Platform Pricing and Service Strategies: Consumer Segmentation and Full Coverage Replacement Decisions in Digital Supply Chains

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Authors: Bing Teng
Cited by: 0

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