Trade‐Up Pricing With a Secondary Resale Market
研究了制造商在二级市场存在时，如何动态定价以旧换新计划，发现仅当回收价适中时该计划才有利可图，且基于中国回收平台数据估计iPhone 12采用动态计划可提升利润0.11%至4.19%。
ABSTRACT With the thriving secondary market, customers can easily sell their used products before upgrading to new products released by manufacturers. Despite this, some manufacturers provide trade‐up programs to incentivize repeat purchases by offering attractive discounts for upgrading to new product generations in exchange for returning used products. This study investigates a manufacturer's dynamic pricing decisions for trade‐up programs, considering time‐varying customers' choice behavior and changing recycling prices in the secondary market. We find that offering a trade‐up program is profitable for the manufacturer only when the recycling price in the secondary market is moderate. Interestingly, even if both customers' valuation of the old product and its recycling price decrease over time, the manufacturer can benefit from charging a lower trade‐up price (i.e., offering a higher trade‐up discount) under certain conditions. Using real data from a Chinese recycling platform, we estimate a potential relative profit improvement of 0.11% to 4.19% from adopting a dynamic trade‐up program for iPhone 12. Additionally, we compare dynamic and static trade‐up programs, revealing that a static program may suffice under certain circumstances. We also investigate extensions with limited new product inventory and varying returned product conditions.