specification extended to incorporate the impact of manufacturer...

In this paper, we present an optimal burn-in model for repairable assembly products (RAP) sold under warranty. The general repairable products, sold under warranty and optimal burn-in model by Sheu (2004) are further extended to the case in which the probability of type II failure is independent for a parent item. This paper investigates a parent item (product or system) made up of two items (s...

This study examines pricing decisions by considering two manufacturers’ warranty and bundling strategies using spatial competition in a duopolistic market. With the development of advanced technology evolving societal needs, manufacturers now sell product with its complement—a warranty—using either bundled base or an unbundled extended strategy. To investigate impact strategy on models, we deve...

The quality loss function assumes a fixed target and only accounts for immediate issues within manufacturing facilities whereas warranty loss occurs during customer use. Based on the two independent variables, product performance and consumers’ expectation, a methodology to predict the probability of customer complaint is presented in this paper. The formulation presented will serve as a basic ...

In this paper a redundancy allocation problem is studied where for the first time the supplier selection is taken into consideration and redundant components are provided from appropriate suppliers with the most suitable offers such as discount on buying price of components, warranty length for components, things like that, so that the system reliability, profit and the warranty length proposed...

During extended warranty (EW) period, maintenance events play a key role in controlling the product systems within normal operations. However, modelling of failure process and optimization is complicated owing to complex features system, namely, components multi-component system are interdependent with each other some form. For purpose optimizing EW pricing decision scientifically rationally, t...