Platform Pricing and Service Strategies: Consumer Segmentation and Full Coverage Replacement Decisions in Digital Supply Chains
Abstract
This study examines how platform operators and manufacturers set pricing and channel strategies when offering optional product full coverage replacement services. A game-theoretic model is developed with two consumer groups: those purchasing only the base product and those choosing product–service solutions. The model considers commission rates, product failure risks, and the added utility of replacement services. The results show that when replacement services bring only modest consumer benefits, a unified market-wide pricing equilibrium arises. By contrast, when replacement services strongly enhance consumer value and key thresholds are met, premium pricing strategies within the bundled segment become optimal. This research integrates market segmentation with product full coverage replacement services and sheds light on the links between consumer preferences, commission mechanisms, and product risks.
Fields of Study & Subjects
Supply Chain and Inventory Management
Sustainable Supply Chain Management
Consumer Market Behavior and Pricing
Publication details
- Journal / source
- Advances in Economics Management and Political Sciences
- Volume
- 254
- Issue
- 1
- Pages
- 14–21
- Publication date
- 12 January 2026