Leasing and selling: optimal marketing strategies for a durable goods firm

Article Abstract:

A study was conducted to analyze concerns related to the marketing of a durable product through sales and leases. The study examined the correlation between profitability of leasing and selling with the depreciation rates of leased and sold units. An evaluation of the depreciation rates of leased and solid units of an automobile model was also carried out. The physical wear and tear of the automobile product was considered by interchangeably using depreciation and deterioration. In addition, assumptions on depreciation emphasized that consumers want a new car to a used one. Results indicated that the depreciation rates of leased automobiles were lower than those of sold units. Findings also showed problems related to the selling of durable goods in a monopoly.

Motor vehicles and car bodies, Automobile Rent & Lease, Passenger Car Rental and Leasing, Automobiles, Automobile Manufacturing, Automotive Rentals, No Drivers, Market Research, Capital Management-Depreciation, Sales Management NEC, Analysis, Marketing, Marketing research, Leases, Sales management, Depreciation

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Optimal promotion strategies: a demand-sided characterization

Article Abstract:

A study was conducted to determine which product categories firms prefer to promote. A generalization of Narasimhan's model of retail promotion was made to incorporate multiple products and general demand functions. This facilitates the deeper definition of the optimal promotion strategies. Findings revealed that firms choose to provide more comprehensive promotions on products that are more popular among switching customers than among loyal customers, and that have high price sensitivity of demand for both types of customers. In addition, results revealed that firms give deeper promotions on products that have complementary relationships with other products that they offer instead of on products for which the firm markets a substitute.

Consumer preferences, Sales promotions

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Optimal Strategies for Selling an Asset

Article Abstract:

The problem of selling an asset, where a random sequence of offers is received, is considered. After each offer is received, a sell or no-sell decision is reached. Other authors have written about the problem when the offer distribution is known and the offer rate is periodic. This model works when the distribution of offers is unknown and the seller's prior distribution of offers undergoes Bayesian updating as successive offers are received.

Management science, Dynamic programming, Modeling, Data modeling software, Companies, Models, Optimization, Probability, Search Strategy, Capital Asset, Bayesian Theory

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