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Two-dimensional Warranty Cost Analysis for Second-hand Products

Shafiee, Mahmood, Chukova, Stefanka, Saidi-Mehrabad, Mohammad, Niaki, Seyed Taghi Akhavan (2011) Two-dimensional Warranty Cost Analysis for Second-hand Products. Communications in Statistics-Theory and Methods, 40 (4). pp. 684-701. ISSN 0361-0926. (doi:10.1080/03610920903453442) (KAR id:80815)

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In spite of the recent steady increase of the volume of the second-hand markets, often customers remain in doubt regarding the quality and durability of the secondhand products. Aiming to reduce and share this uncertainty, dealers offer warranty on their products. Offering warranty for second-hand products is a relatively new marketing strategy employed by dealers of used electronic equipment, furniture, automobiles, etc. Usually, for used products, the dealer’s expected warranty cost is a function of product reliability, past age and usage, servicing strategy and conditions and terms of the warranty policy/contract. Sometimes the offered policy is limited by two parameters, typically the product age and usage after the sale. This type of policies is referred to as two-dimensional warranty policies. In this article, we develop statistical models for estimating the dealer’s expected warranty cost for second-hand products sold with two-dimensional free repair/replacement warranty.

Item Type: Article
DOI/Identification number: 10.1080/03610920903453442
Uncontrolled keywords: Expected warranty cost; Free repair/replacement; Second-hand product; Two-dimensional warranty; Usage rate.
Subjects: T Technology > TA Engineering (General). Civil engineering (General) > TA165 Engineering instruments, meters etc. Industrial instrumentation
T Technology > TA Engineering (General). Civil engineering (General) > TA168 Systems engineering
T Technology > TA Engineering (General). Civil engineering (General) > TA401 Materials engineering and construction
T Technology > TJ Mechanical engineering and machinery
Divisions: Divisions > Division of Computing, Engineering and Mathematical Sciences > School of Engineering and Digital Arts
Depositing User: Mahmood Shafiee
Date Deposited: 10 Apr 2020 16:39 UTC
Last Modified: 16 Nov 2021 10:26 UTC
Resource URI: (The current URI for this page, for reference purposes)
Shafiee, Mahmood:
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