Nash Feature Package of an Integrated Finance Lease-Sales System for Cautious Customers

Nash Feature Package of an Integrated Finance Lease-Sales System for Cautious Customers

Masoud Rabbani (School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran), Sina Keyhanian (Department of Industrial Engineering and Management Systems, Amirkabir University of Technology (Tehran Polytechnic), Tehran, Iran, & University of Groningen, Groningen, Netherlands), Maryam Ghazanfari (School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran), Marzieh Baseri (School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran) and Moeen Sammak Jalali (School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran)
Copyright: © 2015 |Pages: 21
DOI: 10.4018/ijsds.2015010104

Abstract

Higher inflation rate and subsequently, higher prices make customers consider other options except purchasing products to meet their requirements. Therefore, demand for leasing is rising meaningfully in such conditions. Companies producing costly products are considering leasing as a new approach for getting higher profit. In this study, the authors assume the case of sale and leasing departments as two different parts in a company. There are strategies assumed for both sections of a company, which make multiple feature packages. The objective is to define the best strategy for both departments in a competitive game theory model considering customers' behavior towards different offered packages. A heavy equipment company with sale and leasing department as a case study has been studied, and the Nash equilibrium is selected based on game theory.
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1. Introduction

1.1. Motivation and Significance

At the current competitive market, all the marketers are trying to promote their sales by means of many ways such as assigning suitable prices, increasing their products quality, and publicizing. Manufacturers also try to reduce their costs and increase their income aimed at maximizing their profit. Researchers have done different endeavors to promote revenue management methods and assorted pricing models, which are different in retailer and customer’s view. Having these characteristics taken into account, literature survey of this paper shows that theres is a need to dedicate research works to the development of models and approaches to provide methods with the intention of achieving the defined goal(s) for a company (i. e., promoting sales by means of revenue optimization methods)

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